Are Mobile Homes a Good Investment?

Don’t forget we have the tour coming to you linked below lindsay asks can you do a video on investing in mobile homes i’m not talking about mobile home parks but individual units within the parks here’s the thing i hate mobile homes for 4 main reasons a lot of money can be made from mobile homes especially if you buy like really cheap one and you pull out the

Unit and you just basically custom build a new one and in factory and have it plopped onto the spot and then resell it there’s a big business of flipping these mobile home units individually but for the average investor i generally don’t recommend them and the four reasons why our first financing the financing is terrible you’re not gonna get the typical 30-year

Fixed-rate conventional financing generally you have to put more money down we’re talking 30 to 40 percent down you’re not doing 5 10 15 20 percent down you’re usually not getting the 30-year fixed-rate loan or those interest rates instead oftentimes you’re seeing things like 20-year loans with with 7 year fixed rate terms you’re seeing a lot more of a commercial

Style of financing instead of a 4 percent interest rate you might see like a five and a half percent interest rate there are big variables in the financing that i just don’t like and it makes sense because the lenders are protecting themselves against the depreciating asset which brings up point number two depreciation and appreciation or lack thereof in california

There’s something called a four for three or four 33 something like this basically when a manufactured home gets attached to a foundation and you own the land you generally see appreciation these aren’t mobile homes anymore but i’m talking about those mobile homes that are manufactured and mobile that is they still got the wheels and you don’t own the land when

You don’t own the land you lease the land these mobile homes tend to drop in value much like vehicles do i rarely see them appreciate in fact most people who end up buying mobile homes end up losing money on them and just see them as a way to try to keep their living expenses lower and aren’t looking at them as an investment that’s because much like cars they go

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Down in value they depreciate and they don’t ride the real estate wave as well as houses do mostly because you don’t actually own anything you own a personal piece of property and you get dmv stickers you don’t get title to land or deed of real estate it’s not really real estate investing the third problem is you generally don’t have any control over what’s called

The space rent that is oh yeah i’m plot number 50 and i parked my mobile home on it well space rent can oftentimes be a ridiculously expensive amount to essentially lease the land you’re parked on from the park owner well unfortunately these rents go up and very unlike a mortgage where when you lock in let’s say a mortgage on a house and it’s $2,000 a month your

Payment stays the same with the exception of like insurance and property taxes your principal and interest your loan payment stay the same space rent goes up with inflation or more space rent oftentimes goes up dramatically as well when properties change hands so an owner might have let’s say a $700 space rent somebody else comes in to buy it it gets reassessed

And all of a sudden the space rent goes to like $1,200 it’s absolutely obscene the rules for land leases on these mobile home parks they make no sense to me they blow my mind i can’t stand them i’ve actually stopped as a real estate broker working with mobile homes in the past i used to transact my bulbs i ain’t doing it anymore it’s mostly because i like to sell

Things that i believe in i guess this is where i would usually say something like like my real estate investing course which you could get for 18 percent off if you use spring 2019 but really the last reason i hate mobile homes is generally there’s a restriction against renting them out which to me defeats the purpose of owning real estate if you buy something and

You can’t rent out that that defeats everything that i preach about real estate that you should buy a home don’t over and prove it make the numbers make sense buy it as a good deal turn it into a rental to me that’s how you build wealth in real estate and because mobile homes don’t appreciate and you can’t rent them out and you don’t have control over the land

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Lease and the financing sucks i don’t like mobile homes jason ass hey kevin i bought my first property and got a bathroom added but my toilets gurgle and when i wash the dishes for a bit the water gets in my shower that dude that did the renovation doesn’t want to come back and fix it how would you handle the situation well jason this sounds pretty crappy no pun

Intended realistically it’s quite possible that these new added drains the the bathroom toilet and the bathroom shower that was added if there’s a shower it looks like there is didn’t get properly vented to the exterior of the property see here’s the thing i’m not a plumber so don’t sue me bro and instead of thinking about suing me if i’m wrong about anything make

Sure to buy this shirt here see it says don’t sue me bro that’s because i’m all for sharing my opinion but qualifying that i’m a real estate broker not a plumber or financial adviser or an attorney or whatever else you think it is that i am when you have something like a drain that is supposed to you know collect the water in your shower or whatever the problem is

Oftentimes when they set up these drains which are supposed to have what’s called a p-trap in them which kind of just looks something like this and then you get this vent that goes up the wall and then you get the drain that kind of goes down the wall that might not be the most pretty representation of a p-trap but it’s supposed to look like a p-trap and don’t get

Me wrong i don’t mean p as in like p going down it and peeing in the shower i mean p is in the shape of it the point is when you drain water down a plumbing system if there is no vent or the vent is too small and it’s constricted and basically the drains are struggling to get air then you get gurgling and bubbling think about it this way have you ever gone to those

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Five gallon jugs in like euro surrey store or whatever and or in an office like a cpa or doctor’s office and you take your cup and you fill it up with water you know how it goes like literally that’s because it’s trying to get air from the top the same thing could be happening in your plumbing system if there’s not enough air to let the water flow so unfortunately

If this is somebody that was unlicensed uninsured there might be little you can do other than file a small claims lawsuit against the person you just have to know where they live hopefully there’s still local because obviously that’s messed up it should not be doing that and i kind of sucks the benefit of using licensed people is you would have and maybe you did

Use somebody licensed in which case look up their contractors bond so you can file a claim against what’s known as their surety bond for not properly doing their work or completing their work and if that doesn’t work then there’s always general liability insurance if they’re actually become defects or issues which at this point sounds like there are good luck with

Real estate investing make sure you join me on tour because folks i don’t want to sell you something on the tour i want to teach you i want to grab you i want to feel you i don’t want to say hey why aren’t you investing in real estate that’s it can’t wait to see you there remember if you’re a member of the course you get $100 off to any of the tour events if you

Want to bring a plus-one you can do so and it ends up four course members being just 150 per ticket email me for details at kevin at me kevin comm doctor you later

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Are Mobile Homes a Good Investment? By Meet Kevin