THE ONLY PEOPLE WHO GET RICH RENTING
MOBILE HOMES ARE THE TENANTS AND MAINTENANCE MEN
Written
by Frank Rolfe and Dave Reynolds, MobileHomeParkStore.com, LLC
There are a lot of books out there extolling the financial benefits of
buying mobile homes for purposes of renting them out. DON’T BE SUCKERED INTO
THIS NONSENSE. These books generally leave out three important problems that
turn any proposed economics into bankruptcy.
They are:
-
Tenants will trash the property and
steal appliances (including furnaces and air-conditioners) on just about
every rental, and the cost to repair will exceed your gross rent
-
Tenants will never pay their rent on
time, and will require a costly eviction and writ of execution to get
them out for only a few short months.
-
Mobile homes make for lousy rental
properties because they are too flimsily constructed. Who ever heard of
1” x2” framing? Go to a factory and see for yourself how they’re built.
A 10 year old can rip a door off its hinges
So what does this mean? It means that any
revenue you take in will immediately go back out the door (and then some) in
repairs and make-ready, and legal fees.
Don’t believe us? Look at the financial statements of those publicly held
REITs that rent mobile homes and see how impressive those numbers are. Or
talk to someone who has already made such an investment and see how they’re
doing. You’ll soon get the accurate picture.
I once had a guy come up to me at eviction in court, out in the hallway.
This guy liked to go around and buy properties this way, hoping that
disgusted landlords would sell them cheap, and he would then throw them into
his slumlord empire. I told him my properties were mobile homes – not
stick-built houses. He looked at me and said “I don’t deal in that junk –
there’s no money in it!” That’s the most accurate analysis I’ve heard
(unless you own the park).
So why do they sell such books? Because
everyone wants to believe that there is a great rich quick scheme out there,
even when they know it sounds too good to be true. If you want to learn how
to REALLY make money in the mobile home business,
especially with the mobile home side of it check out our new book titled
"The Insider's Guide to Buying New and Used Mobile Homes" available on our
bookstore.
http://www.mobilehomeparkstore.com/books.htm
