Tag: are mobile homes a good investment in 2023

3 Common Lies Told About Mobile Homes!
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This is Mark with The Mobile Home Dealer and I want to thank you so much for taking a few minutes out of your busy day to learn about the three biggest lies we continue to be told about mobile homes on leased land.

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Mobile homes are having a tough life. They are stereotyped, misunderstood, judged, and always labeled negatively. The mobile home stereotype is one of the most prominent stereotypes in the US. When someone calls a mobile home “trailer trash”, they are essentially judging 2 million homes and more than 17 million people based on the actions of only a few.

Lies about mobile homes are abundant, and they contribute to the negative stereotype that surrounds them.

One of the common misperceptions is that mobile homes are inherently unsafe and prone to disasters such as fires or floods. However, this couldn’t be further from the truth. In fact, modern mobile homes are built with high-quality materials and must adhere to strict safety standards set by federal laws.

Another myth is that mobile homes depreciate quickly in value, making them a poor investment choice. Again, this notion is inaccurate since many factors affect a home’s appreciation or depreciation rate, including location, upkeep, and market demand.

Lastly, there’s a belief that living in a mobile home means sacrificing comfort and style for affordability. While it’s true that some older models may have limited design options or amenities compared to traditional houses, contemporary manufactured homes offer customizable floor plans with features like energy-efficient appliances and luxury finishes.

It’s time we debunk these lies about mobile homes so people can see their true value- affordable housing solutions without compromising quality or comfort.

These negativities surrounding mobile homes and manufactured homes are not just misunderstandings, they are outright lies. People are spreading it either intentionally or not based on personal reasons. Jealousy sometimes can be a big reason too.

The reason why these lies and stereotypes are never dying is because of some people who are mentioning these lies – journalists and other online platforms like blogs.As as long they make money out of their controversial content, they don’t care.

Let’s go ahead and dispel these three biggest lies that we hear all the time!

You ready, y’all?!

Lie Number One:

Mobile Homes Are Not Real Homes.

I hear this one all the time from folks who are not familiar with what mobile homes are and what they are not. Mobile homes that were built after 1976 have been held to strict building standards by the government agency HUD, just like that of stick and brick houses. This means that no home being built after June of 1976 can be approved for sale without the stamp of approval from HUD.

In my opinion, this puts mobile homes in the same category as regular stick and brick homes, right out of the shoe.

This is understandable though as some people who are not familiar with mobile homes may think of RVs and Caravans which are in totally different categories. Although these are called mobile homes, they are large and can be anchored to the ground like traditional homes.

Palm Terrace mobile home

Lie Number Two:

Land Lease Communities Are Financial Rip Offs.
This one kills me!

Mobile homes on leased land require the owner of the home to pay a monthly fee each month to the park for usage of that land. This is called lot rent. Many times, lot rent covers the usage of the land, the water bill, the sewer bill, trash bill, the usage, upkeep and insurance of all the park amenities, such as the pool, and the residents’ own lawn care. These parks also do not have a CDD fee or an additional HOA payment for residents.

Now, all you negative Nancy’s out there, what do you pay each and every month both the time and money to get all that taken care of?

Lie Number Three:

Mobile Homes Fall Apart So Don’t Ever Buy One.

This one, is just plain foolish!

I have been in mobile homes that were built in the 1960s that were dropped off at the park directly from the factory and have been in much better condition than stick and brick homes built in the 2000s. Like with anything, the way to keep up with your mobile home and having it look nice for decades on end is to keep up with the routine maintenance. If you see something that is having a problem, look to get it inspected and immediately fixed, so you do not have a small problem grow into a huge disaster!

One of the most common myths is that mobile homes are weaker than site-built fixed homes. The reality is the opposite. The additional structure of the mobile home designed for moving is sturdier than that of the site-home home.

We will continue to discuss the routine lies and misunderstandings here in the mobile home space in order to help give you a better idea of what a mobile home is and what a mobile home is not.

Mobile homes are not perfect, I assure you that, but then again, what in life is?

Mobile homes are real homes. They may differ in name and construction but they are built to last like your conventional brick and concrete homes. In fact, there are some advantages to living in a mobile home compared to that in traditional homes. Depending on your lifestyle, living in a mobile home can be affordable. Living in a mobile home park can be quite enjoyable because you are surrounded by people who mostly share similar interests

If you are looking to buy a mobile home don’t listen to these lies that could sway your decision in a bad direction. We at The Mobile Home Dealer always provide expertise and knowledge and educate people like you who want to experience living in mobile homes.

This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.

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January 29, 2024
10 Compelling Reasons to Invest in Mobile Homes
In the dynamic landscape of real estate investment, mobile homes are emerging as a hidden gem, offering a plethora of advantages that make them an attractive option for savvy investors. Whether you are a seasoned investor or a first-timer dipping your toes into the world of real estate, here are ten compelling reasons why you should consider investing in a mobile home.

1. Affordability Breeds Opportunity

One of the most appealing aspects of mobile homes is their affordability. With a lower initial investment compared to traditional houses, mobile homes provide an entry point into real estate for those working with a limited budget. This affordability opens doors for a broader range of investors, fostering inclusivity in the real estate market.

2. Lower Maintenance, Higher Returns

Mobile homes typically come with lower maintenance costs than their traditional counterparts. The simplicity of their design and construction translates to fewer components that can go awry. This advantage makes mobile homes easier to manage and contributes to higher returns on investment as maintenance expenses are kept in check.

3. Quick Returns on Investment (ROI)

Speed is often a critical factor in investment success, and mobile homes offer a pathway to quick returns. Their lower acquisition costs and potentially faster rental turnover mean investors can recoup their initial investment sooner than with traditional real estate. This swift ROI can be particularly appealing for those seeking a more dynamic investment strategy.

4. Rental Income Potential

The demand for affordable housing has never been higher, and mobile homes are positioned to meet this need. Investing in a mobile home park or individual mobile homes provides an opportunity to generate steady rental income. With an increasing number of individuals and families seeking cost-effective housing solutions, the demand for mobile homes as rental properties is on the rise.

5. Flexibility in Location Choices

Unlike traditional homes that are fixed to a specific location, mobile homes offer investors the flexibility to choose their investment location strategically. This flexibility is particularly advantageous when targeting areas with high demand for affordable housing or regions experiencing economic growth.

6. Diversification for Risk Mitigation

Smart investors understand the importance of diversification, and mobile homes present an opportunity to diversify a real estate portfolio. By including mobile homes in a mix of investment properties, investors can spread their risk across different types of assets, providing a safeguard against market fluctuations.

7. Unlocking Tax Benefits

Mobile home investments can come with attractive tax benefits. Similar to traditional real estate, investors may be eligible for deductions on mortgage interest, property taxes, and even depreciation. These tax incentives can significantly contribute to the overall profitability of a mobile home investment.

8. Rising Popularity of Mobile Home Living

Advancements in mobile home design and construction are reshaping perceptions of this housing option. With modern amenities and a focus on energy efficiency, mobile homes are gaining popularity among those seeking an affordable yet comfortable lifestyle. This growing trend can positively impact the resale value of mobile homes, presenting investors with potential appreciation over time.

9. Opportunity for Fix-and-Flip Success

Mobile homes offer a unique avenue for the classic fix-and-flip strategy. Investors can target distressed or outdated mobile homes, renovate them to meet modern standards and sell them at a higher price. This strategy combines the satisfaction of revitalizing a property with the potential for a lucrative return on investment.

10. Potential for Appreciation

While traditional real estate is known for its long-term appreciation, mobile homes in desirable locations can also experience value growth. Investing in mobile homes situated in regions with increasing demand for affordable housing positions investors to benefit from both rental income and potential appreciation.

In conclusion, the world of real estate investment is evolving, and mobile homes are emerging as a viable and lucrative option. From affordability and flexibility to tax benefits and the potential for appreciation, mobile homes present a compelling case for investors looking to diversify their portfolios and unlock new opportunities in the housing market. As with any investment, thorough research and due diligence are crucial, but for those willing to explore the potential of mobile homes, the rewards can be both substantial and satisfying.

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November 30, 2023
8 Lucrative Ways to Make Money with Mobile Homes in Mobile Home Parks
Investing in mobile homes inside existing mobile home parks can be a lucrative opportunity that often goes overlooked by many investors. In this article, we will explore eight ways to make money with mobile homes in these parks. It’s important to note that we are discussing the purchase and sale of the mobile homes themselves, not the land they sit on.

Sarasota Mobile Home for Sale with Wide Carport

1. Buying and Renting

While many mobile home parks may not allow you to rent out mobile homes, there are exceptions. Some parks near military bases or in specific regions may permit renting. In such cases, consider renting the room if it’s financially advantageous, especially for purposes like student housing, transient or migrant housing, or housing for oil workers. Ensure you check with local park managers to understand their rental policies.

Pro Tip: Always clarify your market and make multiple offers to sellers to secure mobile homes at prices below retail.

2. Buying and Selling for Cash

Every day, individuals across the country buy and sell mobile homes for cash. As an active mobile home investor, you should aim to purchase these homes at a price significantly below retail. You can sell them to private buyers or arrange bank financing. The key to success in this strategy is understanding the market and consistently making multiple offers.

3. Buying and Selling via Payments

Some sellers may choose to sell their mobile homes within the park through down payments and monthly payments from tenant-buyers. It’s essential that all buyer-applicants are approved by the park and meet the necessary background/application requirements. Additionally, an interest rate may be applied to the balance being paid.

Pro Tip: Ensure all paperwork and applicants adhere to local and national seller financing rules and guidelines.

4. Wholesaling

Similar to the real estate market, wholesaling mobile homes in mobile home parks involves obtaining a purchase contract for a mobile home and then selling that contract to another investor or end-user buyer for a profit. While the profit margin may not always be substantial, high-demand areas can yield more significant assignment fees.

5. Bird Dogging

As a bird-dog, your role is to help investors find mobile homes for sale that fit their criteria. You identify for-sale-by-owner (FSBO) properties and match them with active mobile home investors. To succeed, it’s crucial to know the specific types and criteria each investor is looking for.

Pro Tip: Your compensation typically depends on closed deals, so ensure your leads are followed up on.

6. Adding Homes to the Community to Resell

Many mobile home parks have vacant spaces for additional homes. Some offer incentive programs for park-approved homeowners who are willing to move in a park-approved mobile home. As an investor, you can find sellers who need their mobile homes relocated and sell them to new buyers. This process can be profitable if you leverage move-in incentive programs.

Pro Tip: When speaking to community managers, inquire about move-in incentive programs and the types of mobile homes the park is willing to accept.

7. Selling Directly to the Park

In cases where you have a more expensive mobile home that must be moved after purchase, consider selling it directly to a local mobile home park. Ensure you understand what each park is looking for in a used mobile home and be prepared to show them pictures for approval. Parks usually pay you before handling the move, permits, and setup themselves.

8. Moving Unwanted Mobile Homes from One Park to Another

Sometimes, mobile home park owners want older or less attractive homes removed from their communities to make room for newer, more profitable homes. If a mobile home still has value, you can help move it to another location for resale or rent. Check with local mobile home movers and permit offices to verify the requirements for moving homes in your area.

The Bottom Line

Investing in mobile homes within mobile home parks offers various ways to generate income. While some strategies may be more realistic and profitable than others, success in this venture requires dedication, market knowledge, and active involvement. Always be aware that the real estate market can be unpredictable, so make informed decisions and take daily actions to achieve your financial goals. If you have questions or need guidance, reach out to experienced investors in the field for assistance. Mobile home investing can be a rewarding journey when approached with diligence and a commitment to learning and growing in the field.

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November 3, 2023
5 Reasons Why Mobile Homes Are Great Investments!
Investing in any type of real estate is all about earning passive income for most investors. With the real estate market’s diverse portfolio, it is one of the hottest destinations for investors who are aiming to put their money in both medium and long-term investments. Having said that, due to the increasing price of conventional homes, small investors are eying the mobile home market.

As prices continue to rise in the real estate market, apartment home rents are near an all-time high, and interest rates for traditional mortgages creep up to levels we have not seen in years one needs to think more about an affordable housing option.

There are many reasons why manufactured homes make great investments. For one, they are much more affordable than traditional stick-built homes, and they can be just as comfortable and stylish. Additionally, mobile homes appreciate at a much faster rate than stick-built homes, so your investment will grow more quickly.

Another big advantage of mobile homes is that they can be moved if you need to relocate. This means that you can take your home with you if you get a new job in a different town or city, or if you simply want to live in a different area. This flexibility is incredibly valuable, and it means that you won’t have to go through the hassle and expense of selling your home and buying another one every time you move.

Finally, mobile homes are much easier to finance than traditional homes. Because they are cheaper and faster to build, lenders are typically more willing to finance mobile homes than traditional homes. This makes it easier for you to get the financing you need to purchase a manufactured home, and it also means that you can get a lower interest rate on your loan.

But, with this thought, does one even exist?!

Mobile home for sale in Florida

The answer, without a doubt, is yes!

Enter the world of mobile homes!

For the longest time mobile homes have been the pillar of affordable housing within the United States and now, more than ever, it stands head and shoulders above all other housing options when looking at affordability and how a Buyer can get the most bang for their housing buck.

Today, we want to discuss with all our readers the 5 reasons why mobile homes in and around the state of Florida are great investments.
1. Affordable
Buying a house like a single-family home requires a considerable amount of money. Mobile homes cost much less. There are mobile homes that cost only a few hundred dollars per month if you’re financing one unit and putting a handsome amount of money on the downpayment.

As mentioned above, with all other housing options skyrocketing throughout the economy where else can one buy their own stand-alone home for the cost of an average used car? Not only that but when buying a mobile home within a mobile home park many parks offer the vast majority of the utilities and maintenance fees associated with owning a home in one payment called lot rent. Here, lot rent will usually cover the residents’ water, sewer, trash, lawn care, and usage of amenities such as the pool, clubhouse, dog parks, and workout facilities.

Where else in this economy can one have high-end amenities all paid for and taken care of for one low monthly fee?!

2. Tangible

When renting an apartment home the rent that is paid each month goes to the landlord or apartment complex. At the end of the rental period, there is nothing to show for this other than a paper invoice.

When owning your own mobile home you, as the owner, have something you can sell to recoup your expenses for living.

3. Easy To Maintain

As discussed in previous blogs, a mobile home has a much different structure than that of a single-family home. Many of the differences are in the wall, flooring, and roof structures.

When something needs to be fixed to one of the major components of a mobile home it is far less expensive to fix than that of a single-family home.

4. Say The Same Price

Most mobile homes do not gain much in value, likewise, they do not lose much in value either. The nice part about this fact is that by having the price stay around the same will help you, as the Buyer, to better estimate the cost of a mobile home when looking to purchase one in the future.

Keeping your costs set when buying a mobile home will help with your budgeting.

5. Cash Purchase

Most mobile home purchases are done within a cash transaction. With cash transactions being the main way how these homes are sold it avoids the extra expenses and time associated with the purchase or sale of a single-family home which normally has a mortgage associated with the ownership of the home.

Cash transactions will help the owner of the home buy or sell the property faster and for less money than a home with a traditional mortgage attached to it.

Sarasota Mobile Home

In addition to the five reasons mentioned above, another reason that many mobile home detractors always ignore is the STEADY DEMAND for mobile homes.

Although the demand for mobile homes can vary from state to state, there is always a steady demand for mobile homes in Sarasota Florida, especially during the winter season when people from the North flock down South to run away from the cold winter

Nonetheless, the data from Manufactured Housing Institute states that:
- 22 million Americans live in mobile homes
- 62% of residents expect to stay in their mobile homes for at least 10 years
- 90% of mobile homeowners are satisfied with their dwelling
These numbers prove that the demand for mobile homes as an affordable housing option cannot be ignored, especially in states like Texas, Florida, Alabama, and Tennessee.

If you are planning to invest in a mobile home and have money to buy, especially cash, don’t listen to naysayers. Mobile homes are here to stay and will only continue to get more popular as more people are looking for cheaper but more comfortable housing options.

When looking at all living situations one can partake in we highly suggest everyone take a long look at owning a mobile home as the cost savings, ease of maintenance, and speed of the transaction are all aspects that put the mobile home option at the top of affordable housing!

This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.

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September 26, 2023
Can Mobile Homes Be Used As Investment Properties?!
It seems like when you turn on any reality TV show that has to do with selling a home or remodeling a home, it always goes back to single-family homes, doesn’t it? Can Mobile Homes Be Used As Investment Properties?!

You know the type of show is I’m referring to you.

For sake of not wanting to mention any specific show on this video, it is safe to say that anyone who has ever a channel surfed over the past decade knows these shows.

One thing that I think is always interesting is that I have personally never seen a show explaining the benefits of investing in mobile homes as investment properties as these shows always focus on that a single-family home or sometimes an apartment complex.

Although apartment buildings and single-family home rentals certainly are the tried and true way to put one’s money in if they are looking at purchasing a piece of real estate for investment purposes, I always ask myself why doesn’t someone do a show about investing in mobile homes on leased land as possible rental properties?

My goal today in this brief video is to give you a very, very basic understanding of mobile homes as investment vehicles when used as rental homes.

First, let’s go over the basics so we are all on the same page about what we are talking about here.

As we have discussed several times in the past, mobile homes on leased land are viewed as and taxed as used vehicles in the state of Florida which means that you do not pay property taxes on the home. We have also discussed in the past that most mobile homes in and around the Gulf Coast of Florida are older than 1976 models which means that it is difficult to obtain a mortgage or loan on them as nearly all pre-owned homes of that age are sold and purchased in cash. We have also discussed lot rent, it is the monthly carrying cost most all parks have which covers the usage of land as well as basic utilities, such as water, sewer, trash, and lawn care. Additionally, we have mentioned in the past that most mobile home parks in the area allow rentals so long as they are either seasonal or annual rentals.

We are all aware of the need for affordable housing options as apartment wait lists are continuing to increase. The apartment rents go up accordingly as well. Buying a single-family home right now as an investment property is just plain bananas with how high the real estate market is swelling at the time of this video.

With all that understood, let’s peel back the onion a little bit here.

Most mobile homes only have lot rent as a monthly carrying cost for the owner that they need to pay each month. Most apartments do not offer to-your-door parking or a lot of times even laundry services within the apartment unit for the base price of the rent. As we all know many people are moving to Florida right now looking for more affordable places to live than ever before. Mobile homes on leased land usually don’t carry debt as we have mentioned which brings down the owners’ liability when looking to rent the property.

With all of these things mentioned, do you see all the immediate needs that mobile home rentals meet right out of the shoot?

Mobile homes on leased land are fantastic investment vehicles for those folks who are looking to invest but do not want to take on debt or get into a bidding war with other investors trying to purchase traditional real estate!

Furthermore, the fix & flip investment strategy usually works great with mobile homes. Let’s say you purchase a mobile home for $10,000 and fix it for $5,000. You can sell it for $25,000. A $10,000 quick profit is not a bad idea especially if you are into a fixer-upper business strategy.

Mobile homes are cheap and in Florida, they are not taxed as real estate. People who can’t afford conventional homes always look into buying mobile homes. Not only that they are easier to manage, mobile homes in Sarasota Florida are mostly located inside mobile home parks that are easily accessible. If you are selective during your buying process, your mobile home can appreciate its value and can build your wealth over time.

Any investment that involves real estate has its pros and cons and investing in a mobile home can also be risky if you are not fully prepared and lack knowledge on how to do it properly. The reward can be greater than your expectations if you do it perfectly

Assuming you are looking to purchase a mobile home to live in, there are a number of pros that may make this type of investment appealing.

For starters, mobile homes are generally much cheaper than traditional stick-built homes, so you will likely have a lower mortgage payment and/or be able to pay cash for your home outright.

Additionally, most mobile home parks offer a sense of community that can be appealing, especially for retirees or those looking for a more affordable lifestyle.

Finally, mobile homes tend to appreciate at a rate similar to traditional homes, so you can expect your investment to grow over time..

We look forward to answering any questions you have on mobile home investing and we will be happy to answer additional questions in the coming weeks through our video series on this topic. Feel free to contact us directly with a specific question or drop a comment and a question in the comments below.

The Mobile Home Dealer are licensed mobile home broker in Sarasota Florida and the surrounding areas. We provide professional buy and/or sell assistance to our clients. If you have any questions, please contact us by clicking this link. You may also visit our Facebook Page and send us a message.

This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.

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September 25, 2023