It is a niche that is often ignored by real estate investors. Buying mobile homes for investment purposes can lead to some surprisingly large returns. Learn more about mobile home investment in our latest post!
With the need for affordable housing, the trend of living in a small home, and the lowered risk involved, mobile home investment can be a great way to begin or diversify a real estate portfolio. Real estate investors all over the country are beginning to see the benefits of mobile home investment. Keep reading to learn more about how to find the right mobile home and how to successfully generate an income from it!
Finding The Right Property
When setting out to make a mobile home investment in Chicago, you’ll what to be prepared and know what to watch out for. You will want to decide how large of a property you wish to buy and the age of the mobile home you will be willing to purchase. Some older mobile homes are beautifully maintained, however it is often better to stick to newer manufactured homes.
Finding The Right Lot
Some owners own the land their mobile home sits on, while others do not. If you are buying a mobile home along with the land, you will obviously need to prepare for a higher purchase price. The benefit of buying the land as well is that the land will appreciate over time. If you are buying a property on a leased space within a mobile home park, make sure you are familiar with the park ordinances, rules, and regulations. Get to know the park manager if possible so you can better gauge how the park is run. You’ll need to choose the right park in order to attract the right tenants. Tour several parks, walk around, and talk to residents. You can even drive the park at night and on the weekend to see if it is loud and bustling, or peaceful and quiet.
Finding The Right Tenants
Just like you would screen tenants for a single-family house or an apartment rental, it is important to carefully screen potential tenants for your mobile home in Chicago. Perform background and credit checks as necessary to make sure you are letting the right people move into the home. Many landlords outsource this step to professional screening companies. The cost upfront can save you thousands over the long-term. With more and more Americans looking for affordable housing, the perception of mobile homes is changing. People are choosing to spend their money on experiences vs. stuff, so having a smaller home simply makes sense for many people. As the small home trend continues to prove, you don’t need a large space to have a beautiful home. In today’s market, more and more tenants are opening their minds to the idea of living in a mobile home rental.
Different Types of Repairs
As the owner of a mobile home, the repairs you have to face will be much different than those of a single-family home or apartment. Typically, your repair bills will be much less as long as you are working with qualified contractors who know what they are doing. Some things you should watch out for include holes in the siding or roof which will cause water damage to the property. You should also always make sure that the skirting around the property is in good shape, without any damage. The skirting wraps around the home, covering the space between the floor of the mobile home and the ground. Damaged skirting can lead to water damage and pest problems. Another thing to watch out for is damage to the flooring. Soft spots leading to holes in the floor are a common problem for mobile homeowners. To ensure the property is safe and to catch any maintenance problems before they become larger issues, be sure to do a maintenance check annually. Also, make it clear to your tenants that they can come to you if there is ever any problem.
Bonus Tips
A few things you can do to capitalize on mobile home investment in Chicago would be to purchase mobile homes in bulk. Or you can slowly acquire multiple properties within one park. This will make repairs and inspections easier if your investments are all in one place. Just make sure you have a good relationship with the park manager, you don’t want to have to work with someone you are constantly bumping heads with. Another venture common to mobile home investors is to eventually move on to investing in the mobile home parks themselves! With low overhead and a consistent income stream, this is the next step for many mobile home investors in the Chicago area.