Posted by Richard Roop on May 18, 1999 at 09:33:11:
First, I would not do it without inspecting the property and meeting with the park manager. The seller needs the park manager’s permission in writing to rent the home and you will need permission to sublet the home. You and your buyer will need to apply for park lot rent.
The biggest problem with mobile homes is financing. I buy mobile homes real cheap for cash and then sell with owner carry financing. Under a lease option, you are relying on your buyer to get financing down the road which may be tough.
Based on what you shared, the only deal is to buy it cheap with owner terms and then resell at full value on a rent-to-own and/or with owner financing.
Personally, I have never bought a mobile for more than $6,000 cash which was in a park. I did lease option one once in a park (one of my first deals 3 years ago). Seller owed $55,000. I sold it for $67,000 on a rent-to-own. I got $3,500 purchase deposit and a $100 a month cash flow for 12 months. Then, my tenant/buyers did not qualify for a loan, broke up, and moved out. I did not renew my lease and gave it back to the owner who was filing bankruptcy.
I made money but I would not of done it out of my area and I rather do it on single family homes.
With mobile homes, it is hard to get enough money down to protect yourself…unless it is on land.