Even if a property doesn't have much appreciation, it rarely loses value over time. Investing in mobile homes has become a highly lucrative practice in the housing industry and with good reason. I started buying investment properties in the 1980s. Older mobile homes will be hard to sell, and as an investor, you need to study the market wisely before you make any plans. The biggest disadvantage of mobile homes is the fact that they depreciate, and at a rapid rate too. There are millions of people living in mobile homes in the country, and the numbers are growing daily as people look for the most affordable housing. It is far less expensive to do these repairs after you purchase the property, than to pay a house flipper for doing them for you before the purchase. However, since mobile homes can be purchased so inexpensively, you can often buy them without needing bank financing. The park landlord doesn't have the capital invested into the structure and doesn't have the responsibility to maintain the home, so they don't have as many costs to cover. With some legwork, somebody can start investing in mobile homes for under $5,000. There is a fundamental difference between a trailer park and a mobile home park and the people on each type of site behave very differently from each other.A trailer park is a scenario where a tenant could hook up their trailer and simply drive off into the night almost as and when they please, which would present a problem if they owed rent and other bills.Residents in a mobile home park and living in a mobile home are in fact most … This is what I have discovered over the years: Buying Site-Built Homes Above The Median Price For The Area, Buying Site-Built Homes Below The Median Price For The Area. Lot rent usually includes water, sewer, and use of the private road and common areas. Millionacres does not cover all offers on the market. Having good contractors that you trust and have worked with many times can be a life saver when it comes to investment properties. As can be seen from the table above, mobile homes can offer an overall better total rate of return than a site built home. If you own the mobile home, it's likely you'll be responsible for the lot rent. If you decide to buy used, you get even more potential savings by purchasing a fixer-upper. While these are not to deter you from embarking on your investment, it is always good to know what you’re is getting yourself into. This Site is affiliated with CMI Marketing, Inc., d/b/a CafeMedia (“CafeMedia”) for the purposes of placing advertising on the Site, and CafeMedia will collect and use certain data for advertising purposes. With such little financing options, it will be hard for you to get a lot of money together. Renting mobile homes has the potential to provide significant cash flow if you have the appetite for the risk. In our real estate business, we often work with investors who are afraid of investing in mobile homes; even with the higher rates of return that mobile homes offer. One of the most attractive things about renting mobile homes is that they cost very little compared to other property types. Lot rent is what mobile home owners pay for the piece of land the home is parked on. Contact property managers of local mobile home parks to see how they handle rental situations, or if the park rules even allow them at all. If you are looking to cash in big and have massive paydays then this is not the investment for you, especially if you are looking to profit off of “flipping” mobile homes. You'll rarely ever sell a mobile home for as much as you've put into it. These tenants often have limited options when it comes to finding a property that will fit with their needs and lifestyle, keeping them in the property for much longer than usual. The parts are transported to a site, assembled together, and then connected to sanitary, water, and power systems. Mobile homes can be especially profitable, but you have to make sure you purchase the home for the right price. Of course, there are some significant differences between renting mobile homes and other rental properties. Real Estate Investing: 10 Ways to Build Wealth.