Last time I discussed the cash flow and economic advantages of these mobile home and land properties over their site-built counterparts. Hopefully, you didn’t find these too painfully boring and elementary. I will attempt to give you at least a couple of takeaways with this post on repairs.
Repairs and Mobile Home Investing
Repairs tend to be easier for mobile homes over site-built homes. I contribute this to the similarity of the way each mobile home is built and subsequently the similarity of the problems from home to home. Your tenant’s/buyer’s expectations for mobile homes seem to be much lower as well, allowing you to get away with more cosmetic issues.
Typically we buy mobile homes that are 10 to 20 years old. Most have been REOs while the rest have been from burned-out landlords. They have all shared a common theme of being vacant for some time, usually 6-12 months.
With vacancy comes theft. We have had to replace at least 75% of the outside central A/C units, which is one of the first things to be stolen, especially in rural areas like ours. (This is where a relationship with a good A/C guy is very important. Our guy can install a working, used outside unit for $800 to $1,500, depending on the size needed.)
Typically the floors need some work. As I mentioned in a previous post, we sell our homes on rent-to-owns so we offer repair credits upfront to entice the tenant-buyer to do the work themselves. This works great, especially when carpet is stained but the sub-floor is in good shape. When the sub-floor has …read more