The first word of a “mobile home” is not a very accurate description of these homes. In fact, to move a mobile home, have it set up, utilities hooked up to the home, stairs moved/built, and skirting installed, you are looking at upwards of $5,000 and that’s just for a single wide. In other words, they can be “mobile” but not until a lot of money and hassle has been put in.
With that said, in my state, they are considered personal property and are treated like cars where the transfer of the title takes place at the Department of Motor Vehicles (DMV). It costs us $15 for each title transfer (very cheap, especially if you only invest in mobile homes.)
For us we still have to go through a closing with an attorney first (South Carolina does not allow title companies) because we are buying the land as well as the mobile home so our transfer costs are typically between $400 and $700.
You may be wondering: “What good does this do?” The main benefit that we have seen is in the lowering of property taxes.
First, let me give a quick case study of the property taxes in my state (South Carolina) to illustrate how the local government here has burdened investors with taxes:
I purchased my personal residence in Summer 2012 that happened to be bank-owned. The previous owner had moved out of state and apparently couldn’t keep up with the mortgage. Keep in mind that they were no longer claiming this home as their personal residence. The property taxes for the previous owner in 2011 were around $2,900 with a tax-assessed value around …read more