Are you enamored with the idea of mobile home investing? Maybe you heard something about it in an article or podcast. Wherever you are in your investing journey, we believe that it will prove helpful to take a look at some of the most frequently asked questions.
And of course, we have answers to those questions.
Passive income FAQ
So are mobile homes a good way to generate passive income? That question will spearhead today’s article. Then, we’ll go ahead and spiral into some related questions on the topic.
As an investor in the making, it’s appropriate that you would want to understand the ins and outs of the trade. We hope to make the way a little easier for you through this collection of frequently asked questions.
Knowledge may not be everything but it certainly gives you a leg up in the climb for success.
Mobile homes and passive income
Back to the question that brought us here: Are mobile homes a good way to generate passive income?
Passive income, as opposed to active income, doesn’t require much effort to maintain on a day to day basis. Rental income is an example of this. It’s great because as you work at other tasks or goals, passive income is at work for you.
Mobile homes and mobile home parks can be a great way to generate passive income. See Danny Burbol’s story for a real-life example of how one person went from being a 9 to 5 employee to enjoying the fruits of passive income through real estate.
In Burbol’s example, he shares how his initial investment is usually about $10k to $15k. After rehabbing the mobile homes, he sells them for around $35k. That’s a fantastic return on investment.
Mobile home park vs. traditional real estate
Now that we’ve tackled the passive income question, here’s our next query. Is owning a mobile home park more profitable than owning traditional real estate? In relation to traditional real estate, owning a mobile home park (or flipping one) provides a bigger return. It will cost much less to get into than going into a neighborhood or apartment complex. Additionally, a park relies on multiple tenants rather than on one (that is, if you’re contrasting it with a single home that you own and rent out).
There is also the lot to be considered — even if the mobile home is owned by the resident, the lot is yours. Thus you can bring in rent money from the lot on which a tenant’s home sits. And, of course, if you own the home and the resident rents it from you, you’ll be receiving income from rent payments.
Finding investment mobile homes
Here’s another question you may be mulling over. How does one find a mobile home for investment purposes?
There are various ways to go about this. You may put out ads offering to buy mobile homes. Additionally, you can scour the classifieds and online sales listings for used mobile homes. Don’t be afraid to make offers — you never know what you might be able to pick up.
Incoming and outgoing money questions
How much money should one expect to spend on a mobile home? And how do mobile homes make money?
How much money you’ll spend and how much money you’ll make will vary based on various factors. In the example of Burbol, he’s spending $10k to acquire a mobile home. In the example provided by bizfluent.com, the investor is acquiring a $20k mobile home then pouring another $20k into it, meaning he needs around $40k to make the investment. Note that the writer suggests that the home may sell for $65k, netting $15k in profit. Not bad!
Used vs. new mobile homes
Should I invest in brand new or used mobile homes? For the purpose of investing, it’s best to buy used mobile homes. You can buy a used mobile home at a bargain price and fix it up to flip, making more money than you would have with a new mobile home.
Find answers for your questions
You asked, “Are mobile homes a good way to generate passive income?”
We answered with a resounding “Yes.”
Do you have more questions? Keep up with EZ Homes!
Learn more from EZ Homes
There’s more to learn on the topic of generating income through mobile homes. We hope this article gave you some helpful insight. As you continue to navigate the waters of mobile home investing, we trust you’ll find a wealth of knowledge in our resources. (For example, see the pros and cons of owning a mobile home park.)
EZ Homes is here to serve — seeing our readers succeed makes our day.
Standing at the start of a new year, our hope is that your goals will be met with determination and much success. Investing isn’t easy. It requires work but once you start seeing the reward of your labors, you’ll be glad for that passive income. Happy investing!