Buying Mobile Homes For Investment In Indianapolis
It is a niche that is often ignored by real estate investors. Buying mobile homes for investment purposes can lead to some surprisingly large returns. Learn more about mobile home investment in our latest post!
Mobile home investment can be a great way to start or diversify a real estate portfolio with the need for affordable housing, the trend of living in a small home, and the reduced risk involved. The benefits of mobile home investment are beginning to be seen by real estate investors throughout the country. Keep reading to learn more about how to find the right mobile home and how to successfully generate an income from it!
Finding The Right Property
When you set out to invest in Indianapolis for a mobile home, you’ll know what to prepare for and what to watch out for. You’re going to want to decide how big a property you want to purchase and the age of the mobile home you’re going to buy. Some older mobile homes are well maintained, but sticking to newer manufactured homes is often better.
Finding The Right Lot
Some owners own the land, while others do not own their mobile home. If you buy a mobile home with the land, you need to prepare for a higher purchase price. The advantage of buying the land is that over time the land will appreciate. If you are buying a property on a leased space within a mobile home park, make sure you are familiar with the park ordinances, rules, and regulations. If possible, get to know the park manager so you can better understand how the park is running. To attract the right tenants, you will need to choose the right park. Walk around several parks and talk to residents. Even at night and on weekends, you can drive the park to see if it’s loud and bustling, or quiet and peaceful.
Finding The Right Tenants
Just as you’d screen tenants for a single-family house or rental apartment, it’s important to screen your Indianapolis mobile home carefully for potential tenants. If necessary, perform background and credit checks to ensure that you allow the right people to move into the home. This step is outsourced by many landlords to professional screening companies. The cost upfront can save you thousands over the long-term. With more and more Americans looking for affordable housing, the perception of mobile homes is changing. People choose to spend their money on experiences vs. stuff, so it makes sense for many people to have a smaller home. You don’t need a large space to have a beautiful home as the small home trend continues to prove. More and more tenants in today’s market are opening their minds to the idea of living in a rental mobile home.
Different Types of Repairs
As the owner of a mobile home, the repairs you have to face will be much different than those of a single-family home or apartment. Typically, as long as you work with qualified contractors who know what they are doing, your repair bills will be much less. Some things you should pay attention to include holes in the siding or roof that will damage the property by causing water. Also, always make sure the skirting around the property is in good shape, without damage. The skirting wraps around the home, covering the space between the floor of the mobile home and the ground. Damaged skirting can lead to water damage and pest problems. Another thing to look out for is floor damage. A common problem for mobile homeowners is soft spots leading to holes in the floor. Be sure to perform a maintenance check annually to ensure the property is safe and to catch any maintenance problems before they become bigger problems. Also, make it clear to your tenants that if there’s ever any problem they can come to you.
Buying mobile homes in bulk would be a few things you can do to capitalize on mobile home investment in Indianapolis. Or you can purchase multiple properties in one park slowly. This will facilitate repairs and inspections if all of your investments are in one place. Just make sure you have a good relationship with the park manager, you don’t want to have to work with someone you are constantly bumping heads with. Another common venture for mobile home investors is to invest in the mobile home parks themselves! This is the next step for many mobile home investors in the Indianapolis area with low overhead and a consistent income stream.