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Another property you can invest in is mobile homes or mobile home parks, which is interesting. 🏠🚗
So, what is a mobile home? It's a home that it's usually a trailer type home. So what happens is you buy the unit and you put it on leased land or you put it on the lot. You put it on a lot in a mobile home park. These are parks that are designated for mobile homes and they have services like water and electricity at each one of those lots. 💰🏠🌳
The big advantage of owning a mobile home is it's cheap.
You can buy a mobile home cheaply. I have seen them for sale for $3,000, $10,000, $20,000. A home in the same area might start in around $70,000 to $100,000 or they could go up to $300,000, even though the mobile homes are only $30,000.💲🏠🚗
Why people want to rent mobile homes is because the rents are also cheaper.
Instead of paying $1,000 a month for rent, a mobile home could be only $600 a month. 🏠💰⏳
The disadvantage of mobile homes is that you are usually renting to people that can't afford to rent a house. So you're usually renting to, and I hate to say it, but “problem” people. There is a negative stigma associated with people who live in mobile homes. They are people that don't really care about their things and you can see that in some mobile home parks. They even call these people “trailer trash”. 🧍♂️🏠🚗🗑️
The one interesting advantage of a mobile home purchase is you can recover your expenses right away, or you can recover your costs right away. 🏠🚗💲⤴️
For example, let's say you purchased a mobile home for $5,000, and I've seen that. If you rent it out to somebody for $500, you are recovering the cost of that investment in as little as 1 year. You can actually pay off your full investment in a year. 💰🏠⏳
Theoretically, you say, well, I don't really care what happens to the property after that. I'm just going to rent it out and I'm going to make any additional income because now I own this property free and clear. I mean, there are some expenses in there. Because you've got to pay the mobile home park fees, the lot fees. 🏠➕🤑📈
What some people do too, is they actually buy the whole park, which is another strategy altogether. I've seen people do that, you know? So you go in, and you buy a park which has got 200 or 300 units in it. So it's like buying a large apartment building or a multifamily home. So it’s an exciting investment, purchasing a mobile home park. 🌳🏘️👨👩👧👦