Do you want to diversify your real estate portfolio? Investing in mobile homes in Detroit is a great way to do it! Learn more about what to look for and how to get started with mobile home investment in our latest post!
Mobile homes are often overlooked by investors because they don’t typically pull in the profits that other types of investments do. Rent is lower as is the resell price. That said because there is less competition, mobile homes are much easier to acquire. Once you know your market and become familiar with the mobile home parks in Detroit, finding the right mobile home is easy. Keep reading to learn more about mobile home investing and how we can help you with the process!
Many investors will begin their investment journey by investing in mobile homes to build their portfolio. In some cases, for only a few thousand dollar investment, an investor can quickly acquire an income-producing asset that will help them build wealth, credit, and equity. A smaller property means less to maintain, less to break, and less to repair. Overall, your costs will be considerably lower when buying a mobile home vs. other types of investment property. It is a great way to get started in real estate and is often used as a vehicle for investors to build a strong and profitable portfolio over time. With its low costs, almost anyone can get started in real estate investment.
Finding The Right Tenants
As you begin investing in mobile homes in Detroit, you will need to be able to find the right tenants for the properties. When you advertise well and appeal to the right people, it can usually be pretty easy to get someone in. Many people are loving the smaller home trend and are looking for ways to downsize. Others are simply looking for an affordable and economical investment that will offer them a great place to live without breaking the bank. By buying a mobile home within one of the beautiful Detroit mobile home parts, you can rest assured that you are purchasing an income-producing asset that will serve you for years to come.
You’ll Have Unique Expenses
When investing in mobile homes in Detroit, your costs will be different than that of a single-family investor. You will have different repairs for things like siding and other items not found in a single-family home. You will also have to pay lot rent if the mobile home isn’t located on private property. Owning a mobile home in a park will cost you in lot rent, however, you can always count on the grounds being maintained and several amenities being offered depending on where you are located. That said, your overall costs will be much lower for a mobile home than they are for a single-family property. Every investment comes with a cost, and the costs of mobile home ownership are much lower than other types of investment properties in Detroit!
To Own The Land Or Not Own The Land
While some people only buy and sell mobile homes within parks or on leased land, others will focus on mobile homes that are located on land they own. Both ways of mobile home investment have their perks and drawbacks, it depends on the type of mobile home investment you are ready to make. In some cases, the land may be worth more than the mobile home itself. This means you could quickly build a single-family home on the land and sell it for an incredible profit.
Many investors take owning a mobile home one step further. Some are acquiring the land underneath their property by investing in the entire mobile home park. Owning a mobile home park is a great way to generate income simply for owning land. With low-overhead and relative ease of ownership, investing in mobile home parks can be a great way to generate wealth.
Running The Numbers
Your mobile home investment needs to make sense. You’ll need to make sure you are charging enough rent so that your bills on the property are covered. That said, you don’t want to price too high, eliminating potential tenants from being able to rent the property from you. You should decide if you are going to buy a mobile home new or used and if you plan on flipping or holding long-term. There are many costs and expenses to factor in. Be sure to run al of these numbers before you buy so that you know exactly what you are getting into. Working with We Buy Houses in Detroit will help you find the perfect mobile home and get a clear picture of the costs to expect when buying a mobile home in Detroit.