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The Only People Getting Rich Renting Mobile Home Parks Are Tenants and Maintenance Men

Guest post by: Dave Reynolds

Article Overview: There are a lot of books out there extolling the financial benefits of buying mobile homes for purposes of renting them out. DON'T BE SUCKERED INTO THIS WITHOUT GETTING THE FULL STORY. These books generally leave out three important problems that turn any proposed economics into bankruptcy.

The Only People Getting Rich Renting Mobile Home Parks Are Tenants and Maintenance Men

There are a lot of books out there extolling the financial benefits of buying mobile homes for purposes of renting them out. DON'T BE SUCKERED INTO THIS WITHOUT GETTING THE FULL STORY. These books generally leave out three important problems that turn any proposed economics into bankruptcy.

They are:

• Tenants will trash the property and steal appliances (including furnaces and air-conditioners) on just about every rental, and the cost to repair will exceed your gross rent
• Tenants will never pay their rent on time, and will require a costly eviction and writ of execution to get them out for only a few short months.
• Mobile homes make for lousy rental properties because they are too flimsily constructed. Who ever heard of 1" x2" framing? Go to a factory and see for yourself how they're built. A 10 year old can rip a door off its hinges

So what does this mean? It means that any revenue you take in will immediately go back out the door (and then some) in repairs and make-ready, and legal fees.

Don't believe us? Look at the financial statements of those publicly held REITs that rent mobile homes and see how impressive those numbers are. Or talk to someone who has already made such an investment and see how they're doing. You'll soon get the accurate picture.

I once had a guy come up to me at eviction in court, out in the hallway. This guy liked to go around and buy properties this way, hoping that disgusted landlords would sell them cheap, and he would then throw them into his slumlord empire. I told him my properties were mobile homes, not stick-built houses. He looked at me and said "I don't deal in that junk; there's no money in it!" That's the most accurate analysis I've heard (unless you own the park).

So why do they sell such books? Because everyone wants to believe that there is a great rich quick scheme out there, even when they know it sounds too good to be true.

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Article Tags: bankruptcy, economics, maintenance men, mobile home parks, mobile homes
Referred by: http://www.mrlaundromat.com/



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