Dear Stephanie: Adding rental income through additional mobile homes
No one does chattle loans to buy mobile homes any more. I’d like to add more mobile homes for lease to my park but after running my financials at this point I don’t have the extra cash in the budget. Also, the market for quality used mobile homes seems tapped out at this time. Adding the rental income through additional mobile homes would significantly add to my bottom line over the next five years. What do you suggest I look into?
- ChattleShocked in Charlotte
The good news is that today there are companies who offer programs for park owners to buy new homes with little to no initial cash outlay. These programs typically offer a 12 month window where a retail buyer will be able to qualify for financing with less than perfect credit at a favorable interest rate (sometimes as low as 4.5%!) However, this type of financing isn’t without certain requirements, one of which is that you must sell the home by or before 12 months after your acquisition. Other requirements include the park owner must be a licensed dealer for mobile homes and the owner is required to pay an interest rate buy down once the home is sold. The buy down can be paid over time, so if done correctly it is a net profit for the park owner from day one. The park owner must have a reliable customer base with the desire and means to buy a new home. This could be a great alternative for you to look into!
Please contact me with your toughest MHP questions at firstname.lastname@example.org. Remember, if you've wondered it someone else has too! Ask!