Hello fellow MHP members,
I’ve been lurking for awhile. Read most of the posts and am learning a lot.
The idea of renting land, versus a home to people definitely intrigues me. “Can’t hurt dirt” is a phrase I saw mentioned somewhere and I love that idea. My dad is absolutely against mobiles and thinks the answer is in SFH of which I believe he has around 25 to 30 properties. My question to the group is, of those who have invested in SFH, are you still in it? Either way please explain why or why not.
My initial thoughts are to buy a few SFH, get them paid off and use the equity to invest into a park. Is this feasible, or is there a faster and more profitable game plan?
SFH are cheap around here. Can be had in the low 20’s and up. Some are fixers, some are ready to move in. My only hesitation (at this point) in being a SFH landlord is the tenants. I observe my dad renting to pretty much the first person that shows interest, then he spends a lot of time repairing properties that get trashed & vandalized. I fail to see how he can have any equity when he is always picking up after people. Last repair job was in excess of $12,000.
I believe his number one problem is lack of screening for decent people. Obviously if I get into SFH or any rental property, that I would do a better job of screening. It’s just that fear in the back of my mind of getting taken by a con artist.
Perhaps jumping too far ahead, but I have a question on parks. Are they usually under one loan, and is it considered a mortgage? From what I understand thus far it would be, and that’s another thing that intrigues me, one mortgage payment, yet having multiple payments coming in to cover it, versus 20 SFH and 20 mortgages. A few stop paying rent and more than likely find the landlord is screwed.
Hope to learn much more as I go along and eventually get myself into some income producing deals!