How to Buy a Rental House Trailer
House trailers, also called manufactured homes, are a profitable real estate investment. Most landlords don't have a problem renting out a house trailer or finding tenants. Trailers can be set up on private land or in a park and can be new trailers or used trailers. Here are some tips to help you buy a house trailer to rent.
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Instructions
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Buying New
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Do your homework before committing to buy a new house trailer. Shop at different mobile home dealers and manufacturers online. Find out the basics needed for the house trailer to be used as a rental. Compare the prices and sizes of the house trailer to get a good idea of value for each feature.
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Determine what features your house trailer needs to be a profitable rental. Necessary features in new house trailers will include central heat and air conditioning, appliances including washer and dryer and good quality flooring. You will probably save money by either offering the house trailer unfurnished, or furnishing it yourself. Many rental trailers are unfurnished because tenants have their own furniture to use.
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Contact a mobile home manufacturer to find out if you can buy a "bare bones" house trailer. Bare bones house trailers will save you the most money but some manufacturers will sell only to dealers. If that's the case, ask the dealer about "bare bones" house trailers. A bare bone house trailer is a good way to start rentals; you can add the necessary features you want at your own price.
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Take your list with you when you visit a mobile home dealer. You should be educated about basic prices and features available. Ask about financing, which can be difficult when buying only a house trailer without land. Most states consider house trailers personal property, like a car. This can make financing difficult at times.
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Get everything in writing when making the deal. Make sure that taxes and insurance are covered, as well as local licensing requirements and warranties. Find out if set up and delivery are included in the sales price. Make sure all financial information is disclosed and understood before signing a sales contract.
Buying Used
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Ask the seller basic questions before you make an appointment to see the house trailer. Many house trailers for sale are currently rental properties and arrangements must be made with the renter to view the trailer. Save yourself and the seller time by asking about the age, size, price and condition of the house trailer. Find out how many bedrooms and baths there are, if appliances are included in the price and the condition of mechanical systems and the roof.
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Inspect the used house trailer thoroughly before you sign a contract. Hire a home inspector if possible, but be aware that used trailer homes may be beyond his scope of expertise. If the house trailer is currently being used as a rental, ask the renter about any problems, like a leaky roof, heating, plumbing or electric problems. Make a list of repairs needed to the house trailer before it's suitable for you to rent out.
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Determine the total cost for repairs and materials, taxes, insurance, licenses, and set up and delivery. If you are an experienced do it yourselfer, you can probably do most of the repairs yourself. However, many old house trailers, built before 1976, have inadequate wiring and will need to be upgraded to code by a licensed electrician.
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Make a written offer on an official sales document. These sales documents are available online or at your local business store. Make sure that everything is spelled out, and that both the buyer and seller sign and date the sales agreement. For the protection of both the buyer and seller, it's best to have the sales document notarized with two copies each for the buyer and seller.
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Tips & Warnings
House trailers that will be used for rentals are easier to finance because they are income producing.
House trailers on private property are easier to finance because the land is actual real estate.
