| Why mobile home rentals? Get past the
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| | home rentals on land might appreciate
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| prejudice and look at the numbers. In our
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| | more slowly than the "regular" house, but
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| town, for example, a two bedroom house
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| | faster loan pay-down usually covers this
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| costs $130,000 and rents for $800/month.
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| | factor. Pay less per month, have positive
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| A $50,000 mobile home on real estate gets
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| | instead of negative cash flow, and build
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| $500/month. Cash-on-cash return on
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| | more equity! Don't expect your real
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| investment is obviously higher with
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| | estate agent to tell you this.Mobile
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| mobile homes.Don't let the half-truth
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| | Homes - Cash FlowIn the example, you'd
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| that mobiles depreciate in value keep you
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| | lose about $150/month on the house, after
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| from investing in them. They lose value
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| | the payment, taxes, insurance, repairs
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| in a park, on a rented lot, but not on
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| | and other expenses. You'd have cash flow
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| real estate. My first home was a mobile,
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| | with the mobile home, and after ten years
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| bought for $19,000 and sold for $45,000
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| | (when the loan is paid off), you'd have a
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| fourteen years later.House rentals here
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| | lot of cash flow.Mobiles are cheap to
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| usually have negative cash flow, while
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| | maintain. The furnace died in rental I
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| mobile home rentals have some cash flow.
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| | owned, and I replaced it for $1,200, much
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| Still, investors prefer houses, believing
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| | less than a furnace for a larger home.
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| they'll build equity faster, but is that
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| | For $200 you can have the roof tarred,
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| true? Only during times of fast
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| | instead of $5,000 to re-shingle a
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| appreciation.Equity Building With Mobile
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| | traditional roof. Windows, plumbing,
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| Home RentalsBuy a house for $120,00 with
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| | doors - they're all cheaper. Property
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| $20,000 down, and take out a $100,000,
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| | taxes and insurance are less too (be sure
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| 6%, 30-year mortgage. You'll have a
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| | you can get insurance, since some old
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| payment of $599.60. Of the first payment,
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| | mobiles may be uninsurable).The Bottom
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| $500 will go to interest, and $99.60 to
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| | Line$20,000 can buy two mobiles, with
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| principal. You only built equity of
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| | $10,000 down on each, or four with $5,000
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| $99.60. This ignores appreciation, but
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| | down on each, instead of one
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| only for the moment.Second scenario: Find
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| | negative-cash-flow house. The two
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| a mobile home for sale on land, and
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| | investors in our town that own most of
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| borrow $30,000, at 8%, amortised over 10
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| | the mobile homes always have cash flow,
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| years. Higher interest and a shorter term
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| | and have built millions in equity.
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| is normal with mobiles, but being done
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| | Others, following their prejudices,
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| with payments in 10 years instead of 30
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| | struggle to make money with their "nice"
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| sn't all bad. The payment will be
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| | rental homes. So when you're looking for
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| $363.99. The first month, $200 will go to
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| | a good investment, don't forget those
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| interest, and $163.99 to principal. You
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| | mobile home rentals.Steve Gillman has
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| built more equity in this scenario.Mobile
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| | invested in real estate for years.
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