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Have you been thinking about a mobile home as a way to generate additional income? If so, you’re not alone.

Every year, we at Buy My Mobile Home DFW entertain hundreds of clients who think mobile homes are wise investments. Our listings are home to thousands of people looking for the best way to sell their mobile homes in Dallas, TX. We also oversee hundreds of auctions where people engage in bidding wars to buy a mobile home they’ve been dreaming of for a cost-effective price.

People who want to buy a Dallas home quickly but don’t have the money to make a down payment on a house also come to our marketplace. With a bit of financial education, you can provide them with a cost-efficient shelter by turning your mobile home into an income-generating investment.

If you’re planning to buy manufactured homes to use as a rental property, here are some things you should consider:

The Difference Between Personal Property and Real Property

Before buying a new mobile home, review your local state laws. Some states consider mobile homes to be real estate investments, while some see them as mere cars with extra amenities.

U.S. law categorizes a car as personal property and real estate as real property. The two come with different taxation structures.

If you own a mobile or manufactured home and you’re renting the ground it stands on, the state of Texas considers it personal property under the Texas Title Insurance Code Art. 9.02 and 9.07. However, in many other states, you may have to pay real property taxes.

How Do You Turn Your Mobile Home into a Commercial Investment?

Unless you own the land beneath your mobile home, you’ll have to charge your tenant for two things: lot rent and mobile home rent.

Real estate companies and brokers have ignored the mobile home rental market for decades, so you shouldn’t expect much competition. Mobile homes can function similarly to low-cost single-family housing with some depreciation and maintenance costs on top.

If you own the lot, you’ll have two income streams that will help you recoup its cost. If only the mobile home belongs to you, the lot rental money will go to the owner of the RV park. Lot rent will allow your tenants to use the sewer and water lines of the RV park, as well as its common areas and private roads.

The Pros and Cons

Mobile home rentals are known for their:

However, keep in mind that:

Invest in Mobile Homes With Help From the Experts

Whether you’re looking to buy a manufactured home or you’re hoping to sell one, come to our experts at Buy My Mobile Home DFW for expert advice. We can make you a fair offer within 24 hours, and most of our clients enjoy a brand-new cash infusion within seven days.

Call us today at (866) 306-1074 and let our professionals turn your mobile home into a profitable investment.