Mobile homes can be a great investment, and they can also be a good way to make money without doing anything. Here, we’ve given you a detailed look at the benefits of mobile home parks. In the past few years, investing in rentals in Pendleton, Oregon, has become more popular. Many investors don’t think of mobile homes as investments, but many investors know that commercial mobile home parks can be a good way to make money.
A mobile home is a place to live, like a single-family home or a property with more than one unit. Like a house or apartment, a mobile home must be paid for. Mobile homes are very different from other places to rent.
Are Mobile Homes Classified as Real Estate?
Most of the time, mobile homes and the land they sit on are considered real estate. But sometimes, the house itself is thought of as personal property.
Real property is governed by distinct laws in each state than personal property. The majority of jurisdictions presume that the renter of a mobile home also owns the land on which it resides. However, the law states that mobile homes and the land on which they reside are distinct entities.
In states with a tangible property tax, the amount of property taxes needed may depend on whether a mobile home is considered personal or real property. When a mobile home is put on land, it is considered private property, and the owner has to pay a real property tax. When the mobile home is on the land and a property assessment is done, a personal property tax is put on both the house and the land.
When Oregon home rentals are used, the IRS treats them as such. Depreciation schedules for residential rental properties are also set to last 27.5 years.
Trailer Homes vs. Mobile Homes
Most people call a trailer home a “mobile home,” but there is a difference between the two. Mobile homes on wheels that you can rent are called trailers. On the other hand, most mobile homes are made of brick, which is more durable. But because the foundation is stronger, moving them is hard and expensive.
Why Investing in Mobile Homes Is a Good Idea
Because the initial cost of a mobile home is low, the return on investment (ROI) is also higher. As the investment grows, so will the return on investment.
For example, let’s say you buy a mobile home for $2,000 and, after paying for it, only make $100 per month. That would give you a return on your money of 60%.
It’s Cheaper to Build
It costs less to put a mobile home on empty land than to build a house. There is one exception to this rule. You will need to check the local laws to see if you can put a mobile home on the property.
One Last Thing
Those who are willing to take risks can make money with rental homes in Oregon. Before investing in a company, you should spend time learning about it, talking to other investors, and working with your accountant. To buy real estate, you might want to start with mobile homes.