Buying mobile homes in Chicago can help you to rapidly grow your portfolio. While the average investor may never have given much consideration to mobile homes, they can actually serve quite well as a launching pad to get your real estate investment business off of the ground. Mobile homes differ from conventional real estate in many ways, yet are alike as both have factors of risk and the potential to earn returns on your investment. With mobile homes, there are several options. You can hold them over the long term as a rental or buy mobile homes to flip, making a quick fix and reselling for a profit. There is also the option to purchase as a wholesaler, never actually taking possession of the property. Before you rush to the nearest mobile home park and make your first purchase, you will want to be aware of these 10 things people don’t know about buying mobile homes in Chicago.
1. Most Deals are Cash
Most people are completely unaware that mobile homes differ from conventional real estate transactions in that cash deals are most common, due to the lower overall initial investment. This also allows for higher returns when investors are buying mobile homes in Chicago
2. Multiple Investments
Because of the lower initial outlay, investors buying mobile homes in Chicago can purchase several, minimizing the risks of owning only one more expensive piece of conventional real estate.
2. Affordable Real Estate
The demand for affordable real estate is on the increase and the mobile home sector has yet to be fully tapped into by investors. Buying mobile homes in Chicago will mean more opportunities to find great deals, with less competition at the bargaining table.
4. Short or Long Term
The demand for affordable housing means buying mobile homes in Chicago allows you the option of flipping or holding the property as a rental. Depending on what suits your investment plans, and your budgetary restrictions,
When you buy a mobile home in Chicago in order to flip them, keep in mind that loans on older models are difficult to obtain because they are not considered real property. Mortgage insurance is impossible if they were built prior to 1976. This is due to models built prior to this year failing to meet the code requirements for HUD housing.
An important difference between conventional real estate and mobile homes is the sales value that can be gained by improvements. Many people aren’t aware when buying mobile homes in Chicago that very careful selection of the investment is imperative, including a full understanding of mobile home issues, to avoid negative cash flow.
Buying mobile homes in Chicago that need repairs requires special knowledge of the challenges that are unique to this type of housing. Of utmost concern are issues with plumbing, especially in older models. The ductwork and central heat and air units are an additional concern in more aged mobile homes that should be taken into consideration prior to purchasing. While attractive, the siding and skirting serve a function and should also be inspected for any problems.
8. Type of Property
Something many people do not know about how to buy a mobile home in Chicago is that while some may sit on privately owned land, they are not considered permanent structures and are treated much like vehicles in regard to ownership tags and taxes. Many mobile homes are located in parks and sit on land that is rented monthly. Taxes, maintenance, and other fees are usually associated with this payment as well.
The documents required for the transaction when you are buy a mobile home in Chicago are the sales contract, mobile home bill of sale as well as the certificate of title. Some parks use salesmen or dealers, should this be the case, state laws will also require licensure of the dealer to perform the transaction.
Working with someone experienced in buying mobile homes in Chicago can help you build knowledge and confidence in your investment business as it grows. In this way, you’ll be certain that you’re buying a sound mobile home in a good location. By laying out a budget that you can live within and making both long and short-term investment goals, you can work together to earn the highest return on your real estate investment dollar.
Why not start planning your better future now? Our team at Chicago Home Buyers will walk you through every step of the process, making it easy to invest. It is possible for nearly anyone to start small and build a steady and reliable passive income stream for your retirement years, you can begin by buying mobile homes in Chicago. With the inside scoop, we bring the best deals to you! Work with the experts here at Chicago Home Buyers and start living the dream! Send us a message or call Chicago Home Buyers at (312) 300-2043 today to learn more.