Mobile Home

[Dustin 0]

I have someone who emailed me about his mobile he locked under a L/o. I have flipped them in the past but they were tied down according to FHA standards on acreage and appreciated just like stick built homes. His home is in a park and is more of a cash machine. He asked me about how taxes are paid on it and if its just like a car.

 

No big deal but I thought I would ask someone here if they knew how taxes are paid on a L/O of a mobile that not classified with stick built homes?

 

I told the guy its something he might need to research and possibly call specialists in that field. He wanted to know if taxes are paid on the rent and then on the sell or what?

 

It seems Im ending up "consulting" my way to my next deal, lol.

 

Thanks in advance.

[Beck 0]

Dustin,

 

I'm new to the site, and I specialize in working with Mobile Homes. I'm pretty sure MH's are taxed differently in different states. Here in OH they are treated as motor vehicles. Although a few years ago, they changed the law for taxation. Rather than paying a sales tax upfront as you would when purchasing a car, MH owners are now charged an annual property tax, much like a stick built. I don't know the taxation laws in your state, but it should not take more than a few minutes online to find out.

 

I know this didn't help you whatsoever, but I felt like jumping in on this one!

Thanks,

Beck

[Dustin 0]

Thats ok,

 

I am assuming , though, the taxes would be paid and kept with the owner just like a regular stick built at least until the option is exercised. No need to make things more complex.

[Beck 0]

Thats ok,

 

I am assuming , though, the taxes would be paid and kept with the owner just like a regular stick built at least until the option is exercised. No need to make things more complex.

 

 

I sign the Title over to the buyer when doing Owner Financing, and keep a lien on the title. Taxes and insurane are the responsibility of the buyer.

 

1 call to the auditor will tell you if the taxes are current, and if they aren't I pay them and add a monthly fee to their payment.

[Dustin 0]

Thats not a bad way to go about it.....you do this even with a lease option?

[Beck 0]

Thats not a bad way to go about it.....you do this even with a lease option?

 

 

I have not yet done a lease option on a mobile home. The mobiles in our area are inexpensive enough that we just do "Owner Financing" on them. I buy the homes for cash for an investor, charge a fee and sell the home on Financing to the end user for usually about double what the investor paid.

Example:

 

Home price plus My Fee: 9,000.00

 

Sold for: 14,900.00 financed. 500.00 down, financing 14,400.00 at 14% = 275.00/ month for 82 months

I take a monthly management fee from the payment of 49.95 so my investor gets a check every month for 225.05 for the next 82 months.

 

Total collected from investment: 18,954.10 (w/DP)

 

This is a 110.6% ROI

or an annual ROI of 16.4%!!!!!!

 

The investors I have are usually using these investments inside of their SDIRAs.

[Dave T 0]

Dustin,

 

Your question has two components. Property taxes and income taxes.

 

Since this "someone" already owns this MH, let's assume that s/he already knows how the property taxes are assessed and paid.

 

The lease option income is taxed in the same manner as any other lease option property in his/her circumstances. We don't have enough facts and circumstances about "someone's" deal to be any more specific.

 

The only tax advice you should give "someone" is to consult a licensed tax professional for specific details.