E56: Why He Will Never Buy Another Regular House & Only Buys Mobile Homes | Chris Gavre

Do you think that traditional rentals are becoming worse as the market changes?

Yeah, I've never really been a fan of traditional rentals in terms of like stick build houses and all that.

And my main reason for that is these mobile homes that I'm renting, I say that in quotations, I'm really seller financing most of them.

But...

I'm picking them up for $40,000, $50,000 a door.

And typically, I'm netting about $1,000 a month.

I'm at a point now where I'm just paying cash.

I'm not borrowing money anymore for rentals.

So I'm seeing a 20% to 25% cash on cash return on my money.

And I sit there and I look at the stick-built houses that I could buy for rentals.

In our market, I could probably pick one up for $200,000.

And maybe I'd net $1,500, $2,000 a month.

And it just doesn't pencil the same because that would come out to be like 10% return on my money.

And so I'm just not, for me personally, I have zero desire to buy houses anymore.

I'll never probably ever buy a stick-billed house again unless it's for me to live in.

And that's just the reason why, because the return is not the same.

On top of that, like you mentioned earlier, the depreciation on these is crazy.

I can depreciate a full value of the mobile home year one.

There's nothing that compares to that sort of write-off that I can get either.

So I'm getting an awesome return.

And on top of that, great tax benefits as well.

Yeah, it's funny because this is not the stuff you see on TV.

It's not the sexy stuff that everybody talks about, but that's where you make the most money.

It's the unsexy stuff that has the most benefit.

So it's like, what are you really after?