here’s my question… where i live lots of people live in mobile homes. i’ve been checking the papers and noticing as i drive around that there are a good amount of them for sale for pretty cheap prices. my goal is to acquire single family properties and rent them to produce good monthly cash flow. do you guys think this would be an okay way to go about that? most of these mobile homes would only require some clean up, paint, maybe new carpet and vinyl, and possibly appliances. would love some advice.
A lot of mobile home parks do not allow people top rent their mobiles out to a third party. Check the individual parks for the rules. I would get a copy of Lonnie Scruggs’ book “Deals on Wheels”. He’s the mobile home guru. The money in mobiles is buy cheap, do some rehab and resell for more cash or on terms…
thanks i’ll definately check out that book. but, the mobile homes i’ll be buying would not be in trailer parks. the ones i’ve been browsing around looking at are on their own land.
I agree that mobiles give you the “best bang for your buck.” I own a few, along with some single family homes and the rent on the mobiles produces better cash flow. Just be choosey about what you buy. Also screen your tenants carefully. Typically mobiles attract a pretty sorry lot of people. Of course there is always exceptions.
May I ask how you plan to fianance? Most lenders require more down for mobiles, especially for investors that will not occupy the home.
All that said , I believe that the potential to make a lot of money is there.
i will try to get some owner financing. if not then i’ll be paying cash. it will be a pretty slow process, but the mobile homes i’m talking about go anywhere from 5 to 15k. i’ve got plenty of time for this plan to drag out… i’m only 24 years old so slow but steady will work.
I’ve flipped some mobile homes and made money on them. A couple of things to check out… The sub floors in mobile homes are usually particle board. The water heaters are notorious for leaking and not being noticed. What happens is the flooring weakens and I’ve seen water heaters fall right through. Also check exterior doors, if they’re broken and can’t be repaired they are very expensive special order items. Getting back to the water heaters… A nice big hole in the floor with a water heater half way through it is a GREAT bargaining chip. Most of the owners don’t realize how bad it is because the water drips through to the ground, when you pull off the carpet and reveil a 2 foot hole, the ball is in your court and you can low ball away.
However… Mobile homes take a lot longer to sell than regular houses so be prepared to hold these things for 6-8 months. Good luck!