Beginner advice when starting flipping Mobile homes ?

Question

Hello BP,

I am considering graduating from investing in flipping lots/ land,  to rehabbing or flipping mobile homes.

what should a beginner look for?  Is there a number formula like it is with home rehabs?

Again, I'm just looking for the basic or as much information as one would like to give regarding starting mobile home flipping for beginners.

Thank you, in advance.

Renee

Rachel H. · Answer

Sure thing, I'm happy to answer @Renee Ross. Regarding your question, the supply and demand will depend on your area.

Usually, I like to get an idea of the market by talking to mobile home park managers, owners and mobile home dealerships in the area. These folks work in the business and usually know what's going on in terms of local supply and demand. In the past, networking locally with them really helped me when it came to learning the market and doing my own due diligence.

About the dealers license, if you're buying and selling on a regular basis it's best to check the local laws in your area. It will depend on where you're doing business and how often you intend to buy and sell. In most cases, you can do at least one deal without a license as that is what homeowners do when they need to sell their homes.

If you have any other questions, feel free to let me know. Hope that helps!

Robert E Bogino · Answer

It sounds like you aim to do this on land as true real estate and not in parks?  Comps are run the same as most have said.  In my area I do have to go a little further out to find comps than normal and estimate going up or down depending on the county, city, schools etc.   One trick I use is to get a pre sale/listing appraisal.  The new buyers lender cant actually use it, but I've realized it helps "guide" the new appraiser to your ARV.  There are other things to consider on your exit strategy such as title retirement and foundation type if you want to be traditional lender approved.

Jacob D Cockerell · Answer

Keep in mind that if the manufactured home has been moved FHA and most lenders will not approve a loan. Moved meaning that it is not in its original placement from the manufacturer. I recently was assigned to appraise a manufactured flip that the owners had moved from one location to a new location. Interesting enough the foundation inspector had stated the home had never been moved. However, it took me maybe an hour of research to discover it had been moved twice. One of its prior addresses even had the home listed on the PVA record as attached. The deal fell through in this situation. The bank wouldn't lend to the buyer and the investor was stuck with a property they can only sell to a cash buyer.

Renee Ross · Answer

@Rachel H. you are the best !! Again thank you so much for responding and the extra information [ advice ] I would definitely take note and follow !

Bob Stevens · Answer

ALL RE is the same, its ALL just about the numbers, do not over complicate it , just know your numbers and product,

Rachel H. · Answer

@Renee Ross Since you've flipped lots/land, it should be a smooth transition flipping mobile homes. The difference would be flipping mobiles to see if they're attached to the land (as real property) or just the home without the land (as personal property).

As with any asset class in real estate, it would just require you research the market knowing the supply and demand in the area. Also, you'd have to figure out what buyers are looking for when buying mobile homes including what types of buyers exist in the market.

Lastly, you'd have to get experience looking through homes to determine repairs and/or replacement costs if any. One thing you can do is talk to mobile home contractors to get opinions on what specific items would cost depending on the condition of the homes you're looking at.

Hope that helps!

Christian Ehlers · Answer

Same as any other flip be sure to get it well under market value and don't over improve for the area unless research supports it. I can't remember the year for sure but I believe any mobile home built before 1976 is disqualified from most financing options so be sure to keep that in mind as well.

Renee Ross · Answer

@Jacob D Cockerell wow thanks that's great information!! Taking notes ..

Renee Ross · Answer

@Adrien Hebert Yes, I flip land and NC is definitely one the markets I cater to as well for that. Thank you so much for the information,  for my first couple of mobile rehabs / flip, I'm going stay in my own backyard .However, I would love to connect for future ventures .

Thank you

Beginner advice when starting flipping Mobile homes ?

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