Beginner Investing in Mobile Homes

[Tramone Russell]

Does anyone know if mobile homes have equity? Are you able to take HELOC out on a mobile home?

Around me these homes go for about $60,000 for a really nice 4 bedroom and 2 bathroom mobile home.

Currently I'm trying to come up with a strategy plan. I can currently save up a rate that I will at least have 10k saved in a year. So I'm thinking to put that much down on it through a FHA loan and live there for a little while until I have a 75% LTV ($15,000/60,000) once I have that I want to try to refinance so that I can get someone to rent it out. If I have $15,000 into the property monthly payments estimate to about $308/month (Principal, Interest, Prop. Tax, Home Insurance, Mortgage insurance all included) and these mobile homes typically rent for $800-$1000. So in my mind this seems like a solid investment. My next question is does this build equity? If I have someone pay down the principal to let's say eventually 35k, could I take out a HELOC on this mobile home? If this is possible I would like to take that HELOC and use it towards other mobile homes and just rinse and repeat this process.

Does anyone know anything about this? Are there any flaws I'm not seeing in this plan? Is there anything that would make it better?

Thanks so much for anyone who takes the time to read this! Much love to BiggerPockets!