About to Start Investing Career in Mobile Homes

[Omar Naguib]

Hey guys! My name is Omar Naguib, I'm 18 and am hoping to start my investing career in mobile homes. I hope to get minimal cash flow ($50 - $100), the point of this early start is to learn so I can become a full time real estate investor at 25. Sounds like a plan, right? I've got a problem. I've been going back and forth on what type of an investor I should be, and right now I'm settled on mobile homes. I have some worries, though. I've heard that tenants can cost you big money by ruining the home and costing you repairs. I also hear that park managers can be a pain in the butt (I'm pretty easy to get along with, but still a worry). Are these legitimate worries? Should I be concerned with renting and just fix them and sell them? I'll probably start out with only $2,000, so mobile homes are really my only hope to start investing early. What are some ways to lessen the risk, besides educating oneself (I'm in that book reading process now), such as inserting certain clauses in the agreement about damage to the property?

Thanks for the help, I really appreciate any feedback I get.

[Belinda Lopez]

I know some investors who love renting out mobile homes, but they only do it on homes attached to land and most of their renters are families. It can work but probably not for a beginner with no experience.

I highly recommend you try to find a local investor group and see if there are any mobile home investors. They can greatly assist you in getting started. Barring that, take a look at John Fedro's materials and read everything you can here on BP. Mobile homes are a very different type of investing than single family homes and apartments. Yes, the tenants are a different breed but you can also find some overzealous local city and county officials who can make mobile home parks a pain to run.

The Dodd Frank bill changes everything for anyone trying to seller finance and it could mean some ridiculous fees. Also, in Texas, you can only sell three homes a year without getting a dealer's license. Good luck!