Thinking of Investing in Mobile home,any advice?

Question

Hey I'm 20 years old and live in southeastern Louisiana. I have a good job and have been able to save up a good bit of money. I found a local selling his mobile home for a really cheap price ($2500). It's currently in a nice park where the rent is 300/month. Its 65x14 also. The guy said it had all the subfloors replaced with plywood and it needs new flooring/carpet. Also roof had a leak he repaired but he never fixed the ceiling inside of the home so it'll need sheetrock/patch. I was planning on just staying In it a couple of months and fixing it up a little until I find a new tenant to lease to and using that revenue to put towards a nicer apartment. Actually it's currently occupied by a family and maybe i'll even just let them continue to rent it and save that money up. I was just wondering if this sounds like a good investment for the price. I'm new to real estate but have been wanting to get into it since high school and I was just wondering If this was a good start. Any tips or advice.

Steven Wiltz · Answer

also, regularly visit mrlandlord.com, buy his book The Landlords Kit, study study study

Robert Smith · Answer

Steven Wiltz

Robert Starnes

The girlfriend and me are actually going to check it out in person this week to see what we're getting ourselves into. And yes that may be a good technique actually as far as being just a manager. Thanks and I will def check out those books to get more knowledge

Robert Starnes · Answer

It's not much money and will be a great educational experience good or bad. Go for it and let us know how it works out!! I would actually lean towards keeping the existing tenants with some repairs and a new lease like you planned. Ask around some though to find out exactly why the owner is willing to sell to you so cheap...

Steven Wiltz · Answer

you can buy Deals on Wheels online cheap; great beginners guide on purchasing, basic repairs, also selling. Easy read... read it at least twice. Another resource is mobilehomerepair.com ; check out their downloadable (and cheap) repair manual. Also the free articles.

*If* you decide to rent, you need to present yourself as the manager; because of your youth, unfortunately people won't take you seriously. Even as a buyer, you have a boss. You don't make the big decisions, the hard decisions; the boss does. You do the grunt work, the boss provides (and receives) all the money.

Get that book, and follow it. Luck to you

Robert Smith · Answer

Bill Neves

Thanks for the info also. Anymore input?

Robert Smith · Answer

@Steven Wiltz

Thanks for the input, it's greatly appreciated. I just offered the owner $1800 cash today so I'll see what he says. I already planned on having to do whatever repairs it will need myself. Hopefully it's not too expensive. I was thinking of maybe just getting some vinyl tile for now and installing myself just so people aren't walking on wood. Not sure how big the hole in the roof is but I'll leave that for the professionals. Hopefully not too expensive. Also I was planning on maybe just telling the current tenant to ask the previous owner for his security deposit back and drawing up a new lease for $650. I figured if I can get them to atleast stay another year I'll make my money back in about 8 months. If not I'll just live there myself and enjoy the freedom of living on my own until I do find a tenant. My main concern is should I actually go through with this? Does it sound like a good plan? I'm only 20 y/o and obviously an amateur at this but I have to gain experience one day! Also the lot does allow rentals.

Bill Neves · Answer

@Steven Wiltz

Yessir. And that sounds great.

We're heading to Mesa, AZ for 3 months to snow bird. When I get back, in April,  I'll yell and let's grab coffee or split a soda.

Steven Wiltz · Answer

hey Bill - you're mentoring Erich, aren't you?

Ps I work in one park that allows rentals - money flowing to me like water! Did owner finance deals in there for years, they are sooo appreciative - about 18 mos ago they said they trusted me to rent them out, so now I've got 5 in there, and looking for more

Bill Neves · Answer

Hello @Robert Smith

I agree with @Steven Wiltz about the current tenants. Roof leaks and floor damage happens over time. If the seller had to fix it up, then the people in there didn't, so will likely NOT take care of it after you acquire it.

Apparently you can rent in that park. I'm in the Pacific Northwest, like Steven, and NO parks that I am aware of allow rentals in this are. But I know in the south and east some do.

Check out the mobile home info here and learn all you can before you jump in to make sure you're not buying someone else's problem.

Yell if you have any specific mobile home questions and we can likely get you an answer.

Have fun!