Mobile Home Investing in California

[Wes Blackwell]

I'm interested in learning investing strategies for mobile homes, but here in the Golden State (Sacramento area) we're paying Golden Prices both for mobile homes and lot rents.

I've got the dough to make all-cash offers and fund the rehabs, and I can find units offered in the $10-20k range, but with the lot rents being so high ($400 - $600/mo.) I'm worried it's just gonna suck the cash flow right out of the deal for me.

I've have to be charging a couple hundred dollars above that to be worth it, and at those price ranges the buyers could rent a SFR or nice apartment.

But then again, they wouldn't be owning it like they would with a mobile, so perhaps that makes all the difference...

Basically I was wondering if any investors here have found a way to make money with mobile home strategies here in California. 

Perhaps someone could tag John Fedro for me to see if he has a student in these parts finding success.

I'm considering enrolling in his mentoring program but wanted to see if other investors had already found proven business models for success here in Cali. 

Anyone? :-)

[John Fedro]

Hi Wes and all,

In your area I could certainly go off on a few different tangents with regards to California mobile home investing in general, however I will keep my response and answer directly related to your primary question about investing in your local area.

In the hotspot areas and coastal areas of California you will find many mobile home communities asking lot rents over $800+ per month with many sellers asking over $50,000 for their use mobile homes located inside pre-existing mobile home communities. While there may be profit to be realized working with these sellers in these types of communities, they are a bit risky for me and I am certainly not the expert in fast turning or profiting with these types of pricey properties.

With that said, If you are willing to travel in and around your county, and the surrounding counties you will absolutely find motivated sellers that need your help. I am working with a husband and wife couple not too far from you that have been very active for the past two years. I have done a video testimonial with Dave and Cindy that can be found somewhere on my website. I did some quick research and found over 490 mobile home parks within a 50 mile radius of Sacramento. Many of these parks will absolutely be out of our price range, concerning mobile lot rent and homes for sale, however there will be parks that do need your help and have an inventory of mobile homes for sale at reasonable prices. You will usually find these reasonably priced communities and homes in more rural areas away from popular cities and coastal areas.

In short, in your area I suggest you begin investing inside mobile home communities with lot rents below $700 per month where you are able to find properties regularly for sale for $30,000 and below. Please keep in mind that many of the properties we close are not found on Craigslist and take some time to negotiate and develop. I hope this all helps and makes sense. I do not want to paint a rosy picture of your area however it is certainly not doom and gloom. There are sellers in and around your area that are confused and thought their homes would sell quicker and for more money than they are currently being offered.

Either way, I hope this helps and at least point you in the right direction. If you ever have any follow-up questions or concerns we are all happy and here to help give you guidance.

Talk soon,
John Fedro