Finding Used or Abandoned Mobile Homes to Buy in North Carolina

[John Jacobus]

We have a mobile home park in Fayetteville, NC that we’re trying to fill with 20 used / new homes.  We have engaged 21 Mortgage and are in the process of registering for the CASH Program.  However, we don’t think the market can support a rapid infill of all new homes.  As a result, we are looking for used mobile homes to buy, rehab and rent.

Does anyone have experience finding, buying, rehabbing and renting used mobile homes?  Any advice on the best way to go about this and the best source of leads?  What are the best advertising channels?  Who’s doing this at volume (5-10 homes)?  What are the lessons learned?

[Jack Martin]

@John Jacobus used homes are not that big of a deal if you have all the pieces in place.  It starts with finding the homes, but it's also smart to have your whole team built beforehand to move them, set them up, and do whatever rebab is needed.  Here are some ideas that have worked for us to build a team:

USED HOMES

• New MH Dealers - approach the local dealers and make it worth their while to call you when they get a used trade-in.  Keep in mind, they likely already have others who they call, so make sure to be compelling, or they will just put you at the end of the line and you will never get a call.
• Used MH Dealers - find the MH sales people who specialize in the sale of used MH as a service - Google "sell my mobile home" or "mobile home sales" etc. to find them.
• Wholesalers - create a relationship with the wholesalers who do MH.  This could become a constant flow if you build a team of them.
• Movers - locate the MH movers near your park.  They always know about used homes and you will need them anyway.

MOVING AND SETUP

• Google - movers are pretty easy to find with a bit of internet research.   Search Google Maps as well. 
• Network - the more people in the business you know, the better.  Network with dealers, movers, setup guys, park managers, park maintenance techs, and park owners.  They will know movers you have not met, and setup guys who do a varying degree of the work.  

REHAB

Rehab can be approached a couple different ways.  You can get the home setup and market it as a "handyman special" and you won't need to do the rehab.  Or you can completely rehab the unit and make it really nice before you sell it.  Obviously, that will attract completely different tenants, so you have to decide what direction you want to go.  Depending on what the home needs, you may be able to use a local handyman to do the rehab, but we have found it's best to hire contractors who specialize in MH.  They are familiar with the different constriction of MH and have access to the materials and parts that are unique to MH.  Home Depot does not carry MH parts and a handyman who is not specialized will spend all day trying to find them. 

• Google - sometimes you can find a MH rehabber with internet research, but you may need to search on several platforms to find one.  Try craigslist, and service based platforms. 
• Networking - always great to get a referral from people in the business.  Network with all the folks above and you will likely find a couple candidates. Some of the setup guys do rehab as well. 
• Material Sources - find the MH supply houses that specialize in carrying MH specific materials and parts.  They will know all the MH rehabbers.  

All the best,

Jack