Beginner in Mobile Home Investing

[Terrell Simmons]

Hello-

I am very interested in investing in Mobile Homes but have very little knowledge in this field. I just finished reading " Mobile Home Wealth" by Zalman Velvel but still want/need more insight as to how things work. My initial goal is  more cash flow which is why Mobile home Investing is appealing. I am hoping to buy 5-10 mobile homes within the next year. At this point I am only interested in renting them out and seller financing. My price range per home is around 5-10k. I would want to find fixer uppers & foreclosures. The states that I am most comfortable with as it stands is NC, SC, PA,DE & GA however I am open to other states. 

If anyone can offer any insight as to where I should begin? Should I work with a broker or park manager? If so, where can I find them? Are there other states I should consider? Any insight that can be shared would be tremendous. I am eager to learn and soak up as much knowledge as necessary to head in the right direction. 

[Shawn Nachurski]

@Terrell Simmons It may sound trite but it all depends on your goals. Getting clear on what you want to accomplish is super important. My wife and I own 2 MHC's now and are actively negotiating a 3rd. It is important to focus on a specific location and strategy. We invest in Indiana because we have a team on the ground that we know and trust (lenders, maintenance, vendors, etc). Also the laws there favor the land owners. Our communities have MH's that are POH (Park Owned Homes), LPO's (Lease Purchase Option), and ROH (Resident Owned Homes). By far the easiest to manage are the ROH. Our strategy is simple. Convert rentals and LPO's into home owners. Lot rent is affordable. People that own their homes (they have the title in hand not a Rent to Contract) tend to to come up with the $300-$350 per month in lot rent. This provides consistent and predictable income for us without a lot of moving parts. Maintenance on MH's can get expensive depending on the age and type. 

My advice is find someone who is already operating in the MH space and work out a partnership. This is the best way to mitigate your risk and fastest way to learn.