Conversion of Mobile Home to Section 8 for Ultimate Cash Flow

[Jordan Graham]

Hello,

I am very close to purchasing my first rental property and believe that I have potentially discovered the ultimate way to cash flow in higher priced markets.

I know I already made some of you cringe with the title but here it is again. Mobile. Homes. + Section. 8.

Before you run for the hills, hear me out.

So here is my plan and I would love some feedback on if anyone has tried or what their experience with Section 8 tenants has been. I know S8 gets a bad reputation but it all comes down to screening! Have certain screening standards in place for ALL tenants, HUD or not.

Based on HUD Fair Market Rents, rental rates vary in every city, state, and even zip code. But here's the thing, you find an AFFORDABLE home (aka mobile home) in an UNAFFORDABLE part of town. For example, there are areas of SD where you can find a completely updated or new 3+ bedroom manufactured for $150,000 in a zip code where HUD will pay you $4,500+ a month GUARANTEED. Now I'm not a mathematician but after mortgage and lot rent that sure sounds like $2,000 (give or take) in cash flow A MONTH.

And oh yea, contrary to popular belief, mobile homes actually do appreciate in the right cities, especially if the land underneath is owned.

Another bonus is that most mobile homes are seller financed so you don’t have to deal with the scrutiny of a bank or the high down payment of non-owner occupied investments.

If there are any agents in San Diego that can help me narrow down some of these properties within this criteria, please reach out to me and we can discuss a game plan.

Cheers