Mobile Home Startup

[Samuel S.]

Hi BP folks,

So I recently closed on my first mobile home park, and over the last few months have been in the process of upgrading several of our current POH's.  Throughout this time, I have been thinking a lot and researching about whether it would make sense to continue spending the time renovating, or if I should buy refurbished, or if I should even look to purchase new.

For those who are experienced in this space, I was wondering if anyone has ever done a financial case study to see if manually building a HUD code approved mobile home (via Home Depot materials) could potentially be cheaper than purchasing new? And, if anyone might have a cookie cutter "bill of material" list they wouldn't mind sharing?

Thanks in advance!!

[Daniel Smithson]

You won't be able to build a HUD compliant mobile home on site. The manufacturers have assembly line inspections that approved home designs for specific regions. You can build a traditional home, but that will require local code compliance and the requisite inspections. You can build a "tiny home" or "park model RV" but they won't be HUD compliant/licensed.

Generally, it's best to purchase new. On the 21st CASH program, you can place homes with nearly nothing out of pocket if you resell them and about $6-$8k out of pocket if you rent or sell them on lease options. Buying and rehabbing used homes can be a gamble - I've placed some that cost as little as $10 - 14k for buying, relocating, rehabbing, renting, etc. I've also had some run north of $30k for the same... You can refinance these with 21st as well to pull your capital back out, but it's a much slower process.

We're getting out of the used home game and going with new homes for the lower up-front capital cost and attractiveness to better residents.