Needing advice on Mobile Home investing & Financing!!!

[Lindsey Run]

Hi everyone!! I am a total newbie to real estate investing! I have a million question... So here it goes...

I found a nice mobile home property that I would like to buy and rent out for extra income. I hope to eventually buy a good many down the line so I can quit my "day job" and finally do what I feel like I would LOVE. First off I'm a little worried about investing in mobile homes. SOOO many people have told me investing in mobile homes is a bad idea. Well I don't have a lot of start up money and I can buy a decent/nice mobile home (on its own land) for 30k and under. Around here if the mobile home is in a nicer area you can rent a 3br/2ba for $550/mo give or take some. Is this a bad idea? Would you suggest mobile homes for someone wanting to have rentals with very little money to start off with?

My husband is a handy super man so when it comes to upkeep I will rely mainly on him. I feel like upkeep up a mobile home would be cheaper than a stick built home.. Do you agree?

Other HUGE problem is I cannot seem to find anywhere willing to finance a mobile home. I have called many local banks. There have been a few that said they do but it would need to be our primary residence or a double wide. If or when I find financing what type of loan would you suggest? Are there 30yr loans for these? A lender won't even speak with me to find these answers out since they don't offer financing for them. I just want to know round abouts how much I will most likely have to put down and how much my payments will be with everything included (insurance, etc.) I am wondering if I ask $550/mo if I will be profiting enough after all is said and done. I would like to at least be profiting $200/mo or so to make it worth it.

Any advice for me would be WONDERFUL. I am totally new to all of this and want to absorb your information and advice like a sponge. I just want to get my foot in the door and become successful without getting in over my head. I know that this isn't going to be easy by any means. I love a challenge, but I don't want it to break my pockets.

[Tom Goans]

@Lindsey Run,

I have a history of owning, buying, selling, and renting manufactured homes. I have also been involved in the development of manufactured home communities and mobile home parks.

My experience has been terrific for numerous reasons.

I highly recommend investing in manufactured homes, especially for the beginner. The financial commitment is much lower and the return on the investment can be much, much greater. Holding costs are pennies as compared to a site-built property.

Your husband should find them easy to work on with most of the supplies available and in stock at either of the two big-box stores.

Of particular note, thoroughly learn the real estate business - every aspect and every segment.

Also, take business classes. Knowing how to successfully operate a business is critical and will make your life easier.

Then, learn everything there is to know about manufactured homes. Everything. My best education came when I attended a national manufactured home show. I got to meet the many manufactures and learn all the subtle differences between them.

Then, learn and understand the target market better than they know themselves. This includes learning their earning and spending habits. This one suggest is true of all segments of the real estate business.

Learn how to communicate with tenants. Not just legally, but also the best way to communicate without alienation. This will greatly improve your success on finding good tenants and collecting money.

Last, but most important, learn the laws, federal, state, and county where the property is located. Read every word of every statute. If you have questions, ask a lawyer for explanation ... they speak the same foreign language as the law is written. This suggestion is critical no matter what segment of the real estate business you pursue. The real estate business is very complex. Knowledge is key to easier and enduring success.

As for financing, the best is owner financing. I highly recommend doing lease with option to buy. This gives you an opportunity to give the home a test drive before the financial commitment. It also gives you a test drive. I recommend using two separate agreements, one for the lease and a separate for the option. Your attorney will be helpful here.

Here is a consideration. I had an excellent experience owning and renting homes in parks. The cost is less. Moreover, become friends with the park manager. This person will become your free property manager, adviser, and will be an excellent source for future investment opportunity leads. Every day you read on this blog of people seeking sources. Your friend the park manager can be the only person you need.

Best wishes for a long and enjoyable experience.