Florida mobile home investing

[Craig Jennings]

I'm exploring purchase of mobile homes in Florida communities as "snow bird" rentals. I realize many communities have deed restrictions on age and renting. I'm curious if anyone has any experience with investments of this type. I live in KY so I would be managing from a distance and reliant on local resources. Looking for thoughts, guidance and suggestions. My background is in SFH rentals so this would be somewhat new to me. Any thoughts or input is appreciated.

[Tom Goans]

@Craig Jennings,

Knowledge is key to enduring success.

As a safeguard, I would recommend you first develop a history of experience in the various segments of manufactured homes. Do this locally. A great way to develop an understanding of the homes and target market may be to work for a local mobile home park, investor, or manufactured home community. There is a huge amount to learn and understand.

Lean everything there is to know about the homes themselves. Go to manufactured home shows and talk with the sales people. Act as if you are a buyer, not an investor just kicking tires and taking up their time. Learn the various ways the homes are constructed and financed. The homes are constructed in many different ways using very reliable forms to ensure more uniformity than site-built homes. Some homes are better built than site-built homes. Some have a stronger construction. Learn the ways to "setup" a home or to put it on a permanent foundation. Homes on permanent foundations may qualify for federally backed loans, such as FHA - there are rules that must be followed for this to become a reality. Know the rules and you broaden your options.

Study the target market. Learn all there is to know about the target market. Learn the best ways to market to the target market. Learn the best ways to set up payment plans and collect money.

I would recommend having knowledge of the product and target market long before investing out of your immediate area. Any long distance investing is extremely challenging, even for the best skilled investor.

Moreover, there are many very experienced investors with knowledge and history that are your competitors and may be your sellers. Level the playing field.