Thinking about getting into the mobile home market in Charleston!

[Ryan Kolodzej]

I am moving to Charleston in about 1.5 months. The mobile home market intrigues me.

Would it be wise to look at renovating them in this area?

Would it be better to buy-and-hold?

Is it possible to buy-and-hold with low cash?

What websites/resources should I look at to find listings?

Is this a good 'niche' market for Charleston and would it have a good ROI?

Thank you for all your consideration and help!

[John Fedro]

Hi @Ryan Kolodzej

First off let me say good for you for aiming to get educated about mobile home investments prior to moving and jumping into the market. @Leslie A. gives some great advise about mobile homes and I enjoyed her comments with regards to people having their negative opinions about the industry. If you are going to pursue any form of investing you can always lose money or become defeated if you go in blindly and take uncalculated risks. I hope this last part makes sense.

With all that said let me take the time to answer some of your questions. The answers I have for you come not as a guess but from experience working with MH investors already in SC. I have tried to segment the questions and answers below for easy reading.

1. Would it be wise to look at renovating them in this area? When renovating you may wish to fix what is wrong with the home but not to upgrade the home. Every dime you put into the MH will take time to get this money back before any profit is made.

2. Would it be better to buy-and-hold? Good question. In NC and SC we are seeing more end-users having cash-money to purchase homes from you for all-cash, versus some sort of payment plan arrangement. I say "more end-users" in the last sentence because in most areas of the country most MH buyers have less cash to purchase our MHs outright.

3. Is it possible to buy-and-hold with low cash? Yes, however you must only purchase homes you know you can sell quickly and for a profit. This takes planning and casting a wide net to make sure you know what is for sale and what your buyers will pay.

4. What websites/resources should I look at to find listings? There is an old saying that goes, if the home is on a list the deal doesn't exist. Whether you believe this or not finding sellers before their homes gets online is best for you. With that said simple sites like Craigslist are a good place to start.

5. Is this a good 'niche' market for Charleston and would it have a good ROI? If you advertise, purchase, and resell right then Yes. If you advertise, purchase, and resell for too little then your profit will be skinny and you will burn-out or lose money very quickly. I know this is a vague answer but it really does depend on you and the deals you close. Is there a good potential in SC... absolutely. It is the #1 state for the most mobile homes per capita.

The above comments go for mobile homes in parks and attached to private land as well. Make sure you know exactly what you are doing and you will be profitable. Sites like this one really help you get a clearer picture of what is to come.

All the best and I hope this helps.

Talk soon,

John Fedro