mobile home investing

[Craig Dukate]

What are everyones thoughts on investing in mobile homes and how to go about finding and purchasing mobile homes?

[Bill Neves]

Some say they go down in value so avoid them. Others like me, do investing with them. They are low entry and exposure compared to stick built. They are short term investment vs long term like stick built. But cash flow wise, you can get way more bang for your investing buck with mobiles. Best to work with someone who has done a few. There are differences in construction and repairs.

Some people invest for assets and some for cash flow. See below for cash flow difference.

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Posted previously:

Mobile Homes are a good investment if you're so inclined.

Although they are reported to go down in value. I don't see it that way. It's an apples and oranges deal. It is a short term investment, compared to a stick built rental over several years.

However, a typical $100k rental may return $300/mo cash flow after expenses.

Same $100k could gain you 5 or even 10 mobile homes with the same $300/mo cash flow EACH. Plus most people will need a loan for each rental purchase. If you do mobiles, you will sell some for cash, as many I've done, and can buy some outright, no payments, better cash flow.

If one rental is empty you have 100% vacancy. If you have 10 mobile homes and 1 is empty. That's 10% vacancy. Less exposure.

$1500-$3000 cash flow per month on 5-10 mobiles vs $300 for one rental. Which would you prefer? You may only get 4-5 years from each mobile unit. Just replace it and keep going.

Personal preference but there are several people on this blog who do very well with mobiles. John Fedro (frequent poster here) is a great example.