Manufactured homes and Cash Flow

[Keeya WangJones]

Hi, Does anyone have any experiences in purchasing a manufactured home to occupy renters, flipping, and advice on building a relationship with a park? I'm thinking of shifting focus from a Multifamily to manufactured homes in the San Diego area for cash flow. The numbers are incredibly working out. Any suggestions on which parks in San Diego allow this kind of buyer, renter relationship? Cheers, Keeya

[Bill Neves]

@Keeya WangJones

Hi 

There is a ton of info in the manufactured (mobile) home forum here.

And Yes the numbers are incredible. We've found better than stick built returns. And I've done a bunch of stick built deals. Plus usually no title comp or realtor. Fast turn around. We've sold several the same day we got them.

Lots of investors say to avoid parks. The park managers can give you grief. Kinda like life. There are good ones and not so good ones. We've found that if we nurture a good relationship with anyone, things run smoother, and are mutually beneficial.

You should talk to, or work with, someone who is doing them or has done them. There are similarities and a LOT of differences. Walk thru a couple with a contractor or handyman (woman) who KNOWS them. They can point out what to look for and what to avoid.

We've found parks, or actually, the park managers to be a great resource to get some great deals. Go meet them, tell them what you're doing and how you can HELP THE PARK MANAGER. It ain't about you making money, it's what you can do FOR them.

Parks vary and may or may not allow renting the units.

I'm in the Portland, OR area. Our prices will be lower than San Diego but...

We just sold one a month ago that a park manager referred to us. So it wasn't 'for sale' anywhere. 

They wanted $12k...
Bought for $6k with 2 months rent free to do repairs.
Repairs $14k
NOTE: I don't do any of the work. I hire it all out. So working a job is not a problem.
Total in $20k

Sold $59,900 ($60k) 1 week after we got done with the work.
Net $39,900 ($40k)
60 days involved, 30 days to close - had to pay rent here but the buyer paid it due to wait time.
90 days total.
ROI 200% cash on cash @ 90 days
ROI annual 800%
Incredible returns? We think so. Do that with a stick built house.

You might make $40k on a 90 day stick built deal but will have $100-400k in it. I have, several times.

Your local REIA (Investor club) should yield some info and folks to work with.

Yell if you have other questions.

Good luck and have fun!