Mobile home investing

[Jordan Tinning]

Hey guys, 

I know that mobile home park investing is a thing, but i am curiuous if you are able to buy a single mobile home within a park and rent it out for cashflow. The reason I am asking is because I don't have a ton of capital and am looking to buy assests that produce great cashflow so that I can replace my W2 income. I know that people do buy, wholesale, flip, and hold single mobile home parks, I am just curious how that would work from a buy and hold perspective with lot rent since you would have to charge more then the lot rent and cover your debt service in order to cashflow. 

Is that right? Or am I thinking about it the wrong way? 

Thanks in advance for your help! 

[Nathan Gesner]

Yes! I think this is an excellent way for someone to wet their chops when there is very little money available.

Travel around to the mobile home parks in your area and speak with the manager. Let them know you are interested in purchasing trailers for cash. Leave your contact number and try to check back regularly so they don't forget about you. If they have a community bulletin board, maybe they will let you post a small advertisement to the community.

people in trailer parks typically live paycheck-to-paycheck. when they have to move, they can't afford to move the trailer home and they have no idea how to rent it out and manage it. They would rather sell it cheap and have cash in pocket for their move. This means you can typically pick up a trailer home below market value. Keep in mind, mobile homes have unique problems and unique maintenance issues so it pays to educate yourself on them, particularly any built prior to 1980.

I bought a trailer home for $3,000 that was fully furnished with newer kitchen appliances, newer furnace, new air conditioner, new flooring, and it was two doors down from the managers residence. It paid for itself within a year. I sold it a year later for the same price I bought it for plus I made over $3,000 in cash flow. I essentially turned my $3,000 into $9,000. Not big numbers but an easy way to get started.