Flipping Mobile Homes...Does it work?

Question

There's a lot of discussion about flipping houses, but what about mobile homes? I'm just starting out in real estate, but to me it makes sense (at least for a little guy like me), because there's less money invested, the finished product sells for less than a house, and there's always somebody looking for cheap living that can't or doesn't want to get a huge mortgage. Obviously I'm not talking about putting $100k into a mobile home, but maybe $2500 and sell it for $4000? Has anyone ever done this? Advice would be great!

Thanks

Marc

Thanks

Marc

Bill Neves · Answer

@Mark Devens

We see much better numbers in the deals we do. You can get them for low dollars, fix up a bit and sell for a lot more.

Example: Buy for $500 with 2 months rent. Put in $7k in fix up money. Sell for $17k and net $9500.

@Carrie Barrette

As far as value - Best and most accurate way - you have to do a market analysis of your area. Need to visit parks and get an idea what places are selling for.

Good luck and have fun!

Bill Neves · Answer

@Greg S.

I was of the same opinion for 10 years, when I did stick built houses. I was wrong.

I tried a mobile home by accident and now only do mobiles.

The returns crush stick built returns, in most cases.

We just sold one for $89,900 cash. Closes this coming Tuesday. $26k net.

And we've sold several over the past several months for $17k, $25K, $28k, $37k ... All cash - haven't financed any of those.

Just sayin'!

Sean Kremer · Answer

If your willing to take back financing with a down stroke, you can make a good residual income......I suggest rent to own if the regulations allow it. That's what i do and it makes it easier to get the non payers out easier so you can turn around and rent to own it again.

I had a mobile home that I bought and moved into a small town around me........I probably had around 10 thousand in it and I swear I sold and resold that trailer on a rent to own with $2500 down 8 times with over a 20 year period.

Generally people that live in mobile homes seem to always be one paycheck away from disaster in all aspects of their lives.....this means that Divorce, job loss, drugs, problem kids. etc.....seem to happen to these nice people frequently. I know this because I have experience in mobile home parks.

What this means is you will probably get the house back many times to fluff it up.....figure some new terms and re sell it.

If I told you how much money that old trailer house put into my pocket over the course of time, you would think I'm lying. Believe it or not its final fate ended with a tornado that obliterated it.....the tenants wanted nothing to do with the mess so I bought the land back from them for very little, fired up the cat and cleaned the yard up and resold it for double what I gave for it...(take that California:))  What is a lot worth in Beaver Crossing, Nebraska, (look it up, I'm not joking,)  20 years ago????

I paid $2500 dollars for it when I bought it and sold it for $5000 when the head hunters came to town to buy up lots in the destroyed town.  Probably could have got more but didn't want to get greedy...:) I would have kept the lot and bought another trailer house to move in so I could start the money machine again, but the village decided after the tornado that no individual mobile homes could be brought into the city anymore. Only houses with a foundation would be allowed. That was my sign to exit stage right.

People would literately thank me for taking the house back with no repercussions with only a short time left till payoff just because they were so upset with their current bad situation.....crazy...

Jo-Ann Lapin · Answer

I can answer this. Very lucartive. We have investors that have done well with these. I want to be clear. They have switched out the homes. In other words taken the old home of the foundation and replaced with lightly used or new. Great spread here in CA

Rocky V. · Answer

Definitely!  I have purchased and sold many and rent many as well.  Everyone needs a place to live and some choose mobile homes.  I only invest on ones attached to land.  See one which was closed on January 2016 at below link - $16K Pig turned into $84,900 Pork Chop.

https://www.biggerpockets.com/forums/223/topics/28...

Thomas S. · Answer

The biggest problem with mobiles is your client base. They have next to no money to buy meaning you have to finance. In addition most community owners do not allow renting of homes in their community.

The reward is generally too low to warrant the effort.

Account Closed · Answer

If you are going to do owner financing it can be very profitable.  It is not near as simple as it has been in the past but I know at least one person that is PROFITTING more than $500,000 a month doing it.

I would only buy ones that are attached to land.  Never buy them new.  Only buy them from HUD.

Ancel Pratt · Answer

Great insight. Thanks for sharing.

David Kozlowski · Answer

I'm interested in this opportunity. So instead of remodeling one it would be inexpensive to just replace witha new one? Jeez these things wear out like a pair of shoes huh? How is that a flip then?

Bill Neves · Answer

@Greg S.

Agreed. the last 3 we sold were to downsizing former homeowners who were simplifying things.

A nice park (the ones we work in) is somewhat like a condo. You can travel when you want, someone can watch your place and take care of the lawn and landscaping, if any.

We're in Phoenix for 3 months doing that exact thing. I know, poor me.

Flipping Mobile Homes...Does it work?

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