Mobile Home flip - out of State

[Todd Dexheimer]

I have done well north of 100 flips (buy, rehab and sell). Some have been real home runs and others not so much, but this recent deal takes the cake! My oldest brother has dabbled in REI for years and has talked to me about doing deals together. I have always told him if you find a deal that is good and need the money or a resource to call. A few months ago he called about a Mobile Home park in South Carolina (I am from Minnesota) that he found and could buy for $55k. We ran the numbers, did our due diligence and bought the property. The original plan was to replace all the homes and renovate the lot and 2 duplexes on the lot and then rent it out for a great return. The other viable option was to trash the park, renovate the duplexes and split the land into 4 lots and sell it that way. Instead doing all that I listed it on craigslist and was bombarded with inquiries and 3 offers. I struck a deal with a local guy to buy the property for $137,500 and close in 21 days.

The cool thing is my brother doesn't have a lot of money, but with this deal I split the profit with him, which gave him a nice little profit and some extra capital (hopefully he re-invests it)!

The numbers:

Purchase: $55,000

Expenses: $6,000

Sale Price: $137500

Profit in 21 days: $76,500

Plus I got to see my brother (which is rare) and do a successful deal with him, which has helped us bond as well - he is 14 years older than me.

One more great thing is that the buyer has a great opportunity to make a nice ROI. Hopefully he has success and turns a vacant eye sore into a profit center for himself and a wonderful community for people to live in.