Manufactured Home Learning Experience!

[Schuyler Witt]

Investment Info:

Mobile home buy & hold investment in Rocky Mount.

Purchase price: $82,000
Cash invested: $82,000
Sale price: $60,000

We purchased two manufactured homes for $31,000 each and spent $10,000 in set up costs each. The units cash flowed $234 per unit. We learned that for manufactured home investing to be worth our time (a personal choice) we need to own the land and not just the building/mobile home.

What made you interested in investing in this type of deal?

A successful investor shared with us the opportunity to rent lots from his mobile home park.

How did you finance this deal?

HELOC from my first two rentals that I owned free and clear.

Lessons learned? Challenges?

Investing in mobile homes is an decent source of cash flow but without owning the land is not something we want in our portfolio. For our preferences, to make a mobile home deal worthwhile we want to own the park that accompanies the homes!