Mobile Home Fix and Flip

[Quynn Costello]

Investment Info:

Mobile home fix & flip investment.

Purchase price: $39,000
Cash invested: $100,000
Sale price: $190,000

Our most recent flip in Shingle Springs, CA that we took down to the studs and built a luxury dream home in its place. The entire project from start to finish took 11 weeks with a team of 2 contractors. Below is a link to some before and after photos taken from the same spot and the same angle 11 weeks apart:

https://photos.app.goo.gl/B7c3mAsAq6BZib4r5

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

We have found a lot of success in the past two years fixing and flipping mobile homes in parks for a profit. We originally stumbled upon this idea almost by accident, and quickly realized there is a largely underserved market in which our style and expertise fit right in.

How did you find this deal and how did you negotiate it?

We started out working with a realtor (not common for us, but we were in a new place and wanted to leverage all the help we could get) who introduced us to the park this property was in. She did not end up finding us this deal as she was solely working off the MLS, but while driving through the park this particular home caught our attention and we reached out to the HCD to inquire about its condition. We were able to negotiate a great purchase price as the seller was in "distress"

How did you finance this deal?

We began to network with lenders in the area and found a private money lender who agreed to give us 90% LTV on the purchase of the property, and we funded the rehab costs with a line of credit.

How did you add value to the deal?

We essentially stripped the property down to the studs and focused a large chunk of our rehab budget on the structural and essential aspects (roof, HVAC, drywall, siding, plumbing, electrical, etc.), and put the rest of our money to work on opening up the floor plan and adding aesthetically pleasing features to the space.

What was the outcome?

We were very pleased with the speed in which we were able to finish the project (11 weeks), as we had a great team of contractors alongside us. We were also fortunate to have received a full price cash offer within the first 30 days our property was back on the market, which ultimately created a new comp for the neighborhood. All in all, it could have been a risky investment, but we did our due diligence and it paid off!

Lessons learned? Challenges?

Extreme heat waves, COVID, and Northern California fires were some of our greatest challenges to say the least that impacted different aspects of our rehab and selling process. Our biggest lesson learned during this project was the importance of identifying the strengths and weaknesses of each contributing person of our team in order to execute future projects more efficiently.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Our partners on this particular project have asked to remain anonymous.