Mobile homes, worth it?

Question

I’m looking to start somewhere with a low cost budget in real estate. Can anyone provide insight if it’s beneficial to start off with mobile homes?

Melodee Lucido · Answer

@Clifford Datan I reeeeallly advise for you to listen to (re-read) the post by @Curt Smith. When you are brand new (I will never forget those days!!) or when you are entering a new niche, you never know many of the dozens of pitfalls that could occur.

@Brandon Turner has a fantastic book called How to Buy Real Estate With No or Little Down (something close to that). I highly recommend it before you move forward on any niche.

You are in the right place with wonderful, helpful people. There isn't any rush---> there will always be a property (or 100) for you when you are ready.

Best of Success!

Curt Smith · Answer

Search on BP for lonnie deals;  MHs in parks.  Not as simple as it seems with more risks then it seems.

AAND you posted in the wrong group, there is a MH/parks group.  Not your fault, idiots BP website design makes it almost impossible to post a new post in the right group.   This being tipped, go read that forum going back.  Search that forum for MHs in parks.  I bought 18 or so double wides on their own land in neighborhoods much lie a real house but much cheaper.  Even double wides have issues, down sides, problems, management problems due to lower class of tenants etc etc.

Bottom line, being a part owner in a 70 pad lot rent park and own 18 or so doublewides.   Buying and renting single wides in parks has more moving parts then a house on its own land and risks.  You have to learn before you leap IMHO.

My alternative suggestoin is to study up on Zero Down deals, buy BPs book.  Today through 2021 will ramp up to be one of the best periods in our life times for:  buying from stressed owners via lease option,  sub-to, then turning that house around and selling on lease and option (rent to own), or straight rent like me,,,, or buy subject to, my main focus for next 24 mo.

Study up on creative financing, all forms.  Google / youtube:  Joe McCall, Joe Crump, Joe Bodeck (lots of Joes teaching LO/WLO/subto).  These aare all good guys, I've bought their courses all are great and cheap in the scheme.   Having done all these deal scenarios, MHs etc,  I recommend you learn creative financed deal structureing then start marketing for low equity stressed sellers... Which is whole other thread.  You posted in the marketing group (errantly IMHO) start by searching here on:  marketing for low equity.   Markreting for long days on market, expireds, financial stress etc.  I feel this will pay off $$$$$$ over your carrier 100x more then MHs in parks.   Although as said a few here have made MHs in parks their carrier.  I've done enough MHs to know thats not my gig.

Read the paper I linked off my profile 1st paragraph;  buying a bullet proof portfolio.   MHs are a rough and high effort gig.  You should do one to learn this first hand.  Nothing like 1st hand problems.   LOL!!  Good luck.

Melodee Lucido · Answer

@Clifford Datan I am happy you enjoyed the book! Have you watched the BP podcasts with Brandon Turner and David Greene on Youtube? They are so darn awesome!! There is also one for Rookies that I love. Immersion is the best way to learn. If you start there I believe something will jump up for you---you know, light you up. CREI is work and we are always (allllways) learning. I've learned so much from being in action and doing deals.

I'm always happy to help :-) Sometimes it's just good to have someone to sort things through with.

All the best to you!

Clifford Datan · Answer

@Melodee Lucido

Thank you so much I actually got the book after you hah mentioned it and I’m almost done reading it. It’s very informative and the methods of how to start investing on a property are very insightful. I appreciate sharing it with me and now I just need to somehow start and find my direction of where to go.

Clifford Datan · Answer

@Curt Smith this is very insightful and I appreciate sharing this with me. It’s great to hear stories and examples of what it is to look for in tells of business approach in Real Estate. I agree that I am really in a learning curve at the moment but I also want to be practical at sometime. I am grateful and will keep in the discussion here as well as the resources to look into, thanks.

Curt Smith · Answer

@Clifford Datan.  You need education!   My experience in owning a park, owning 18 or so double wides, gone to MH regional ocnferences, read here for may years of the few folks who have been successful in loonie deals and made it their career, also said above;  there's challenges and you need educatoin.   Its not as easy as it seams.  FWIW in the SE in the class C/D parks that the owner will let you operate (this contains a big hint) sellers are stuck may advertise in craigslist (mainly where you;l find MHs) for $10k, $15k maybe more.   The pro's call and visit those sellers with cash in their pocket, $2k in the left pocket, another $1k in the right pocket.   After looking at the home, and asking whats the least you'd take,,, back and forth,  just pull out the $2k and say this is what I have would you take it (this is after you;ve inspected the title (like a car title)).   50% who ask $15k, $10k will actually take small sums like $2k, 3k, 5k at most.  In the North MHs have a higher value especially out west, I'm just sharing a story to ingnore the sellers ask!    This is just one example of you don't know what you don't know.  LOL!!   I typically fixed up my double wide MHs for $10k or so.   I replaced the central HVAC, paint, carpet.  In MHs I left the fixtures of couse the cheap cabinets etc etc.  Just causmetic fixing.  Rarely but some times a new roof.  In my more recent doublwides, newwer then mid 1990s, I never had soft sub-floor.  But a leaking toilet or sink can soften floors here and there especially in rentals in parks.  Tenants don't care and let something go for a long time.

The most you don't know is how to deal with the park and manager, and how to skip many parks as bad places to try to own/manage MHs.   Many parks cut out external investors and trap the residents who own their homes.  Forceing the owners to abandon their homes (preditory and very very bad but fairly common in class c/d parks) or they buy for pennies like I gave an example.  So they don't want compitition from an investor.   Buy the books, read up, door knock on parks.  You need to go in person.  Just use the phone to mak the appointment.https://www.amazon.com/s?k=investing+in+mobile+homes&ref=nb_sb_noss_2

I looked into lonnie deals, owning MHs in parks, and deciced too risky.  But many learn the risks and make a go of it.  I got into owning MHs on their own land and buying a park.

After all this, for low cash in, the best deals in town are creative, sub-to, lease optoin or starter homes.  Not buying rough asset types for cheap.  I admit this is just my optinion from my experience here in the SE.

Clifford Datan · Answer

@Jerryll Noorden

We thought for it to be just the purchase price and add more funding when it comes to rehab. I’m honestly still new to this so any input for what it should be is appreciated.

Jerryll Noorden · Answer

Is that $10K for repairs only or also purchase price?

Clifford Datan · Answer

@Jerryll Noorden I appreciate it, we found a mobile home that seems pretty much affordable within our area. We are looking to start off with $10k as our budget and seeing if we can leverage that as a way to get a mobile home and rent it out.

Clifford Datan · Answer

@Curt Smith I appreciate the information, I’ll look into researching more of MH topic.

Mobile homes, worth it?

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