Shifting Focus
I've recently shifted my focus from SFR's to Mobile Homes. I recently bought my 1st mobile home and am pleased with the deal. The main reason I moved to mobile home invesing is the cost of the deal. One of my goals is to develop $3 - $5k a month in passive income. This will be accomplished with rentals I purchase and hold. The average SFR costs around $100k for a decent home whereas a good rental mobile home costs around $15k. The net monthly positive cash flow for both is about the same. The mobile home I bought for instance fully rehabbed, set up on a lot and with a tenant in place costs me $15,500 with a rent of $600 and lot fee of $195. So my net each month is $405 which equals to 31.3% cash on cash.
I am preparing to buy another mobile home in the same park from the same seller in 2 weeks. My overall goal is have 8 - 12 of these in the next 12 months to reach my passive income goal.
Comments (5)
Robert how are these investments going for u these days
Stephen Moore, almost 12 years ago
I also found this to be true in the last couple of years. I can do these deals all cash. They cost very little and cash flow great. If they get trashed they repair and update easily. Good post Robert.
Greg B., over 13 years ago
Im glad to read this too, Robert. Two of my properties have mobile/mfg houses on them. I bought them unawares of the 'stigma' that mobile homes seem to have. One, a singlewide (70s era but totally rewired in copper) is on a drop dead gorgeous lot. It had a few squatters in there during escrow and they managed to trash it pretty bad and then pile up code violations. Ther sellers (I bought directly from them) were stunned and didnt want to face the 100 a day penalty. I evicted the tenants for them. Now all cleaned up this rents at 650 a month and is one of my favorite properties. Another private seller had a 90s mfg home. Its a work in progress now, but the numbers are still so low that I hope for the same. Im on the lookout for other mobiles up in my area, As well as the standard SFRs.
Shelley F., over 13 years ago
Robert, do you want to own/rent some in a 55+ community? I have a couple in Shadow Mountain Village in Scottsdale. Some need work but the rents here average $800. mo. email me. [email protected]
Ric Olsen, over 13 years ago
Very cool, Robert. I think that mobile homes are the Rodney Dangerfield of the investing business. They simply don't get the respect. Keep us posted as things develop in this new niche for you.
Joshua Dorkin, over 13 years ago