All Forum Posts by: Chris C.

I deal almost exclusively with Manufactured homes.  I do not believe you can beat the price to rent ratio.

Couple of my experiences: (I only buy on land and not in parks.)

1. Only rent double wides.  To much turn over in single wides.
   1. I have had great success owner financing single wides and renting the lots though.
2. Generally most of my homes are mid 90's or newer.
3. I have found nothing that cost any more to repair than a conventional home save a few receptacles and light switches.
   1. I convert this to standard types if they need replacing.
4. I generally have about 40k all in for a unit that rents for about $800.  These homes are generally worth between 60-80k retail so I do have instant equity just like a stick built home.

My opinion on appreciation is that modern manufactured homes that are 5-15 years old appreciate close to the same rate as stick built homes.  The entire concept is that they are a cheaper alternative per sf to stick built homes.  In my experience there value trails behind stick built homes as a cheaper option for those that can't afford stick built.  

Why 5-15 years old?  Brand new homes do lose a decent amount of value in the first 5 years.  Only about 15 maybe 20 years ago did the homes consistently get vinyl siding and shingle roofs with a look that does not look dated.  They are like a conventional ranch home that consistently attracts buyers due to there affordability and not terribly dated look.  Going forward model year 2000 double wides and newer, that are well maintained, will increase in value.  Worse case at the rate of inflation and best case at the rate of overall housing values.

The biggest challenge with manufactured homes is financing.  I have a bank that will finance up to 2 for an investor but for the most part financing for an investor is non existent.  I use either private funds are mostly just all cash for my rental units.

As noted all these observations are for homes with land.  Completely different animal on rented lots.

I buy all my own finish materials.  Faucets, light fixtures, receptacles, light switches, paint, carpet, vinyl, etc.  I do this because we can save a significant amount of money if you have a good system in place.  We buy everything from Lowes so they give us price breaks plus they deliver the materials to the job site.  Our contract with contractors stipulates exactly what we provide and that they are to provide nails, caulk, tape, mud, smaller items like that.  Some contractors are hesitant at first but when they realize we always have the materials on site when they need them then they relax and actually like working with us.

I don't provide shingles to roofers, gutters obviously, and other similar items.

Start your mailing campaign!!!  You have J Scotts book so start finding deals and do it.  If you can't financially do the rehab yet, don't have time, whatever then wholesale anything you find.  

JUST START FROM YOUR DESK WITH YOUR SPARE TIME!!!!!

That's exactly what I did.  With J Scotts book and my spare time at my desk I started.  4 or 5 years later and my wife and I did 10 flips last year and are on pace for 15 this year.

I buy everything from Lowes.  I don't have time to search for hours to save a $100 bucks. 

I pay about $2 per sf for licensed and insured guys.  That accounts for the normal repairs that always have to be made also.  Holes in walls, removing wall paper, dark trim etc.

I outsource all my rehab and rental work.  I started with the mindset that I was not creating myself a new job and if it could not be done this way then I would not do it.

That being said I am handy with tools and know a reasonable amount about home repair.  I would think it would be difficult to supervise contractors without some basic knowledge of how a job should be done.

Feel free to contact me to discuss further. I have had some thoughts on assisting investors in your situation and would like to bounce some ideas off you.  Especially since you are an IT guy which is very similar to my full time job.

No, sheet vinyl is what I use. 

https://www.lowes.com/pd/Armstrong-Pickwick-Landin...

@Patrick Philip You have the typical new rehabbers attitude that you are going to live in the home.  This is a business and a business does not care about your allergies in a home you will never live in.  Also never disagree with someone who has flipped as many homes as J Scott.  With, I assume, zero rehabs you do not have the experience to even have an opinion. My entire business is based off J Scotts books and I have been very successful.

I use flat very light gray on walls.  Semi gloss bright white on trim.  Standard inexpensive ceiling paint on ceilings and in closets.

Vinyl in kitchens and baths.

Very nice laminate in the first room the prospective buyers walk into.

Carpet everywhere else.

Average days on market for last 10 flips is 4 days. All sold at full asking on all but 1.  Those are the stats to be looking for in a rehab business.

These are first time buyer properties.  Scale up finishes based on your prospective buyers experience buying homes not necessarily price.  First time market can get away with lower finishes than upper class markets.

I hope this was helpfully and I do not intend it to be condescending but business people have to be blunt.

We are in line with JScott.  We do 60/40 splits.  We find, rehab, and sell the property for 60.  The other 40 is for any cash invested.  This way we also get a return on any cash we have to put into the deal.  This is a very expensive way to finance flipping and we are going to more traditional loans as we get more experienced.  We use all our profits to buy more rentals.

We use Podio, google sheets, and Quickbooks.  My wife is our current project manager because I work full time but I have got to get where Jay Scott is.