All Forum Posts by: Daniel Derrick

I deal in mobile homes in Portland, OR and they can be good investments in certain situations. Personally, I would not use them as rentals. Most MH’s are not built to last and therefore would result in very high maintenance and cap X rates. I would suggest listening to BP podcast 75 with John Fedro. He specializes in mobile homes and generally advises people to either flip them for cash or sell them on own financed payments over a set term. Just make sure you do your research thoroughly. Homes can vary in value greatly from park to park.

Hey Chad! Great job getting your hands on property at such a young age. You have an awesome future if you stick to it! I am in the Portland, Oregon market and right now I specialize mobile homes. My market is very much different than Florida, but renting out mobile homes is almost always ill-advised. They are depreciating assets that often deteriorate quickly, depending on the tenants you get....meaning high maintenance and cap X costs. Not to mention, buying and moving a mobile home is expensive and complicated. You would probably put in $20k minimally to buy and place the home. You would need many years of good rental income with low maintenance to recoup your initial investment. If I were you, I would sell the property and use the capital to scale up. You could also use the capital to start in mobile homes. Check out John Fedro’s YouTube channel. He was on BP episode 75. He has great content that would get you started and mobile homes in parks have a low cost of entry. Just a thought! I’m using mobile homes as capital generation to move into buy and hold investing. Good luck to you!

Wow! That deal sounds very familiar. I’m in Portland and I found a 2/2 1991 mobile home in a park on sale for $35k. I negotiated down to $20k with comps in the park going for $120k. I estimate the rehab to be $33k and that includes a roof and an added bedroom to make it a 3/2. Even after holding costs and expenses, I’m looking at a profit of $60k. We’re a month into the rehab and so far no budget busters. On the west coast with prices so high, even for mobile homes, there is money to be made on mobile homes. I’m already looking at if this is an anomaly or a system that can be expounded upon. Congrats on your success!

Hi guys, 
I have a deal under contract and I'm currently in the funding process with some private investors. One investor has asked for an investor fact sheet for the deal. I already have my financials through the BP flip calculator. Does anyone have an example of an investor fact sheet that I can look at? 

Thanks everyone!

I think you mean John Fedro and while I have not worked in his mentorship program, I have chatted with him several times via email and a phone call. He's super trustworthy and knows what he's talking about.

With all the information you just listed, you could probably build a spreadsheet and just input the data for each home. Basically you could make your own tool for analyzing deals.

I'm in!

I'm a newbie, so pardon the possibly rudimentary question, but does the hard money lender include rehab costs? I noticed you said 93K went into the rehab, did you front that? I looked it up as well and it's a beauty! Great job.

This can be a good deal, but personally I would not go the buy and hold rental route. Depending on the park and possible ARV, I would try to get them down to $1500-$2000. Put in a bit of sweat equity and try to sell it for the going rate in the park. Usually that's going to be 15K or more for a rehabbed mobile, depending on specific park and your area. Instead of treating it as a rental, sell the home and hold the note. You get the monthly payments for 5 years, you are not responsible for lot rent and you reduce your liability for fixing things that go wrong with it. At that point you are simply "the bank." That's what I would do.

Congrats man! It's a scary plunge but absolutely rewarding. And congrats on the baby...my wife is due in 5 weeks