All Forum Posts by: Bill Neves

@Chloe Adams @Tristan Gardner

Using a mobile home as a rental depends on where it is.

If on land you can rent them all day long.

Many people start doing mobile homes in a park to keep costs low. You pay space rent. You don't buy the land.

In the South (resort areas) you can rent and many people do that.

If you are in other areas, it depends on where you are. I am in the Pacific Northwest and NO PARK allows rentals that I am aware of.

You can sell on monthly payments which is very similar to rent without the property management headaches. I don't fix toilets anymore like when I had rentals.

@Charles Clay Jones

If someone is interested in mobile homes, I usually recommend starting in a park. You can start with very little cash. You pay rent on the park space but don't have to deal with the cost of the land. Keeps the cost down. Do a few like that to build up some cash and then you can easily go tackle a land project when you have more cash to work with. Make sense?

@Kenny Timerman Kenny - I'm sure you know most hard money people like real property. Mobile Homes are personal property so not as attractive. Many times you can find investors at REIA Real Estate Investor Association meetings. Several REIAs in Texas.

@Joyce Hall
21st Mortgage will lend on older than 1976. However, they have a lot of requirements and interest is higher than other manufactured home lenders. The other 2 big ones are CU Factory Built and Triad. Can google a local rep.

Older than 1976 cannot be legally moved down the road. MH mover won't be able to get a permit. So would have to be torn down and hauled away if getting rid of it. It varies by area but can cost $5k-$15k to demolish and haul off.

I was born in Fresno county. If someone was hauling it away to use on a farm they might get a variance. Lots of farmers would love to get a free mobile home. Save you the demo cost. A local MH Mover would know or be able to find out. Can call a mobile home dealer lot and they will know the local movers.

Hope that helps. Good luck! :-)

@Renee Yarbrough Also check with your lender if you are going that route. Some will and some will NOT lend if on a foundation. I interviewed one who only lends if NOT connected to the property or on a foundation. He can't do it if on a foundation.

@Angela Taylor-Carter

Mobile homes are obviously very different from traditional real estate. As rentals they are great for cash flow. One usually has less money in them, as a rental, compared to stick built. Those who like them are fine with the differences and appreciate several features of those differences.

As @Rachel H. mentioned the condition can be a challenge. 

As was mentioned by @Bailey Oryan they usually have a much higher ROI than stick built also. Quicker to turn and depending on the state, no title company needed.

Value is in the eye of the beholder. Many people/investors won't touch them as personal property and not actual real estate. Complaints include they go down in value, not in good areas, etc. Others have no problem with cash flow and great ROI.

Tell your investor to do their due diligence if interested. Have a mobile home contractor/handyman(woman) walk thru and point out what they see that might need work until they're used to them and good luck!

@John Fedro @Frank Barazda

Hi gents,

Just got back from a 5 week cross country 9000 mile road trip. Catching up on things.

Thank you @John Fedro for the kind words.

@Frank Barazda - Yes I'm actively doing mobile homes. Just finished and sold 2 the week before our trip. I'd be happy to visit with you about the business and discuss if it might be a good fit for you.

Please feel free to call me so we can discuss. 208-447-7091

Thank you for reaching out and talk to you soon.

Bill
The Mobile Home Blueprint
www.swift-homes.com

@Adi Conciu I am in the same area.

See comments above from @Rachel H. and @Colby Wise - good info.

Parks in this area don't allow rentals. That's more in the south. You can sell on payments, rent to own, owner finance. We've done it a lot.

We usually don't have the issue of people wanting a park vs. apartment. People we sell to WANT to live in parks. If they don't want to, we don't sell to them. Seems simple but ...

If there is any question, we compare prices to apartment rent. Affordable Housing. 2 or 3 bedroom here currently is $1500 and up. Park rents are usually under $700. There are some higher. I advise to avoid them. Harder to sell units since people always look at rent. It's a sellers market right now so not really an issue.

They will likely pay $400-$500 monthly payment for the home. That's $1100-$1200. That is well under apartment rent. And it's their own 4 walls, floor, ceiling, private yard for kids and pets, private parking, for 2 cars usually. No noisy neighbor on a common wall, public parking, no yard, etc. Beats apartment rent all day long.

Plus once paid off they just have park rent. Half or less than half of apartment rent.

Some people have said "I don't want to pay rent, better to buy a house". Good if they can. But they would also have property taxes. Park has rent. They're paying anyway.

You MUST do market analysis. Know your market. What are rents (apartment vs park), park vs park, sales prices, etc. In many areas there is very little inventory. Places are selling within a week or 2 of listing. We sold 2 last year BEFORE we were done. Put out signs during finish work and they were gone. Listings can be Realtor, Zillow, Craigslist, MHVillage.com, etc. 

Talk to realtors/dealers who sell mobile homes. As what they are seeing for sales. Not all do.

Also will the park allow flipping? Some do, some don't. If they don't, DO NOT QUIT. Others will allow it.

I don't tell them I'm an investor or flipper. Bad word. I say I fix places up and finance them. Now you are on the peer level of a bank or credit union instead of a flipper. Make sense?

I've been told no several times. In one park we just sold our 9th flip in April after they told me "No we don't allow that here", 6 years ago. In another I just sold 2 in June and July this year during the virus lockdown. That park told me "No" initially too. No, doesn't always mean No. 

Happy hunting. There are lots of deals in Portland area. Yell if you have any further questions.

Yessir. Just updated for 2020. www.swift-homes.com

@Garett Collins

Howdy.

Depends on what you want to do. 

Lots of normal investors will tell you to steer clear of mobile homes. We've done great with them.

Many communities will NOT allow renting. Residents in most communities must be residents. But they can buy with financing. You can get good cash flow, as you said, if you sell on payments.

Many retirees have cash to buy, as we've experienced.

So, good luck and happy hunting!

Yell if you have other questions.