All Forum Posts by: Jerry Lucker

@Jay Hardebeck

A lot depends on what type of home you want to live in. An upscale home will cost a bundle. The maintenance/upkeep, property taxes, and insurance will be substantial. You are responsible for the infrastructure on your property -electric, water, sewer, etc.

A modest home owned where you rent the land will cost a lot less. The maintenance, taxes, and insurance will be a lot less. You will not be responsible for any electrical, water, sewer, etc. issues that might come up on the lot.

In addition, many people like the communities where the house sits.

Many communities are gated. Most won’t allow felons (sex offenders, etc.) to reside in them. Many have community centers, tennis/pickle ball courts, swimming pools, etc.

The residents enjoy community and comradery that usually doesn’t exist in most neighborhoods.

@Erica Bader

Mobile homes on their own land, not in parks, have the option of having a title or not.

One consideration is taxes. If they have a title the home will be taxed as personal property, the land taxed as real estate. If the home is title eliminated the property, home and land, will be taxed as one entity, real estate. The taxes will be different depending on which way the title is handled.

Financing is usually better if the units are entirely real estate.

@Anna Bee

Yes - probably. Depends on the situation. I’ve invested in mobiles/manufactured homes for over 20 years. The average profit margins for flips - mobile homes in parks - consistently have been 50% to 200%.

I took cash for most of them; yes, the buyers can obtain financing. I carried contracts on a few but I don’t recommend it.

I own several rental Mobile homes, units on their own land. Purchased for 1/3 to 1/2 of what a comparable square footage stick built would have cost - I get close to the same rent.

I rent for 15 to 20 years then sell and carry the contract for another 20. Appreciation/ Depreciation are not significant factors.

Most investors don’t understand this niche so don’t get involved and have inaccurate opinions.

Mobile homes take a lot less money, are easier and quicker to buy and sell (personal property like a car, not real estate), have much better ROI, and there's little competition.

If you make the effort to get past the myths and misconceptions you just may discover a gold mine :)

@Jacqueline Romero

I don’t think you shared enough specific information to get any valuable feedback. I’m sure there are plenty of us with good advice if we understood your situation in detail.

Are you looking for mobile homes on their own land or in a mobile home park? Are you looking for existing units or looking to place mobile homes where you want them? Makes a lot of difference.

Each to his own. I suspect that some landlords who have issues with tenants may also have issues with friends and family also - maybe people in general. I suggest being upfront and direct with everyone always. Do what you have to with a smile and resolve. Take no guff, take no prisoners. Be fair. Be firm. Be consistent.

As a rehabber for 20+ years I would think that a heavy duty, properly installed weather strip would easily do the trick and last a lot longer than than you've been led to believe. Fast, inexpensive, effective.

Welcome :) You might start by doing what I did 20 years ago and am still doing - flipping mobile homes in mobile home parks. Why? I'll give you 3 quick typical examples. 

1) Purchased home for $5,000. Pretty up for $3,000. Total in $8,000. Sold for $24,000. 

2) Purchased home for $10,000. Pretty up for $10,000. Total in $20,000. Sold for $40,000. 

3) Purchased home for $50,000. Pretty up for $50,000. Total in $100,000. Sold for $170,000.

Mobile homes in parks are personal property, not real estate. Bought and sold like a car. Fast, simple, investment level choice, outstanding profit margins, not a lot of competition (most investors have no idea how or why this niche housing segment works).

Take the cash you make and invest in income producing real estate :)

It seems like a thorough knowledge of the business and the market plus consistent searching will turn up deals anywhere. 

Congratulations! I've been flipping mobile homes in parks for 20 years. Everything you shared is 100% accurate. The profit margins are excellent, 50% to 200%. With these numbers you can hire quality contractors, present an excellent product, and reap the reward of a handsome sale price. (The cash generated allowed me to invest in a nice portfolio of real estate rentals).