All Forum Posts by: Mike Hodges

Thanks Karl, Would love to connect and discuss some potential! I sent you a request to connect. 

Thanks Benjamin! 

Sean, thanks for reaching out. Mobile home parks can be very profitable, however be sure to understand the different models.

Park owned homes, is where you own the land and the mobile home. The land is tangible and the mobile homes are considered Personal Property and titled like a automobile. Here you would collect all the rent, yet be responsible for all the repairs. With strict park rules, regulations, trash collection and yard maintenance will help attract higher end tenants. And of course have a high criteria to screen tenants. Credit and background checks, minimum 620 score, income verification, and limit the number of people living in the home.

Tenant Own Homes is popular as well, you own the land and collect lot rent! I've seen lot rents from $150 per month for low end trailer park trash, $350 to $450 for higher end parks depending on the amenities offered. Like yard maintenance, trash pick up etc. Here there is no high maintenance cost for repairing homes, but your lose some control over the quality of the tenants. It's very expensive to move a home out, in most cases you'll be paying for it and then it will take several months to replace the home.

My favorite model is the RV LOT Model, instead of replacing the lot with a mobile home set up a RV lot. The lot already has electrical and access to sewer. People will pay min $650 to $850 per month to set up their RV and live in it. With this model, you would be providing the power, water and access to cable or internet included in the lot rent. The power bill would be prorated based like you'll pay the first $125 and then bill them each month. This market is huge.

My only advise would be always searching for deals and running the number using the calculators the BP has. It's all math. 

I go on MobileHomeParkStore.com and search my state, and also Loopnet.com and search under multifamily filter mobile homes.

Once you find something and fell good about it, write it up and get going.

I'm planning a trip to Bentonville, Arkansas in May, It will be my 3rd time there. Great town and mountain biking trails. 

Hope this helps, keep me posted with your journey.

Mike

I think Fayetteville is a great market to invest in. I personally have several rentals there and have had great success. If this is your first deal, I would recommend  understanding the math and start using the deal calculators on every one. Also, it's best to have a lender ready to go so once you find the deal you can close quick. The first deal is always the hardest, but find one that works and jump in. Let's connect, I'd like to follow your journey!

Hello Bigger Pockets Community! 

Excited to be apart of this like minded group of investors. I'm interested in connecting with investors in the North Carolina market and share my knowledge and experience in generating cash flow properties. Real Estate investing has changed my life and I plan to help others do the same. Look forward to connecting with you! 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $75,000
Cash invested: $75,000
Sale price: $75,000

This deal included 3 mobile home on one lot. Each home has it's own septic and shared a well pump! This property generates $2,100 per month.

What made you interested in investing in this type of deal?

Cash flow

How did you find this deal and how did you negotiate it?

I saw this ad for sale by owner. Seller inherited property and wanted to sell it.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $44,000
Cash invested: $75,000

This was a huge undertaking, but the risk reward ratio worked out great. This property was in terrible condition, however will a little vision and hard work it paid off. This deal included a a older home and a mobile home each with a separate septic tank and county water. After extensive clean up and rehab these two rentals generates $1,700 per month.

What made you interested in investing in this type of deal?

Cash Flow!

How did you find this deal and how did you negotiate it?

Replied to a for sale by owner sign.

Lessons learned? Challenges?

Having a vision of the outcome and overlook the work that must be done to achieve it.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $65,000
Cash invested: $65,000

Purchased a 2 bedroom home with a separate 1 bedroom in law suite in the back yard. This turned into a 2 for 1 deal. Rents on these two homes is $1,700 per month.

What made you interested in investing in this type of deal?

Cash flow!

How did you find this deal and how did you negotiate it?

This was my first deal using a wholesaler. I saw his sign and called it. It turns out this was his first deal and he made a quick $10,000. A great win win for everyone!

How did you finance this deal?

This was a cash deal!

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $300,000
Cash invested: $50,000

Purchased a 12 unit park owned mobile home park on a 5 acres. Rents were extremely low at around $450 per month and generated $5,400 per month. However over the years any many upgrades this park generates over $10,000 today.

What made you interested in investing in this type of deal?

More doors and more cash flow.

How did you find this deal and how did you negotiate it?

I saw this for sell by owner on Craig's List. Met wit the seller many times and made an offer.

How did you finance this deal?

My local community bank.

Investment Info:

Mobile home buy & hold investment.

Purchase price: $40,000
Cash invested: $65,000

Purchased this 2 bedroom, 2 bath mobile home on a 2 acre lot with well and septic. The seller was moving out of state and needed to sell. After making the improvements to the property, it generates $995 per month in cash flow.

What made you interested in investing in this type of deal?

The return of cash on cash is really high.

How did you find this deal and how did you negotiate it?

This deal was referred by a friend