All Forum Posts by: Quynn Costello

@Dave Peterson thank you so much! This particular home is located in a park, so the land is rented. Also, I find that as a huge compliment that you say it looks large from the photos because it is actually 960 square feet! Especially where we did this flip, that number alone tends to be a huge turnoff to a buyer. Because of this, our main objective was to open up the space and really maximize the space we had to work with to make this a viable option for anyone! Thank you for the feedback 😁

@Alan Fortin thank you so much!! I absolutely agree, there is a unique opportunity here and we are anxious to see how this can pan out on a larger scale in other states/markets as well

@Derek Jones that’s a great question, and in fact another viable business model in this market! In general, a new mobile home that would be similar to this one could run about 90k-120k. The biggest difference would be in the custom features such as the shower and faucet fixtures, and the front deck/awning we added. Those are not things that come standard in a new mobile home off the dealer lot but create more of an incentive for buyers (and even investors) in our market. Here in CA we have found a unique opportunity in the senior community in which they are currently downsizing from their large homes with lots of equity, and want to remain in the same city. By updating these mobile homes more custom “residential” touches, we have really captured their attention. In another market, however, I would say that relocating (or discarding of) the old mobile home and putting a brand new one in its place would be a more viable and efficient business model, especially if you can buy the older one at the right price! Sorry if this was way too much information, but I thought it was a great question and love talking about these opportunities! 😁

@Jo-Ann Lapin Thank you so much! We feel very fortunate to have stumbled upon this discovery of mobile home fix & flips, and although we are primarily flipping in parks for the time being we are definitely looking into pursuing this method with manufactured homes on land. We feel this is a better business model for buy and hold, while the parks offer an better opportunity for buy and sell 😊

@Michele Meece thank you so much! We really enjoyed the process and seeing the end result side-by-side like that is always fun. I would say you actually might have parks like that in NC, they just might be hiding a little. We thought the same thing about Sacramento and then ended up stumbling on a park in a city where there is a large senior community retiring and downsizing out of their mansions (literally), and they don’t want to leave the city. There are gems like that everywhere, it just takes a little “ears to the ground” and persistence but I bet you will find it! 😁

@Rachel H. Thank you so much for your kind words! Yes, having a great team of contractors was our golden ticket to making this a success and we hope to continue with them! Can’t wait to see all of your real estate success as well!

Investment Info:

Mobile home fix & flip investment.

Purchase price: $39,000
Cash invested: $100,000
Sale price: $190,000

Our most recent flip in Shingle Springs, CA that we took down to the studs and built a luxury dream home in its place. The entire project from start to finish took 11 weeks with a team of 2 contractors. Below is a link to some before and after photos taken from the same spot and the same angle 11 weeks apart:

https://photos.app.goo.gl/B7c3mAsAq6BZib4r5

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

We have found a lot of success in the past two years fixing and flipping mobile homes in parks for a profit. We originally stumbled upon this idea almost by accident, and quickly realized there is a largely underserved market in which our style and expertise fit right in.

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

We started out working with a realtor (not common for us, but we were in a new place and wanted to leverage all the help we could get) who introduced us to the park this property was in. She did not end up finding us this deal as she was solely working off the MLS, but while driving through the park this particular home caught our attention and we reached out to the HCD to inquire about its condition. We were able to negotiate a great purchase price as the seller was in "distress"

How did you finance this deal?

We began to network with lenders in the area and found a private money lender who agreed to give us 90% LTV on the purchase of the property, and we funded the rehab costs with a line of credit.

How did you add value to the deal?

We essentially stripped the property down to the studs and focused a large chunk of our rehab budget on the structural and essential aspects (roof, HVAC, drywall, siding, plumbing, electrical, etc.), and put the rest of our money to work on opening up the floor plan and adding aesthetically pleasing features to the space.

What was the outcome?

We were very pleased with the speed in which we were able to finish the project (11 weeks), as we had a great team of contractors alongside us. We were also fortunate to have received a full price cash offer within the first 30 days our property was back on the market, which ultimately created a new comp for the neighborhood. All in all, it could have been a risky investment, but we did our due diligence and it paid off!

Lessons learned? Challenges?

Extreme heat waves, COVID, and Northern California fires were some of our greatest challenges to say the least that impacted different aspects of our rehab and selling process. Our biggest lesson learned during this project was the importance of identifying the strengths and weaknesses of each contributing person of our team in order to execute future projects more efficiently.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Our partners on this particular project have asked to remain anonymous.

I am currently in search of a hard money lender who is comfortable partnering with my partner and I on a mobile home flip. We have had great success flipping mobile homes in the past two years, with our last flip selling for over 50k profit with a cash offer made in less than 30 days. The market is hot for mobile homes and we have found a park in which we are thriving! We currently have our eye on a mobile home with the opportunity for even higher profit potential and it would be in our best interest to partner with a hard money lender for 80-90% loan to value on the purchase and rehab costs for the home. We have plans and a team in place for a quick turnaround (contractors and real estate agents on deck) and are just looking to secure the financing to pull the trigger! If any of you have ever used a hard money loan to flip mobile homes, or know where to find one, please let us know!. Also, if you are a hard money lender who has never considered mobile home flips as a part of your portfolio, let's connect! 

I have pasted a link to a google photos album displaying the before and after photos of our most recent flip that we completed a couple weeks ago to give you an idea of what our quality of work looks like:

https://photos.app.goo.gl/B7c3...