My personal input as a mobile home investor would be to educate yourself and network to learn about as many niches as you can. Once you feel you have a good understanding of all of them THEN you can pick your niche and jump in head first. I personally feel you should pick your niche due to your motivations and strengths rather than what you feel might be available to you.
Learning about all niches and the tools used will help your success in the niche you do end up choosing. For instance, if you choose to buy/sell mobile homes you'll use many of the same techniques a landlord might use, or a wholesaler of SF homes, etc.
If you do become interested in mobile homes there are many sites out there for education and networking (including this one) as well as books, including author Lonnie Scruggs and others.
Best of luck!
Find someone local that is "doing it" and, figure out how to work with or for them for a while. "It" can be whatever niche you would like to explore!
Welcome to BP @Alex Parra .
Great advice from Marc and Sam. Soak up the education and advice from local investors, blog posts here on BP, and anyone else actively investing in deals "you think" you want to be involved with.
Then, after some education and consideration you will have the clarity to decide how you wish to move forward. When you do "move forward" it is my advice for you to go-big and sprint full-speed ahead!
So are you talking about wholesailing or trying to rehab and flip property?
My thoughts are to always go with a small residential home instead of a mobile home.
Mobile homes can be good for cash flow if you watch your numbers carefully and your cash flow isn't destroyed by the mobile home park's fees (a park in Rancho Mirage where my former partner now lives has increased its fees every six months for the past three years and is now up to $620/month), but mobile homes generally do not increase in value. I realize you are in SoCal (I lived in SoCal for 15 years - Palm Springs area) and mobile homes did see an increase in value, but they were the last type dwelling to see an increase in value.
If at all possible, find a small 3/2 home with at least a 1 car garage or carport, (2 car garage would be even better), minimum of 1,000 sq. ft., where you can realize a 100% return on capital gain and at least a 10% cash-on-cash return that's cash flowing a minimum of $300/month. It won't be easy at first, but the deals are out there. That way you've doubled the value of your dollars at the time of purchase, are cash flowing, and SoCal being what it is you should see an increase in the value of the property, but that increase in value is speculative.
By purchasing small stick-built homes with the appropriate returns, you're not only investing and making money, but your exit strategy is much easier. A single family residence usually sells faster and easier than a mobile home.
Just my two cents.
Thank you all for the great advice I think what I'm going to do is start looking for some local residential homes I have a cousin out in Texas who does property managing I'm going to ask him for some advice and go from there
Is there any options as fare as down payment ? I hear you can do deals where the broker will help you with the down payment but you pay the broker back with interest?
I hope you are still on your path to acquiring your first property. I just thought I would add that you should consider trying to acquire a house "subject to", which is basically where they deed you the property, the mortgage remains in their name, and you take over making their payments. A couple things to consider:
This does not require a real estate broker
only a small percentage of homeowners are going to be open to this, as they must be in a position where it is worth it to them to walk away from the property, so you are going to have to find them, or put out ads inviting them to find you.
although a person might be willing to walk away from their payments, it doesn't necessarily mean that they will have the funds to do so. You should be prepared to give them money for moving expenses, and to pay any past dues note on the property. Hope this helps
Alex, what nobody is talking about is the fact that Foremost Insurance (not affiliated) is the only company currently providing homeowners insurance for manufactured homes. They have a little-known clause in their policy stating that in order to be fully covered, only the owner is allowed to occupy the home. Food for thought.
While that comment may be true on a single policy it is not on a commercial policy for multiple homes. I don't believe it to be true on a single policy but I could be wrong. And maybe "fully covered" leaves room for interpretation as with most things in insurance.
And you are correct in that it can be hard to find insurers for manufactured homes but they are out there. Sometimes it takes a local company but there are others in addition to Foremost that will cover the homes - Foremost is the largest insurer of manufactured homes.
There are plenty of ways...wholeselling/flip/buy and hold...depending on how much capital you currently have/DTI/provable income would determine what the best route is for you to start.
I'm 22 bought my first investment property in Suisun City, CA (when i was 21) and about to buy my 2nd investment property most likely in Oakland, CA.
A place you can take a look if you want to buy and hold with little DP is homepath homes since it only requires investors to place 10% down.
I agree with @Timothy Leong , and had a somewhat similar situation buying in Richmond in the Bay Area, though started a few later years in life..
I would also throw out there that FHA is a great way to put a low downpayment on a 4plex if you don't mind moving there.
Homepath at 10% down is nice, although you can't do 10% for 2-4 units (SFH only), and I've found the prices to be oftentimes quite a bit higher in the Bay Area for Homepath properties than for similar properties that are not offered with advantageous financing by Homepath.. Having said that, my 4plex was Homepath, and used an FHA loan in "First Look" period.. So go figure!
We personally got started using personal property loans. We bought a house as a personal property that we hoped to rent later. I know many people on Biggerpockets bought a 2-4 plex and than rented the other side out.