There is a lot of negative opinions about mobile homes. As a beginner with barely any capital and experience, that seems to suitable to what i can afford. Plus, mobile homes are mainly in 55+ neighborhoods. I need some legit tips on the Pros and Cons of this niche from people with actual experience.
@Marlisa O. check out the podcast with John Fedro. I think it was 3-4 podcasts ago.
I have no actual experience but i do know this. People in all niches of real estate are doing well and there are many that are not. Doesn't matter what it is.
Mobile Homes, Single Family Homes, Units, commercial, condos, townhomes etc.....
Location is important. I was born and raised out side of Los Angeles. The lot rents are insane in that area.
Here is a pdf link i found on the internet how to make money buying and selling mobile homes. free link
Good Luck to you!
I only own one mobile home but I also own the land that it sits on. The pros to me are smaller units, cheaper than buying a stick built. If you get tired of it or its gone past the point of repair haul it off to scrap. Cons they can be eye sores if not well maintained municipalities don't like them. The value of a mobil home diminishes to next to nothing. I was actually given the one that I own but I love it and its one of my highest cash flowing rentals. I will purchase more in the future but wouldn't consider owning one on someone else's lot. Currently working on a raw land deal that may end up with 4 trailers.
Good comments everyone. Good resource Gerald.
Welcome to BP Marlisa. Glad to see you are taking an interest in mobile home investments for creating value and profit. There are many pros and many cons to investing in these types of properties. There is far to much to discus on this thread however I am sure others will give their input as well on the matter. I have provided a link below to many Mh articles on this site.
In your area of Ca you do have many senor parks compared to all-ages allowed. For this reason it is very important you verify a resale demand in your area and how much buyers will pay. From here you can begin to look to help local sellers and park managers. Additionally, inside and especially outside of your immediate area you will also find many all-ages family welcoming mobile home parks to consider investing within, if the PMs allow you there.
With that said here are some past articles I have written for this site almost specifically about mobile home investing. http://www.biggerpockets.com/renewsblog/author/joh... I hope this provides you some extra help and insights. If you have any specific MH investing questions from here don't hesitate to ask.
All the best,
There is a whole section here on Mobile Homes & Mobile Home Park Investing. You might want to check it out.
I've invested in Mobile Home Notes and am now renting travel trailers out.
Hi Marlisa, I invest in mobile homes and think they are a great way to begin as you do not need a lot of capital to invest and you will make a profit your first month. Look up all age parks. They are easier to rent in than a 55+, why limit your clientele.
You begin by calling all the mobile home parks in your area and ask them are you all age or 55+, do you allow rentals, how much is your lot rent. When you get narrowed down to 2-3 parks that you would invest in and you will go to the park and drive slowly down the streets looking for sale signs in the windows. Write down the numbers and knock on the door to see if they are home and you can see inside.
When you get one you want to buy, don't give the asking price remember to negotiate. Now this is something you will learn by trial and error, but remember, even if it is not in tip top shape, you can fix it up (make sure you have a $1000-$1500 budget for this), and still make nothing but money. Watch your lot rents. If you do not make a minimum of $200 profit it is a bad investment. Do not do it.
Usually mobiles pay for themselves (in Florida) within 1-2 years then it is all profit. Personally, I do not think this way. I think that if I invest $5000 and I make $400 a month, with that same $5000 I'd be lucky to make $5 interest in one year in a bank so if you can take that same $5000 and make $400 a month, that is fantastic.
So you are in what I call, the information gathering stage, you need to find your 3 or so parks, find out the costs of buying a unit, add on repairs, then do the math and see if you make at least $200 a month if not more.
Good Luck to you,
CASHFLOW! I own several standard SFH and do not see the cashflow that my mobile homes bring. It is easy to find a 2%er. Here is a pic of my most recent purchase 7/1/14 on the courthouse steps.
You are not thinking "creative finance" which often requires zero cash (ignoring marketing costs). Search and study these REI tactics:
- creative finance
- buying with a lease option
- wholesaling lease options
- buying subject to the existing financing
I buy double wides on land so I say the above from an experienced vantage point, and have a bunch of them in rent to own. I'd never try to rent these things due to the problems with renter mentality. But we have excellent luck with rent to own and we do owner financing to put the tenant into a mortgage after 12 months.
I don't recommend mobile homes to beginners especially mobiles in parks. I do think you'd be much better off becoming the whole sale lease option queen in your area. :)
Great to hear your interest in this niche!
The good thing about mobile homes is that folks can get in with a smaller amount of capital than your typical single family home deal in general. If you get into a small deal and find out it's not for you, it's easier to get out of than a larger one. Plus, your investment is smaller so the risk is less.
One of the things I recommend to new folks just starting out is to do a small deal and see if they like it. Some have gone this route only to find it was not for them. So, they got in and out of the deal fairly quickly.
On the other hand, there are others who have enjoyed this niche and have pushed forward. Ultimately, it boils down to your personality and seeing what works for you. What works for one person may not work for another and vice versa.
Hope that helps!
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