Mobile Homes??

22 Replies

What would you do? Flip mobile homes or do something like Lonnie's deals, were you carry the note of the property. Or don't do either. Thank you.

Generally I would avoid mobile homes. (The one big exception is mobile home parks, which is it's own type of investment and can be very profitable from what I hear). If you do get into mobile homes, make sure they are on their own land and are pretty new or you're buying them for dirt cheap. It would be pretty rare that you would find one that would make for a good flip. Now the new modular homes or prefab homes are better and I would have more interest in.

@Account Closed


You can not do Lonnie deals any longer due to Dodd Frank and Safe Act lending rules.

However, you still can invest in mobile homes. On land and city lots (which makes them real estate) and, if done right, in parks (which is personal property). 

Low cost of entry and high returns. 

Many investors avoid them as depreciating assets. Eye of the beholder.

We typically see $5k-$10k per deal, monthly cash flow and 200+% annual ROI.

Not for everybody though.

I have not read Lonnie deals so I kind of know what's it all about. I had in mind if i could by the mobile home for cheap and buy it out right, could I do a seller finance to someone else interested in  purchasing the home and charge them interest, for so many amount of years until they pay me back. And if that is possible if the tenant voids the agreement between me/her and leaves who would be liable to pay the monthly lot fee. 

Financing to owner occupants is now allowed anymore since the Dodds Frank and safe act came into play.  There is money in mobile homes like Bill mentioned.  I see similer results doing it in parks if I sell. I have been keeping them as rentals myself.  It is really each to their own.   They Sure can be more of a headache at times. 

Updated over 5 years ago

Oops I meant it is NOT allowed.

For those of you that are still buying MH's are you owner financing, lease optioning, or what type of agreement are you using to sell the home?  I just dont get it yet.

@ Rick - you can create a promissory note to sell mobile homes to end users.  I don't think you can charge interest, however you can create an unsecure note between yourself and a buyer to get you monthly payments.  I just bought my 2nd mobile home, will clean it up and then re-sell.  If all goes well I'll more than triple my money in the long run.  It will take lots of deals to generate good cashflow, but it seems possible to close at least one of these per month, at which point I'll be making more than my salary.

Definitely ask John Fedro your questions.  He is the guru of mobile homes and will wrute you back for sure.  I reached out to him a few times before I got started and it was very helpful.

Good luck.... 

If you are just getting into the bis, which I assume you are, it is much smarter to figure out how to flip mobile homes, than it is to take back any kind of note.  There are way to many land mines in taking back notes and dealing with the parks right now.  

To flip mobile homes, you need to get connected to people that buy them all the time, as part of their regular business.  You will want to connect with mobile home park owners that are looking to fill lots.  You will also want to connect with wholesale mobile home dealers in your area, that pay cash for mobile homes.  These guys won't wast your time and energy.  They will tell you what they are looking for-you find a good deal-mark it up a bit and present it to the buyer/investor!    

Bill Neves:

Hey there! I see you specialize in mobile homes! I have one in Mesa, AZ under contract in the desert sands country club community, that has no HOA and needs interior paint on walls and cabinets only.

Give me a call if this is something that may interest you.

Thank you!
Billy Bell

Lonnie Scruggs is the man!! Unfortunately with the SAFE act, as others have mentioned, it seems much more difficult. BP Podcast #75 is highly recommended for this topic though!

@Roland Thomas  I think it is a decent way to get into investing.  As mentioned before you can't really do owner financing like you could before the SAFE Act and Dobb Frank.  Depends what your goal is also.  In my market if I buy right I can flip after fixing them up for a profit but I prefer to use them as rentals.  I have a couple parks that allow me to do that which works for me. 

I'm a newbie but my wife and I may be interested in buying a MH. We live in NYC and need a mentor to help us along this path.  We won't need to finance it.  But I want to know how I can do this long distance since there aren't any where I live.  Thanks for any help that you can give me. 


We have a land & mobile under contract in kissimee, FL and I could use someone with some MH expertise to guide me through this process.  I have listened to john fedro's podcast twice and he doesn't spend a lot of time on the land/mobile home side of things. 


Is the land and home deeded as one?  What is the year of the home and is there a visual data plate, ie. on back of cabinet door, laundry room wall or closet wall?  

" For those of you that are still buying MH's are you owner financing, lease optioning, or what type of agreement are you using to sell the home?"

It all depends on who you are buying through. If your independent, promissory notes are ok but not ideal. But sometimes may be the only option. 

I think the best bet is to find national buyers and plug into their network. If they have the right software you can post pictures and offering price, get offers before you even buy. 

So the ideas that Lonnie scruggs discusses in his book " DEALS ON WHEELS" is no longer applicable in the MH investing business because of Dodd Frank and safe act? What a bummer I was planning on doing just that. Any suggestions for how to navigate those treacherous waters safely and legally?

To my understanding, owner financing, or a form ofthe old "Lonnie Deals" was still a viable option on park MHs, so long as one was abiding by the new(er) state specific and federal regs (SAFE Act/Dodd Frank/Truth in Lending,) in addition to the obvious park approval. Dealer licensing/using a RMLO/ properly qualifying your buyer/no balloons all come to mind. Florida allows one deal (either all cash or OF to owner occupant) per 12 months before licensing requirements come into affect, but this is state specific and some states allow more. @Logan McCray, Nevada doesn't allow ANY investor deals, as far as I understand it, without dealer licensing. But, at least in FL, the licensing is quite attainable. John Fedro has quite a bit of info about this available to you.

The above, if I'm not mistaken, does not apply to investor-to-investor deals, if the home is your personal residence, or on its own land. No? Experts, have I missed a new reg in the last 20 days? 

@amanda fishman 

Thanks Amanda I will check that video out and see what John has to say about it. I will look into the laws here in NV as well. Thanks for the response