$50,000 Profit Mobile Home Flip!

27 Replies

I haven't posted in a while, as I have been busy running my investing group and doing deals, but I wanted to start sharing more.  I am a flipper, wholesaler, and wholetailer, but have never flipped a mobile home.  Why?  I have never thought flipping a mobile home would be worth my time.  That all changed a few weeks ago, when I was asked to evaluate and possibly consider a mobile home.

The seller owned this property free and clear and it is in a park.  The seller was behind a few months on park space payments and the seller also owed the park some other money.  They filed for repossession, and I was called in because the seller wanted to get out quickly and move on.  This is a double-wide 1510 sq ft 4/2 manufactured home built in 2003.  It needs flooring, paint and a few minor repairs.  It comps at about $80K if looking decent.  The seller wanted $50K, but after 2 weeks of back and forth, the seller agreed to $23,500.  

We are almost done with the work after about 10 days and the home is going to be listed at just over $80K, making this a $50K profit, actually about $45K after re commissions and closing costs!  Not a bad deal...a 200% return in just a few weeks.  So, apparently you can make some money flipping mobile homes!  Maybe I need to change my marketing strategy :-).

Thanks for sharing your story.  It's always nice to hear success stories :)

415-779-2155

I always pass up any mobile home deals. Maybe I should be more attentive going forward!

@David Oldenburg , great to see you step outside what you know and into new territory with the mobile home flip.  Guess you just proved to yourself that you can do anything you set your mind to.  Great job!

I would love to hear how this one ends up working out for you after you have it sold.  Sounds like you found a good one-I am curious what state this is in?  All the best!

I flipped a mobile home as well. It exceeded my expectations. We originally bid on Auction.com for a mobile in CA. Auction.com actually called me to let me know that my bid was nowhere near the reserve that the bank authorized. I told them I couldn't sell it after it had been repaired for what they want as a reserve. After many attempts of the bank listing it for auction, my realtor got the listing from the bank. They initially wanted a high listing price, but after 2 weeks they dropped the price from $100k to $70k. I lowballed at $60k all cash and we met in the middle at $66k. We put $25k of work into the deal replacing flooring, adding extra kitchen cabinets etc. So we were all in at $91k and originally I thought to list it at $120k since that would be a quick turn and not sure of manufactured house flips. My agent listed it at $130k and after a month we got an offer for $130k and made a quick $26k profit. Only issues we dealt with was that the agent wrote up the offer on the 90th day instead of the 91st since it was an REO flip. It was resolved, but the lender took forever to close the deal.

@Marc Faulkner This mobile home is in Sacramento, CA...  I will be glad to post the actual numbers once it is sold.  

@Aron D.   Congrats on your mobile home success!  I am a broker as well, so I list all my own homes, but I do pay a commission to the other agent who brings the buyer.  In my area, most of the mobile homes sell for cash in a less than 2 weeks.  The park I am flipping in right now has 3 recent sold comps, and they all sold in under 5 days.  Your $26K profit on a $66K investment was really good! 

@David Oldenburg Sacramento is my hometown! That is awesome to hear because the prices in Sacramento are high but there still are investment opportunities for people with less capital. They just have to be creative and consider investing in mobile homes. 

Most people I know would not consider that a sound investment and as a result they sit on their hands and wait years until something better falls in their lap or they accumulate more money. 

Jacob Wathen, Real Estate Agent in OR (#201222796)
971-236-3552

@David Oldenburg Sacramento is my hometown! That is awesome to hear because the prices in Sacramento are high and there are investment opportunities for people with less capital. They just have to be creative and consider investing in mobile homes. 

Most people I know would not consider that a sound investment and as a result they sit on their hands and wait years until something better falls in their lap or they accumulate more money. 

Jacob Wathen, Real Estate Agent in OR (#201222796)
971-236-3552

@Jacob Wathen   Yes, the Sacramento market is full of opportunity at almost every level of investing, from the mobile homes to higher priced homes.  You also do not need money, or at least a lot of money to participate.  I partnered on 3 of the flips I did in 2017, with brand new flippers who had no money.  They found the deal, I put up all the money and we split the profit 50/50.  I paid out over $100,000 to these people in profits on those flips, and they put little to no money out of their pockets.  I am speaking this Tuesday, January 9th in my local area to my real estate investing group about some of these deals.  It's too bad you are not in the area!

Wow! That deal sounds very familiar. I’m in Portland and I found a 2/2 1991 mobile home in a park on sale for $35k. I negotiated down to $20k with comps in the park going for $120k.

I estimate the rehab to be $33k and that includes a roof and an added bedroom to make it a 3/2. Even after holding costs and expenses, I’m looking at a profit of $60k. We’re a month into the rehab and so far no budget busters.

On the west coast with prices so high, even for mobile homes, there is money to be made on mobile homes. I’m already looking at if this is an anomaly or a system that can be expounded upon.

Congrats on your success!

@Daniel Derrick   California does have higher prices than many other States, but there are some good low-priced deals in certain areas, and also in some mobile home parks.  It's funny that I flip here and spend usually $200K to $300K per house to make $50K, and I only spent $23K to make what I believe will be $50K on this one!  It just goes to show that if you are looking for the deals, you will find them. Congrats on your flip!

@David Oldenburg that is great David! I know a lot of investors in the area and a couple of them are actively seeking partners. I will suggest that they make their way over to your REI meeting. Can you give me a little more info?

@Daniel Derrick Congrats on your flip in progress! I would love to hear more about it. I actually live in SE Portland and it would be great if we could meet over coffee sometime! 

Jacob Wathen, Real Estate Agent in OR (#201222796)
971-236-3552

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@David Oldenburg    great deal, I am also a wholesaler and rehabber but never on MH,  I will love to see the actual numbers,   do you have some pics of the rehab? 

(786)-529-4075

@Carlos Zapata   I do have some pics, and we are putting in flooring next week, so I will post some at that time!  It's a nice place, considering the pricing, and the profit.  It's also a nice park, well-maintained and managed.  Like most of my deals, the seller needed cash quickly and just wanted out.  She could have sold for a lot more, and I even told her she could get a lot more, but she still wanted the money and a quick sale.  

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Hi David, where will you be speaking on Jan 9?  Is it open to anyone?

Thanks,
Dave

@Dave Peterson   Hi, I am not allowed to promote myself on any of the threads, so please send a private message and I will be glad to give you the information!

@David Oldenburg I was wondering if you could find me a deals in ventura county on mobile homes? Can you pm me?

@David Oldenburg, Thank you  for the encouraging success story. You mentioned, "I was called in because the seller wanted to get out quickly and move on." How did the seller find you? Mutual friend/realtor? 

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