Good Day all,
I have decided that one of my niche's and the one that I am being attracted to the most is mobile homes. Is there anyone here that deals in mobile homes?
What is the first step?
What should I look for in these types of property?
Does these properties have the same inspections as single family homes?
Do I go with seller financing for my first purchase? (No Financing/Bank Loan/Traditional Mortgage)
Any and all pointers will greatly appreciated. I am located in the Suburbs of Atlanta, GA.
Harold F. Hawkins II.
Learning the market can be one of the most time consuming yet helpful things you can do to become an expert in this niche. In the beginning, you'll have to do a lot of research and fieldwork to find out the supply and demand. Also, it will give you an idea of what area(s) and types of homes you feel comfortable with. From there, you can decide exactly what type of clientele you prefer for buying, selling and/or renting.
Best of luck!
@Rachel H. - can you expand on what "learning the market means"? How would you go about doing this? What steps do you take to understand your local market?
Sure thing @Ian Tudor . Basically, knowing your customer. Demographic information is vital to the success of any business. Those who work locally in the industry (i.e. park managers, park owners, mobile home dealers, property managers, etc.) will be instrumental in providing important demographic information.
From there, you'll want to determine what type of clientele you want to work with and what exactly they are looking for (i.e. mobile home type, features, neighborhood, etc.). Find out where they work, eat and play - what is important to them. Financials will be important as well such as salary information, job type, how much they are willing to pay monthly towards living expenses, etc.
I once wrote a piece on the importance of knowing your customer (i.e. where they work, shop, eat, etc.). It really helps to be seen as a local rather than an outsider on both the buying and/or selling/renting end. I believe Warren Buffett is a proponent of this tactic as well when he researches companies to buy.
Hope this helps. Best of luck!
@Harold H. I think the first step would be to start looking to see what is out there. Check out locations and even check out local dealers and see what they have for used homes. Craigslist is also sometimes a good place to look. Go out and see what your market is and do some research. Check out local MHP's and see if they allow you to be an owner and rent out the home in the park. Some do and some don't.
As for inspections, I am sure you could have a house inspector come look at it but depending on the price of the home is it worth it? I think ideally you would want to buy some newer homes at least in the 80's but preferrably in the 90's or 2000's. They are so much nicer and in the newer years.
What to look for, hmmm, I would look for something at least in the 80's or newer. Myself I like stuff 90's and newer, I would prefer a shingled roof and 16wide if possible. Really all depends on your market. You could find some older ones for cheap and come out real good on them as well. But with any mobile home there is always more maintenance. Really personal preference and budget.
Selling financing works if you can find someone that wants to do that. I think Bank financing is tough and high interest rates follow along with mobile homes. Most local banks want to see something 15 years or newer but I think there are national banks that lend as well. I know interest rates around here are high over 10% maybe even 15% for mobile homes.
I am new like you and have started in the mobile home side of things because the out of pocket is cheaper. I have found some deals but they all need repairs which is nothing new to me. Good luck in your investing.
We have 16 homes we're looking to give away for free in Spartanburg, SC. All need work, but you can rent them out in our park. Lot rent is $225 average market rent $475-$500
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