i have a few hundred grand that i am looking to invest into some rehab projects.
how different is mobile home investing from SFR or multi-family?
If you buy newer than 1998, preferably newer than 2000, alot different. Often just paint, carpet, hvac, some times a roof. No bath/kitchen rip outs, which is std in stick built.
Your problem in NH is availability of forclosed MHs at a good price. We only buy homes on their own land, never in parks. Read here as to why. Stay away from homes in parks.
@Curt Smith offers some really good advice.
A lot of investors call MHs "cash boxes" they are cheap to buy and cheap to rehab... but often they can only be sold on the cheap too and offer little appreciation over time. (in most markets, your market may be different).
Because of the MANY new lending regulations it can be hard to imposable for a buyer to get a owner occupied loan to buy your homes from you when you eventual liquidate. meaning you are selling to cash buyers and investors only.
Right re no lenders (to speak of) on even the nicer doublewides on their own land. But still there are few sellers who can sell cheap because they have too much debt they put on from the lending hey days. We buy 100% of our deals via foreclosure channels. The Gov sites, banks etc.
@Curt Smith can i tell you how nice it is to hear you say that. I get so sick and tired of people saying "nut ahhh... you just haven't found a creative enough lender". Usually a recent seminar graduate, unaware that I have spent the past 15 years as a full time lender and investor. I KNOW exactly what can and cant be done, and am always willing to push the limits. Having someone with REAL world experience validate the limits of lending is so refreshing, thank you sir!
I have found 3 bedroom, 2 bathroom mobile homes readily available at $1 to $10,000. After rehab, the mobile home is usually cost me about $15,000. I put in new electric furnace and heat pump and free standing stove and refrigerator. I put in new pad, carpet, linoleum, vinyI mini-blinds, new paint inside and outside. I insulate the attic space. I place R-19 batts underneath then covered by "aluminized belly-wrap." I only buy single wide mobile homes with a peaked roof. The age is not as important as the condition. I buy 14' to 16' wide and 70' to 80' long.
I find parks that pay to move the mobile home into their park for free and give concessions on lot rent. I am moving one mobile home into a park that pays for the complete move and gives lot rent concessions of 50% off the first 12 months from the current lot rent of $290. Then, 30% off the next 12 months from the $290 even it the market lot rent goes up. I make agreements with the renter that after they live in and pay the rent of $433, the lot rent, the trash fees, the water fees, and the sewer fees, the electricity, the TV, and the phone, then they become the owner at the end of the 12 years. This strategy avoids having to deal with the Dodd-Frank Act. A one year lease is signed in which the tenant pays for all the repairs and maintenance. After 12 years, I receive $62,352 on my investment of $15,000, which is a 415.68% cash on cash return. Where else can I find a cash on cash return like that?
Well, in NH, you'll have a challenge. If you are buying in a park, you'll find that the park owners can severely restrict your resale options to the point that the deal is undoable. Transport issues, rental restrictions, resale restrictions, etc. The park owners want to control the purchase of units for themselves and not allow another investor to make money in their park.
If you are actually buying the park itself, NH law requires that before you can buy a park, that the seller offer it to the park residents. They frequently band together, form a cooperative and buy the park, so your purchase evaporates.
Good luck with this one, those I know who have tried MH investing in NH have given up unless they own the park. And new parks are pretty much impossible.
MH on their own land would be the only way to go if you are staying in NH.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing