I'm in Texas and VERY interested in flipping mobile home. Low cost/Low competition being the major positives that catch my attention on everything I read.
My question is, is anyone buying mobile homes that need work and then purchasing land to move them to? Wouldn't this create a higher ARV if you got to pick out a nice piece of land and fix up the mobile home there to sell. I really am interested in finding nice lots close to the lakes around Dallas. I just don't think I can do the standard buy an old run down trailer and sale for payments without doing any repairs. Not that that's not amazing for other people. I would just be more excited about creating a quality finished product and improving neighborhoods.
A little bit about me:
I'm a Realtor in Dallas and also have a construction background. I can do most of the dirty work and actually enjoy hard manual labor, it makes me feel good. I'm just trying to pick the best formula to fit my skill set on how to attack these MH's.
Any information or thoughts are very much appreciated. Thanks guys!
It has been a long time since I have bought a MH and not made it look very nice. I am not a big fan of ugly homes. I do believe you will find it too expensive to pay the moving and set up fees/cost to move a home unless you buy a very nice home for cheap. Most people dont move MH's because of the expense. I think if you are patient you will find home and land for a good price. I believe @Curt Smith does this very well. Having said all of this I would buy land home deals if I could pay cash.
I agree with Rick completely. I buy double wides off auction. Com or REO usually first seen in zillow "nanufactured" automatic emailed search.
I pay $17k to $25k for nice homes newer than 1996 preferably newer than 2000. Just lipstick rehabs. Almost always a new heatpump.
Your all in needs to be under $35k. No way to stay under this max moving houses buying land septics etc. Can't even buy from occupants because they have too much debt.
This maybe a short lived business till all the foreclosed doublewides are Thriugh the system. Which I'm ok since I've got my 25... :)
I'm interested in this strategy as well. Two things I consistently hear:
1) It cost too much to move
2) There is no land available within 50 miles of the metroplex
I think there is a great opportunity if we can solve either of these and HUGE opportunity if we can solve both.
What is your exit strategy and price point ?
The most difficult problem in the MH market is the ability for your end buyer to get financing. Most retail buyers in Texas FHA or USDA financing.
USDA- Does not finance mobile/manufactured homes
FHA- Once the MH have been moved it is no longer eligible for FHA financing
I believe @Jon Klaus has utilized this strategy in the DFW area so he might be able to help
@Greg H. I think most investors (at least the investors I know) who buy MH's with land will be paying cash and keeping for retirement income. Financing isnt a big deal for them. I do believe there is a growing market for companies that will finance MH's with land and hopefully that will get better.
That would be a totally different thread as the OP was speaking of flipping Mobil homes. Some of the same questions regarding an exit strategy are still applicable. Mobile homes that are not eligible for FHA financing are going to be difficult to sell in many areas except for cash or via seller financing
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