Mobile Home success story.
30 months ago I bought an occupied 2 bed 1 bath mobile home for $2,500, collecting $200/month in a park. Gross rent collected $6,000. The tenant moved out due to health reasons. It took $640 to get rent ready. The same day I put it back on the market, I received a call from a man interested in buying with cash. We settled on $10,000.
BOOM! Who said these things depreciate?
Seriously though, most deals do not work out like that, but I wanted to share with y'all the possibilities that can come from small investments.
Congratulations, @Josh McCullough! I don't know about most deals, but I think deals like yours happen more often than many people realize. I've acquired mobiles in the same price range; I'm holding and renting them, but based on recent sales in the same park, I'll bet I could sell them for a good price. (At this point, I prefer to hold them, cuz they'll pay for themselves in 2-3 years and keep on generating income.)
This is not to take away from your good fortune, but to say that this is a repeatable success under the right conditions. You go!
Thanks for chiming in @Carol Venolia! As you well know, mobile homes are a great way to get your feet wet in REI, and some of us like it enough to stick around for a while!
Congratulations @Josh McCullough!
I hadn't thought a mobile home would be such a great investment. I'll definitely share this success story with others.
-Mary Clare
Thanks @Mary Clare Archer! Mobile homes are so cool!
Nice win!
How much work was the property management? Was this close to where you live or were you doing this at a distance?
Thanks for sharing ^^
Originally posted by @Daniel Ryu:
Nice win!
How much work was the property management? Was this close to where you live or were you doing this at a distance?
Thanks for sharing ^^
It was about 2 hours from my house, and management is a breeze. I have 11 more homes in this park, and have a trusted maintenance man who does all of the hard work.
Originally posted by @Josh McCullough:
Originally posted by @Daniel Ryu:Nice win!
How much work was the property management? Was this close to where you live or were you doing this at a distance?
Thanks for sharing ^^
It was about 2 hours from my house, and management is a breeze. I have 11 more homes in this park, and have a trusted maintenance man who does all of the hard work.
Cool!
So you're a Lonnie Dealer? What area are you focused on? Just wondering because I'm looking at parks now, and of course, wondering how I might fill vacancies ^^
@Daniel Ryu I'm in the Atlanta area. There aren't many Lonnie dealers around here who will actually move homes. We like them where they are! It's just to expensive to move them. I'd recommend looking for parks that are already full of homes, whether they are occupied or not. Finding homes and having them moved and set up is a full time job!
Thanks for the insights.
I'm also looking into the 21st Century CASH Program as a way to bring on homes. ^^
Lonnie dealer in WA for 14 years - got me out of my full time federal J-O-B 11 years ago. Best deal on a park is one that has problems you can easily fix, like bringing in units. I disagree with Josh. Moving in homes is not that expensive, relative to the return. As an individual home investor, though, I agree with Josh.
Also a landlord - 12 MHs with land, and 5 in-park homes. Have carried dozens of notes, only a few now, prefer to rent while I have the temperament for it.
I love milking these cash cows! MHs rent out at a return comparable to a sfh, but waaay lower initial investment.
I've read all the comments on this thread and am envious of the fact that you can actually buy single M.H.s and sub lease them in an MHC. I own several in Southern Cali and but have to have be the legal owner and put the tenant on as registered owner in order to comply with Park Rules and Regs. This can be risky biz if you don't know or can't depend on your resident/tenant.
Originally posted by @Steven Wiltz:
Lonnie dealer in WA for 14 years - got me out of my full time federal J-O-B 11 years ago. Best deal on a park is one that has problems you can easily fix, like bringing in units. I disagree with Josh. Moving in homes is not that expensive, relative to the return. As an individual home investor, though, I agree with Josh.
Also a landlord - 12 MHs with land, and 5 in-park homes. Have carried dozens of notes, only a few now, prefer to rent while I have the temperament for it.
I love milking these cash cows! MHs rent out at a return comparable to a sfh, but waaay lower initial investment.
Thanks for posting Steven! After reading your post, maybe I'll take another look at moving some homes into local parks, closer to where I live. I'd have to get good terms with the park owner though.
My situation is kind of a fluke. The first house I bought was in this park, 14 yrs ago. I've bought & sold probably 12 or 15 (or more?) over the years, and they've always recognized the value of what I bring. I've taken over MHs that the park would demolish, and shined em up really nice and attracted good lot rent tenants for them... and good note payers for me! So about 18 months ago, the pm told me that they trusted me enough to allow me to rent any new ones out. cha-ching! Have gotten three rented since then, and just got 2 more. Both need a ton of work, like 5k each, but it's well worth it.