My name is Kevin and I have been on bigger pockets for a good amount of time now and want to take some action. I have been looking at options in California for buy and hold properties to cash flow. I have considered doing a house hack as one option but it makes it hard here because properties are pretty expensive in my area in the inland empire and would require a lot of cash down for a conventional loan through a bank or financial institution.
I have recently started looking at mobile homes as a option to invest in as a rental buy and hold. I know that they do not really appreciate in value so I would be mainly looking just for the monthly cash flow on it.
What are the ups and downs about a mobile or manufactured home? Do most parks let you rent it out to people?
As far as a I know you do not own the land in most cases correct? Has anyone ever invested in it and if so how did it go for you?
Any help and advice would be great!
Investing in a mobile home, isn't really real estate. You are paying a landlord (the park owner) a fee. You just own the trailer.
We fund mobile with the land owned. We love the product for hold, flip or ground up. Happy to assist.
@Kevin Craig Most parks in California won't allow you to own a mobile home in the park and rent it out except to a relative. But in the Inland Empire there are plenty of manufactured homes on land where you own the land. These are not in parks. Some in good shape but a lot are not. You can get a lot of them cheap. I bought one for $60,000 in Perris. It was a 2 bedroom 1 bath single wide with a non permitted addition on 1 acre and needed about 15k in repairs. These are cash only deals but cash flow like crazy. You could also buy beat up mobile homes in parks for 5-10k, fix them up and sell them for 30-35k.
You are correct Guy some are 55 plus communities and will not allow rentals. The farm area in wildomar is good to look for manufactured with too many restrictions and temecula, menifee , National city in San Diego are great too.
Just wanted to mention too. Hemet has a high concentration of manufactured homes. Just FYI.
@Kevin Craig Yes, I've heard of others doing this in CA. Though, the lot rents can be quite high. Just be sure you have the cash reserves for holding costs while getting the homes fixed up and ready for the market. Good luck!
@Kevin Craig, There is a guy in I.E. that specializes in MH flips. He does lease/option, makes $12-15k/flip and a substantial monthly... PM me and I'll give you his info. He is very helpful and a guru with numbers!
@Jo-Ann Lapin do you have any borrowers in Hemet? It appears that Hemet has lot rent control per https://mhphoa.com/ca/rso/ and I imagine that could have a big impact on the ability of MHP owners there to turn a profit.
I would be really interested to hear from MHP owners in California whether they are able to make money in this state. I have read that Frank Rolfe from MHP-U won't buy in California or New York due to tenant-friendly laws. I live in California and am looking at MHPs but would prefer to buy within a few hours' driving distance from me, at least for the first one. Without a doubt, I would think twice or maybe thrice before buying a MHP with lot rent control, especially if it's set at 80% of CPI or something crazy like that.
Re-reading this thread, it’s about a single MH not a park. I️ should start a new topic thread to discuss parks in CA; my questions were accidentally out of context and I️ didn’t mean to hijack the thread.
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