Beginner in Mobile Home Investing

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Hello-

I am very interested in investing in Mobile Homes but have very little knowledge in this field. I just finished reading " Mobile Home Wealth" by Zalman Velvel but still want/need more insight as to how things work. My initial goal is  more cash flow which is why Mobile home Investing is appealing. I am hoping to buy 5-10 mobile homes within the next year. At this point I am only interested in renting them out and seller financing. My price range per home is around 5-10k. I would want to find fixer uppers & foreclosures. The states that I am most comfortable with as it stands is NC, SC, PA,DE & GA however I am open to other states. 


If anyone can offer any insight as to where I should begin? Should I work with a broker or park manager? If so, where can I find them? Are there other states I should consider? Any insight that can be shared would be tremendous. I am eager to learn and soak up as much knowledge as necessary to head in the right direction.

"Mobile Home Wealth" was published in 2007 and is somewhat outdated, especially wrt to seller financing.

You can find a lot of useful info by searching BP for "Dodge-Frank".

@Terrell Simmons Great read! Regarding your target area, you may want to get more specific on where exactly you want to buy. Most I know who have been successful in this niche focus in one state in a few different areas close by. Also, you want to decide exactly where you want to buy (i.e. in a mobile home community, on land, lots, etc). This will allow you to focus. From there, then you can start learning the market. Hope that helps! 

@Terrell Simmons there a many good BP Podcast episodes that talk about mobile home investing. The overall consensus is that the money is in the dirt and not the actual unit; most mobile home park owners want the tenants to assume ownership and responsibility of the units, as they are liabilities

@Terrell Simmons

Mobile homes can be money makers when you know how. They're housing but generally not real estate.

You can check out several videos I have on YouTube. Look for ‘Mobile Homes Make Money’.

I’m pretty much comfortably retired after 20 years in the business but I’ll be happy to share my insights.

Good Investing!


@Terrell Simmons It may sound trite but it all depends on your goals. Getting clear on what you want to accomplish is super important. My wife and I own 2 MHC's now and are actively negotiating a 3rd. It is important to focus on a specific location and strategy. We invest in Indiana because we have a team on the ground that we know and trust (lenders, maintenance, vendors, etc). Also the laws there favor the land owners. Our communities have MH's that are POH (Park Owned Homes), LPO's (Lease Purchase Option), and ROH (Resident Owned Homes). By far the easiest to manage are the ROH. Our strategy is simple. Convert rentals and LPO's into home owners. Lot rent is affordable. People that own their homes (they have the title in hand not a Rent to Contract) tend to to come up with the $300-$350 per month in lot rent. This provides consistent and predictable income for us without a lot of moving parts. Maintenance on MH's can get expensive depending on the age and type.

My advice is find someone who is already operating in the MH space and work out a partnership. This is the best way to mitigate your risk and fastest way to learn. 

Thanks guys for your feedback guys, I really appreciate it. The recurring feedback seems to be to reach out to people within the industry working my areas of interest so thats what I am going to do. I have reached out to people through multiple sites such as MHVILLAGE but still have not heard back from anyone. I didn't imagine it would be this difficult to get in touch with people especially brokers.

I called over 50 brokers before I got one to take my call seriously. Once they heard that I don't already own a park or thought I was a "boot camper" I got the run around. You just have to push through that nonsense and keep dialing. There are immediate things you can do such as look up "MHP Investor or Multi-Family Meet Ups". I sometimes drive 2 hours one way to go to a "Multi-Family Meet Up" to be with like minded people. Often times is not convenient to do it. (I changed my trip to Indiana this month so I could attend a multi-family meet up in Indianapolis.) You have to find MHP operators and reach out to them. For instance, Indiana has on line resources where you can look up: Name of the park, address, utilities, number of lots, expiration of MHP license, and phone number for the point of contact. This is a good place to reach the people on the ground. Other states may have the same on line info. Brokers on MHVillage are not likely to put a stranger in contact with an operator. The Mid-West Manufactured Housing Show in Louisville, KY is in January. This is a great place to meet people who own parks. We are currently in negotiations on a 62 lot park. The broker took my call on this park very seriously because I introduced myself as an operator that owns 2 parks already. But 2 years ago he would have most likely blew me off. Stay with it and make contacts. Hope this info helps. 

Originally posted by @Todd Connelly :

I would be interested in doing this in Florida. Great information in this thread

Hey fellow MHP owner and investor in Florida mostly focused in Central FL area. We own a community and have one under contract now. If you are interested in learning more about this business send me a message. Thanks 

 

Originally posted by @Eric Cecere :


Hey fellow MHP owner and investor in Florida mostly focused in Central FL area. We own a community and have one under contract now. If you are interested in learning more about this business send me a message. Thanks 

Sorry, I messaged you a few times, but never was able to connect

 

 

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