opinion on flipping mobile homes?

Question

i dont have much money.

do you think flipping a mobile home is a good start? (all depends on price of course).

how do i even run the numbers on something thats worth 15k?

Bill Neves · Answer

@Devin Mann

Howdy.

Several ways to do start doing mobile homes with little money.

You can ask the seller to allow you to make payments for a period of time. Then fix (if needed), sell and pay the seller off. Take the profit and do another.

You could get a money partner (or partners) to work with you and split the profit.  REIAs should have several at any meeting. A couple deals and you won't need their money any longer. And you're on your way.

Meet and cultivate park managers to be your eyes and ears in the parks and refer properties to you. They will come across deals that you will never see otherwise. We find some of our best deals this way.

When they give you a referral unit, make sure to 'thank them' with a $50-$100 gift card from a restaurant they like. Find that out during your visit.

Value is case by case, area by area and park by park. Takes a bit of legwork and home work to get a handle on values.

Like mentioned above if an asking price is $15k. I like to ask what's the least they would take for cash rather than give them a number. We've been pleasantly surprised how low we can get mobile home prices. i.e. $500 or $1000 for places.

Good luck and have fun!

Marc Faulkner · Answer

If it is worth $15K (meaning that is what you can wholesale it for a quick cash flip) then the home should be worth paying $10 to 13K depending on how much you want to make and, how easy the deal is to do.  Your key is going to be finding a one or two buyers that you can work with to quickly flip homes to.  These types of buyers will be park owners or mobile home dealers that are buying in the areas you want to work.  Good luck to you out there.  It can be a good way to do deals without having to lay out a lot of cash.

Teri Feeney Styers · Answer

@Devin Mann

Make sure it is HUD approved and has the "label" on it. (If you don't know what his means then you need to educate yourself). A purchaser will find it difficult to get a loan on one that is "pre-HUD" - no matter how nice it is. I assume that it is on rented land if it is only $15K - so park rents & fees are important to look at since that will be part of someone's monthly payment. You can find comps of solds in your area and deduct the value of the land from those that were on their own parcel. Really, it is the same as running numbers on any house - the numbers are just smaller. And buyers want the same thing no matter the budget: clean, bright, no clutter (paint, flooring, appliances, skirting, etc.)

opinion on flipping mobile homes?

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