Being new to Real Estate investing (and not having a lot of money!) I was looking for a way to start out relatively small. Then I ran across Manufactured Homes. What's the best strategy when it comes to mobile home investing? I realize that they don't appreciate in value (and can often depreciate). But it seems like I can acquire a relatively cheap mobile home that will cash flow nicely once rented out. Should I buy and hold for a few years, make some money (hopefully!) on the rents and then sell? Or is more of a long term play? Or should I just stay away from Manufactured Homes altogether because they can be to risky?
Thank you for taking the time to read this and I look forward to chatting with you all!
I too was interested in manufactured homes. Specifically in FL. I have one rental that is a rancher, but I think my next will be no more than 60k. One thing I read was that insurance may be more expensive. Specifically because the high risk of total destruction in case of fire.
Welcome aboard to you both.
I moved to mobiles a few years ago and haven't gone back to stick built, except as my residence.
They depreciate in value on the surface. However, it is unimportant. We typically sell mobile for FAR more than should be expected because it is affordable housing. We recently sold a 1968 2/1 for $25k and a 1972 2/1 for $28k. Both in excellent shape.
We also have several on rental payments (rent to own). You need to be in compliance with the new Dodd-Frank lending rules.
The reason we're doing mobiles include:
1 - very low cost to start doing them.
2 - very high returns on your money.
3 - little to no need to use title companies and realtors. (We work with them but usually don't need them.)
There is a lot of info in here about mobile homes.
Yell if you have other questions.
Good luck and have fun!
Hi @Bill Neves ! Very interesting insight. I have this (preconceived) notion that mobile home tenants are more work to manage - am I off on that? Are you strictly buy and hold in your strategy? Or do you fix and flip? I'm just a stone's throw away from you in Portland!
We do both depending on the deal. We just fix and flipped one for $89,900 cash. We were going to have the buyer get a loan but they sold a house and had cash.
Yup, we're just across the river and state line.
Do you buy just the mobile home located in a mobile home community or do you actually buy and sell land with them?
Both. Mostly we are dealing with mobile homes in communities. Less dollars due to no land included. Personal property so easy to buy and sell. Much like a car. No title company usually.
With land, they're treated as regular real estate. Title company, etc.
Lots of investors say avoid mobile homes AT ALL COST. We disagree.
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