I’m considering trying out the fix and flip process on mobile homes, first I’m spending lots of time researching my local market. I’d love some insight to the Utah Mobile home market:
Do you know of investor friendly mobile home park owners?
Are most of the mobile home parks in the salt lake area owned by larger companies?
Are there any mobile home parks that rent spots for less than $600 a month?
Has anyone else dabbled in renovating mobile homes for quick cash?
Any other insights or advice?
Thank you so much in advance!! I am incredibly grateful for this platform and for your wisdom 🙏
Flipper/Rehabber · Middleburg, FL · Member since 2017 · 57 posts · 34 votes
6y
@Chloe Dawn Murphy this can be an extremely profitable niche to get into. I would recommend looking into John Fedro's podcast called "Mobile Home Investing Lessons", and/or "Mobile Home Park Investors" with Jefferson Lilly and Brad Johnson. These guys are actually doing what you are talking about doing, and will give insight into this asset class.
Real Estate Agent · Salt Lake City , UT · Member since 2017 · 155 posts · 92 votes
6y
@Chloe Dawn Murphy Hi Chloe, I like the idea of flipping mobile homes but the issue is once remodeled finding a buy is very difficult. You cannot finance mobile homes very easily. So your buyer at the end of the flip needs to be a cash buyer. If you want to buy and hold it might work.
Thank you for the response! Yes, it seems there a few details I will need to figure out to make my decision to undertake this project or not. Buy and hold only makes sense if I do seller financing to whomever I sell to. Thanks again!
Bakersfield, CA · Member since 2017 · 22 posts · 9 votes
6y
Chloe,
MH are a Difficult Profit Zone. Only way to make Cash is , unfortunately, Contract for deed / RTO on Your Land. Even thru this process, you risk a great deal unless you take a 50% down. There are mega Risks involved and No lender will touch you while they sit On Wheels. I would say If you own Zoned Land tomolace the Home itsna very Large risk for investing.
Real Estate Agent · Salt Lake City , UT · Member since 2017 · 155 posts · 92 votes
6y
@Chloe Dawn Murphy Hi Chloe, Yes seller financing is the key in most mobile home parks I am familiar with. It is very likely that you will recycle buyers before you actually sell the home but that is part of the business and can also be profitable.
Recycle buyers = they put a down payment intending to buy, then default, you evict, you get rent ready again(remodel), then you list as seller financing again.
Real Estate Agent · Salt Lake City , UT · Member since 2017 · 155 posts · 92 votes
6y
@Chloe Dawn Murphy. My friend owns a "buy here pay here" car dealership and I use to help him manage the debt AKA repo cars. I might have created the term from that industry but the idea is the same. It can work but it takes leg work.
Flipper/Rehabber · Middleburg, FL · Member since 2017 · 57 posts · 34 votes
6y
@Chloe Dawn Murphy this can be an extremely profitable niche to get into. I would recommend looking into John Fedro's podcast called "Mobile Home Investing Lessons", and/or "Mobile Home Park Investors" with Jefferson Lilly and Brad Johnson. These guys are actually doing what you are talking about doing, and will give insight into this asset class.
After actively running numbers for a few months I ended up not doing any mobile home flips. I’ve done a few quick travel trailers/motorhome flips for practice and for some small $$. Still open to doing it, but finding mobile home deals hasn’t been my priority.
Rental Property Investor · Keaau, HI · Member since 2019 · 55 posts · 33 votes
6y
@Chloe Dawn Murphy no but I’ve watched a few videos and I can totally see the upside. If done right it requires very little capital to start and can produce a huge return on investment. I used to live in Utah and have a lot of family over there and this strategy seems to make sense with affordability becoming a huge issue all across the state...