Mobile Homes

10 Replies

Hi Ron,

You will probably want to do a search here on BP for John Fedro; he offers a lot of useful perspectives on the subject.

You might also want to look into MobileHomeGurl, Rachel Hernandez.

I'm doing buy-and-hold with mobiles, so can't share direct experiences, but good luck!

Hi Ron and Carol,

Good basic questions. The answers will vary depending who you talk to. 

The short answers to your questions are 1.) It depends and 2.) it depends. 

I see that you are located near Northern California. After doing a quick search I see that there are over 250 family mobile home parks within a 50-mile radius of your area. I bring this up because you have opportunities in your area to help buyers and sellers. Additionally you're inland so your lot rents will be reduced from the coast's absurdly high lot rents.

You mentioned "flipping" these homes? Many times mobile homes are great for passive cash flow and rentals, however in most areas finding cash buyers or bank approved buyers may prove difficult. With that said your area may have more cash buyers in the market that are willing to pay a higher price due to the area.  I bring this up to alert you that flipping mobile homes for $30,000+ paydays are unlikely. Certainly not impossible… But not typically as quick or easy as renting or selling via payments. 

You may also wish to consider investing in mobile homes inside mobile home parks and mobile homes located on their own private land that you will also be owning. Both of these types of properties obviously have their advantages and disadvantages. 

The closing procedure in your state with regards to mobile homes inside parks is relatively straightforward with all paperwork being signed by both buyers and sellers. Forms are then mailed to the state with the appropriate fees and ownership is transferred. Concerning mobile homes on real property, these are closed in escrow in a near identical procedure as any single family home. 

These were very quick answers however I hope this helped some and points you in the right direction. If you have any follow-up questions or concerns feel free to write back and we'll all be happy to contribute to helping you get clarity.

Talk soon,
John Fedro

Originally posted by @Ron Vasquez :

How profitable is flipping Modular or Mobile Homes? Is it very different from traditional homes?

 Hi Ron,

See my post "flipping my first Mobil Home in Southern California" in it I tell all about the deal and you will see some of the pictures of it also also "soon to be updated".  In our deal we will see at least $55,000 in profit, but it has been a huge eye opener.  Mobile Homes are not conventionally framed homes by any means.  My contractor is very experienced and we have completed multiple deal this year together.  Just the other day he flat told me the mobile home has pushed him and his crew to their limits.  The framing is different the electrical is different the pluming is stuffed in Sofits and romex wire is just run with no real regard for the safety codes that are so tough on here in California.

All this believe me is no call to an alarm,  just want to explain your opportunity properly. Our project manager along with the laborers cant seem to get any momentum going.  The whole project is constant tear up and try and figure out how to repair.  I would recommend you consult a Mobile home specialist, my contractor has been working in the Riverside, San Bernardino area for years and has completed hundreds of rehab.  They are no lite weights, just goes to show you that nothing makes up for the right experience.

That is the only bad news I have for you, we weren't prepared for the different conditions that were in front of us.  Luckily we adjusted and worked through it all, and just finished our drywall this weekend.  I'm sure the rest of the deal will be fine, we have one extra work order that he is asking for because of a roof repair that was done poorly buy the old owner so we will fix properly to sell for top dollar.

All and all the choice to buy a 1880 sq ft triple wide on a permanent foundation sitting on 71,000 sq ft of horse property for $184,000 was a good choice.  Its been a battle but lets face it my lender says our job is to make problems turn in to profits.

Good luck

Jim

Thanks Jim. I thought that would be the case. I’ve been going back and forth about getting a specialist to look at the electrical and plumbing when I finally do find a possible deal. But I know they don’t come cheap and I don’t know if it will be profitable in the end. I can do cabinets, carpet and paint myself.

I think I just need to get over my fear, crunch the numbers the best I could and just do it. I’ve done lots of reading and got the general idea, it’s just kind of scary without someone who has done it before.

Carol Venolia :

Hi there! I see you're also a custom home architect turned RE Investor!! That is awesome! I also see you invest in mobile homes! I have a mobile home under contract in Mesa, Az in the desert sand country club community, but has no HOA or age requirements! Great for a buy and hold investment as the area is a popular retirement destination as well as for middle class families!
Give me a call if you're interested!
Have a great day!
Billy Bell
(480)620-7834

Originally posted by @John Fedro :

Hi Ron and Carol,

Good basic questions. The answers will vary depending who you talk to. 

The short answers to your questions are 1.) It depends and 2.) it depends. 

I laughed way too hard at that XD

I avoid "Manufactured Homes" in Wisconsin, as end users are very limited to mortgage options, it could work if you hold the paper, or if you have a lender on board. A manufactured home is considered Chattel and not "Real Property" there are exceptions, when permanently attached to a foundation.

Also a "Modular Home" finances as a regular home, it is built to standard building codes, please don't confuse them, the difference in value is many thousands of dollars. Modular has a Deed, Manufactured has a steel frame under it, and has a title at the DMV. Good Luck!!!!

both modular and mobile are types of manufactured homes as well as panel houses. 

The terms can be a bit confusing. 

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