Mobile Homes

[Ron Vasquez]

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

[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 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