Hey everyone, I’m just about to pull my profits out of a recent flip I’ve finally completed and now I’m not sure what to do.
Out of these two options:
High cashflowing brand new mobile home in a more volatile rental market. With the potential to buy a few more over the next coming years.
Or bigger, older 5 bed 3 bath with potential to convert to legal basement suite as well as great flip or BRRRR strategy deal.
Both plans have a good 5 year exit strategy.
The plans for mobiles would to have tenants pay the units almost off, and then moving onto acreages and sell them as individual land/home deals.
The 5 bed 3 bath would be BRRRR house hack, buy, rehab, rent to room mates AND potential basement suite tenants.
Mobiles being obviously the much cheaper starting option as I can do one at a time.
House being a bit more nerve wracking as I would have to put up front about $80k. Yet could be more rewarding because it would be fun to do a proper live in flip on a bigger house.
I’m always learning and am trying to learn more, go easy me and my silly questions. If you need more info I’ll be happy to elaborate.
If the returns are equivalent, I'd take the house hack. A house is a more valuable asset than a Mobile Home, and if you can "hack" your way into owning a wise, financially sound $50,000 asset or a $50,000 I'd always favor the more valuable one all other things equal.
Hey @Dathan Nunn
Congrats on the successful recent flip!
I'm confused whether you have a single mobile home or multiple. If you have multiple, like a park, this might be the better option as the returns are likely better than the house hack.
However, the house hack returns will likely be better than a mobile home or two, especially since you plan to force appreciate it. If you're about to BRRRR the house hack and pull out most of your money, this is absolutely the best option, unless you have like 15+ lot park.
Also, renting out MHs is more intensive than renting out a house hack and will likely yield much higher expenses than you are factoring into your analysis.
Lastly, as @Will Fraser mentioned, the house hack is going to appreciate and increase in value while the MHs will just lose value. The exception to this is if you are actually looking at a mobile home park with multiple MHs. So, in my opinion, if they are just a few MHs on land, go with the house hack.
Hope this helps a bit, and please feel free to reach out anytime if you have other questions or just want to chat!
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