Do $2,000 mobile homes still exist?

General Landlording & Rental Properties
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Do $2,000 mobile homes still exist?

Sean Dezoysa
Investor · Toledo, OH · Member since 2012 · 292 posts · 34 votes

After reading "deals on wheels" and "mobile home wealth" I was determined to scour all the local parks to find single wides with $5000 asking prices, and negotiate them down to a $2000 cash sale.

However, my experience has been quite different from what I've read in the books. I can't find any single wides with an asking price of less than $13,000.
The range seems to be from $13,000-$25,000. I was very surprised by this, since what I read indicated that the lack of conventional financing is what allows you to buy a these homes for so cheap.

When I called several local mobile home dealers, I found out that 15 to 20 year loans are available for mobiles. And the houses do seem to be moving fast, since vacancy rates seem to be low at the parks I visited.

have things changed or am I just looking in the wrong areas?

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Rob Gillespie
Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
13y

Sean, 2000 dollar actual single family homes exist! LOL!
Mobile homes are next to nothing in some parks. Look on craigs list. I just saw one for barter that a guy wanted a quad or dirt bike for his single wide and it was pretty nice.
Personally, I would just do single family homes. this is a nice era in time that you can buy property for less than a car.
Good luck!

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  • Rob Gillespie
    Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
    13y

    Sean, 2000 dollar actual single family homes exist! LOL!
    Mobile homes are next to nothing in some parks. Look on craigs list. I just saw one for barter that a guy wanted a quad or dirt bike for his single wide and it was pretty nice.
    Personally, I would just do single family homes. this is a nice era in time that you can buy property for less than a car.
    Good luck!

    2Reply
  • Sam Parkins
    Contractor · Charlottesville, VA · Member since 2010 · 99 posts · 63 votes
    13y

    Sean D You're going to get a lot of varying opinions and differences on this. I don't know if that was your goal to "start a conversation" or if you did want specific input on the topic.

    My guess is the biggest determining factor in your search has to be location. I don't know your area, but if you are finding 1970 and 1980 model homes asking $13,000 then you are in the wrong area. Try moving out closer to the "sticks" as some call it.

    Marketing: Try different variations of marketing. Direct mail last week netted two free homes for me. One a 1991 in decent shape and another a 1974 in decent shape.

    Age/condition: It's unlikely someone has put enough work into an 80's model home to justify getting $13,000. Remember, it's a depreciating asset. For the location your in, you may have to wait for a home in worse condition than others to catch your price range.

    I'll agree that homes purchased at $3,000 or less may not be as prevalent as in past years, but they're out there. There may also be many more that need work in that price range, but the ones that don't are out there as well, just maybe in smaller numbers.

    1Reply
  • Sam Parkins
    Contractor · Charlottesville, VA · Member since 2010 · 99 posts · 63 votes
    13y

    Sean D Good lord, just checked the map on Chino Hills...of course people are asking $13,000 for their homes, you're in L.A. LOL!

    What are lot rents there? $650?

    My most sage advice would be to get yourself to some surrounding areas with lower property values. Homes in my town are almost twice as expensive as the surrounding outlying counties - for comparable properties! As you can imagine, I don't do a lot of deals within 30 minutes of my office.

    Hope that helps and best of luck to you.

    2Reply
  • Sean Dezoysa
    OP
    Investor · Toledo, OH · Member since 2012 · 292 posts · 34 votes
    13y

    Thanks Sam, I think you nailed it. I'll start hitting the outskirts. Lot rent ranges from $400-$950 with $700 being about average in the southeast part of Los Angeles county--this is in lower to middle income areas.

    How much do you expect to spend in repairs on those free homes you picked up? I'm on a shoestring budgest starting out but may be able to justify DM if I can get the homes cheap enough!

    0Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    13y
    Originally posted by Rob Gillespie:
    Sean, 2000 dollar actual single family homes exist! LOL!

    This is exactly the comment I was going to make. I have bought more that one SFH for $2,000 or less. So I know you can buy mobile homes for that.

    Keep in mind asking price is not necessarily the price you can get. Great deals generally aren't found they are negotiated. I am sure some of those $13,000 mobile homes can be bought for $5K or less.

    Good luck - Ned

    2Reply
  • Timothy W.
    Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
    13y

    http://www.youtube.com/watch?v=q-RLqLx1iYI

    2Reply
  • Sam Parkins
    Contractor · Charlottesville, VA · Member since 2010 · 99 posts · 63 votes
    13y

    Sean D As everyone has pointed out, all things vary. To answer your question I don't have to put any work into the free one's, but I got lucky this go round. I've purchased homes for over $10,000 that still need work...it just all depends.

    To follow on Ned Carey he is correct that the asking price is not indicative of the purchase price available. I would recommend "vetting" your sellers to find the one's with more urgency. I've learned that you can just about straight out ask sellers their motivation and in my experience 99% of the time they'll tell you the truth. The nice (and bad) thing about the mobile home business is that most need to sell before the end of any given month. Use that urgency to your advantage and vet the sellers that have the highest urgency, they're the one's that will sell you a home for $3000 when they asked $13,000.

    Using such a strategy as well as moving out geographically to hit some outlying areas should [hopefully] land you a decent deal!

    Tell us about it!

    2Reply
  • Sabrina Laplante
    Real Estate Investor · Squaw Valley, CA · Member since 2012 · 101 posts · 17 votes
    13y

    Sean, we are in CALI, yes mobile homes are more expensive here. I had been looking in the Indiana market for awhile to do some Lonnie Deals there, and the mobiles that I was finding for $2,000 there were the same ones here in our local area, going for $12,000 plus!!! It is crazy, and yes the lot rent out there was around $200, whereas here around $600 or so. However, do not be afraid of the asking price. There were mobile homes back there that they started out asking $8,000 and before I got off the phone with them, had them down to $2,500...Play with it, and see what you come up with. Just remember, that lot rent will eat you alive if yo don't have a buyer set up in place first. Best of luck!!

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    13y

    Hope you're being careful in those Lonnie deals now, esay to get in trouble.

    I financed a park, the guy worked a deal with MH movers, many get hauled off and you can pick them up for moving fees and he picked them up pretty cheap and got titles.

    I'd begin in real houses, much less pain inflicted upon yourself in the long run.

    0Reply
  • Sam Parkins
    Contractor · Charlottesville, VA · Member since 2010 · 99 posts · 63 votes
    13y

    Not to ruffle any feathers here, but in my market it can be tough to find affordable homes. A mobile home can be purchased for $5,000 or less with minimal marketing costs, whereas without a big marketing machine the cheapest home I've found is $20,000 - and it needed a well and septic. Yes, the opportunity to flip foreclosures can be done at $1000 or less property depending, but the folks I know profiting on that have multiple employees making as many offers per day as possible and playing the numbers game.

    I'll go out on a limb here and say that I'm sure MOST investors would want to work on houses, but you need more money to start and continue that business. Yes, there is wholesaling and I'm sure a myriad of other ways to get cheap homes, but even eyeing all the foreclosures and short sales it usually requires more cash to get into such deals. Not to mention in ALL the markets in Virginia there are MANY more competitors looking for homes than looking for mobile homes.

    And to use my own "argument" against me, yes one can move out from a target area via a radius search. In nowhere Virginia I'm working on a $9,000 land and mobile home deal right now. It's not a house and is a good deal, but it's still only accessible to me after being in business for a while as personally speaking I started with no cash.

    Again, not to speak for everyone or try to "start anything", but personally I'd love to get involved with homes but the ease of entry, or lack of barrier makes it much easier for the cash strapped to get involved in mobile homes. It is certainly possible to get cheap homes and even run a business like that on the cheap, but I'd contend to say that apples to apples it would be cheaper to get involved in a mobile home deal. I'd also contend the seller urgency is much more evident for mobile homes. Making an assumption here: usually a dirt cheap home no longer has a seller but rather a bank or such.

    This isn't to say that one could have a different strategy if the opportunity presented itself with a partner. I would contend to go for houses all day if one could partner with some money.

    And for those of you needing information on
    "Hope you're being careful in those Lonnie deals now, easy to get in trouble." from Bill Gulley he has imparted a TON of information on the matter on other posts. There is a LOT to it and if you plan to do a "Lonnie" you should certainly search for Bill's comments on other posts!

    1Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y

    I read the Lonnie books in the late 1990s and was so bummed to learn that regardless of price of the MH, the park fees within 50 miles of me were all over $450, even back then. Here in Santa Barbara, plenty of MHs in the nicer parks are totally finance-able and sell in the $250-350K range, less in the over-55 parks.

    There are plenty of super cheap houses in many parts of CA, so it wasn't hard to apply Lonnie's strategy to SFHs. But I was so turned off by the landlord challenges and lender issues in that price range that I turned to re-selling in most cases. Let the people who think a good time is renting or carrying back a note for $350/mo do that job. I'll just find the deals.

    0Reply
  • Marc D.
    Accountant · Woodland Park, CO · Member since 2012 · 40 posts · 10 votes
    13y

    I've done a ton of these. The key is to talk to the park manager and convince them that you will take their junk and make it produce lot rent. Most managers will give you home for free if you can convince them that you are the real deal. Offer to take the junkiest one and prove what you can do.

    I usually work out a moratorium on payments while I fix it up, so I am only in it for materials and labor.

    2Reply
  • Josh McCullough
    Investor · Jackson, GA · Member since 2011 · 228 posts · 126 votes
    13y

    We have $2000 mobile homes all day, every day here in Georgia. Lots of good deals. Finding good buyers is the hard part.

    1Reply
  • Shawn Cottle
    Realtor · Ogden, UT · Member since 2013 · 11 posts · 12 votes
    12y
    I just bought a 2/1 for $750. It needs about $2500 in fix up but I should be able to sell it for minimum of $10k when it's done. They are out there you just need to keep searching and not give up. Make good with the community park manager and that will help you out tremendously. The manager can be your best friend, and help you find that great deal. Best of luck!
    0Reply
  • Account Closed
    Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
    12y

    Here in Dallas some of the park owners are doing a wrap around on their mobile homes and selling them to buyers who cannot get a loan other wise because of the DF act. I spoke with my banker who is high up to the food chain, and he said that as long as the payment is being made, he will not do a due on sale clause, and his final remark was it is better let someone make the payment then start a foreclosure.

    Joe Gore

    0Reply
  • Sean Kremer
    Real Estate Investor · Milford, NE · Member since 2011 · 201 posts · 140 votes
    12y

    Unless its in pristine condition, $2000 is about all I will pay for any mobile home here. I'll tell you that 90% of the mobile homes we end up buying, the owner usually starts at $20,000 and after time when reality hits them they end up coming our way. These are on homes that need to be moved, which is what I like. I tell them I'll stop over with cash, three guys and in two hours or less the mobile home is headed down the road with us and is out of their life. They have trouble believing us till they see my crew get to work. Right now there is a single wide mobile home on its own lot in a small town next to me, they are asking 10 thousand for the home and the land. I will probably buy this one, put $5000 into it and sell it on contract or lease to own for $30,000.

    Sean K

    0Reply
  • Thang Cao
    Fuquay Varina, NC · Member since 2015 · 38 posts · 7 votes
    11y

    bumping this thread because I'm running into this situation now.. you all just saved me a bunch of money and headaches from wasting my direct mail marketing money by marketing in an already too populated zone.  Gonna go farther out into the sticks now..

    @Sam Parkins thanks for your input and everyone else too.

    @Sean Dezoysa , did you have better results after fanning out into wilderness? :)

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Thang Cao

      I have 4 in a park I just bought In Oregon and I will give them to you ... FREE you just pay space rent fix em up and rent em out.

    Podcast Guest on Show #222
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    1Reply
  • Thang Cao
    Fuquay Varina, NC · Member since 2015 · 38 posts · 7 votes
    11y

    lol, thanks @Jay Hinrichs, unfortunately I'm not at capacity to invest THAT far out... yet....

    0Reply
  • Megan Ford
    Norcross, GA · Member since 2016 · 1 post · 0 votes
    10y
    Originally posted by @Josh McCullough:

    We have $2000 mobile homes all day, every day here in Georgia. Lots of good deals. Finding good buyers is the hard part.

     Hi Josh, I'm interested in buying a mobile home. In looking for a double wide.

    0Reply
  • Marc Faulkner
    Investor · Kalamazoo, MI · Member since 2009 · 1k+ posts · 495 votes
    10y

    I get at least two a year for free that are worth something so I would say YES, they sure are! 

    0Reply
  • Rich Ferradino
    Investor · San Antonio, TX · Member since 2013 · 206 posts · 71 votes
    10y

    there are but single wides alot easier to find for that price. The cleaner, newer, and better looking double wides,1990s and newer, are way easier to sell and that's where you're going to have more of your cash buyers.

    0Reply
  • Rich Ferradino
    Investor · San Antonio, TX · Member since 2013 · 206 posts · 71 votes
    10y

    It's going to cost you a least $4k just to tear down, transport, setup, and level and doublewide.

    1Reply
  • John Turner
    St Thomas, Ontario · Member since 2015 · 136 posts · 33 votes
    10y
    Originally posted by @Jay Hinrichs:

    @Thang Cao

      I have 4 in a park I just bought In Oregon and I will give them to you ... FREE you just pay space rent fix em up and rent em out.

     @Jay Hinrichs

    still have these or others available?

    0Reply
  • Todd Fithian
    Investor · Riverside, CA · Member since 2014 · 239 posts · 177 votes
    10y
    I myself just came across a few for $500 to $3000 in decent neighborhoods in southern California believe it or not. You can definitely find them, but i was having much better luck talking with the owners face to face. One owner was selling his for $5k, and just by shooting the breeze with him he said he'd get rid of it for $2500 if someone came along. Without even haggling him! So yes I'd definitely keep lookin :)
    0Reply
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