Trailer home as a start. --- (0% xp in real estate)

Member since 2022 · 1 post · 1 vote

I found a mobile home online for $25,000, est. mortgage: $210/mo*, 3 bed 1 bath, only considering the financial prospect, is this a good start for a beginning investor that only makes 368 extra cash a month? (This is my first question about real estate investing, please forgive my ignorance if I don't ask the right type of question.)

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Chris Webb

Investor · Central Virginia · Member since 2020 · 393 posts · 253 votes

Hi @Steven Webster, I would search the BP forums for mobile homes and see what comes up. I have thought about investing in them as they return a bit higher in my market. What is the end goal? Is it cash flow? Is it paying down the debt? I ask these questions all the time before pulling the trigger and find my one goal, if the property meets the one criteria, I invest.

I find that often times we can get bogged down in chasing multiple things - debt paydown, appreciation, etc. Focus on one thing and if it will change your life for the better does this investment meet this one thing.

Hope this helps.

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Chris Webb
Investor · Central Virginia · Member since 2020 · 393 posts · 253 votes
4y
Hi @Steven Webster, I would search the BP forums for mobile homes and see what comes up. I have thought about investing in them as they return a bit higher in my market. What is the end goal? Is it cash flow? Is it paying down the debt? I ask these questions all the time before pulling the trigger and find my one goal, if the property meets the one criteria, I invest.
I find that often times we can get bogged down in chasing multiple things - debt paydown, appreciation, etc. Focus on one thing and if it will change your life for the better does this investment meet this one thing.
Hope this helps.
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Natalie KolodijBusiness Member
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Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
4y
Mobile homes can be good little cash flow boxes- but won't gain in value like a normal stick built home.

Also look into the year, you can't finance/don't want 1976 or older.

And keep in mind all repairs/materials for them are odd shapes/sizes/materials
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Carlos Asuaje
Member since 2021 · 13 posts · 12 votes
4y
These are always interesting to look at. I think you also have to consider your market (who/quality of your tenants will be in the home), how much the land lease is for the property and how often the mobile home park has changed the pricing on their land leases. I personally has stayed away only because of those reasons and also not have the benefit of long term appreciation compared to normal homes. There can be money made though! It all has to be in line with your strategy
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Mike ReynoldsPro Member
construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
4y
Originally posted by @Steven Webster:
I found a mobile home online for $25,000, est. mortgage: $210/mo*, 3 bed 1 bath, only considering the financial prospect, is this a good start for a beginning investor that only makes 368 extra cash a month? (This is my first question about real estate investing, please forgive my ignorance if I don't ask the right type of question.)

The right answer is... It depends.
Are you buying the land to go with this house or do you also have to pay lot rent to someone else?
What does your state require for taxes? Insurance?
To me, if the numbers run good and it's a great deal I don't really care if it's a mobile home or a McMansion. My first deal was a mobile home on 1/2 acre for 25k.
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