Investor · Bakersfield, CA · Member since 2016 · 16 posts · 1 vote
My name is Derek Vaughn, currently sales manager for a citrus company in Bakersfield, part time R/E investor and full time explorer. Always looking to make new friends with passion, drive, and advice in the RE community. I am currently living in my second home, own 2 rental properties, and I have just finished my first flip (which I learned a lot from). My goals are for real estate investing to become my full time job, so that I have more time to travel the world and be in control of my income. I am also interested if anyone has any experience in buying, selling, or financing mobile homes, which I have started to research. Look forward to joining you all on this adventure!
Bakersfield, CA · Member since 2015 · 45 posts · 9 votes
10y
welcome @Derek Vaughn sounds like you are well on your way. I'm also in Bakersfield but I'm a little newer than you. Still working on my first deal. Glad to have more people to interface with though on my journey.
Where are your current rentals? I'm evaluating different areas of Bakersfield and trying to determine where to focus my investing (I'm not from Bakersfield)
Flipper/Rehabber · Lake Isabella, CA · Member since 2011 · 969 posts · 488 votes
10y
Hi Derek, I have rentals just east of you around the Lake Isabella area. I have several mobile homes that I own as rentals (and also stick built and commercial). There are a ton of variables when talking about investing in mobile homes...rented or owned land, what year was the home built (pre hud?). On the surface, the cash flow is appealing but there are some major downsides compared to stick built homes.
There is a big difference in quality. I am a full-time home inspector and I have inspected many mobiles. Overall the lower quality and lighter weight materials don't last as long as higher quality materials more often found on stick built homes.
Polybutylene pipe and AL wiring are much more common in mobiles than SFH, both are problematic.
Financing mobile homes also look great on paper but there are many pit falls in practice as well. I flipped and sold a park home many years ago. The park management ended up being a big liability. Becuase I met with them before the deal and we had a written agreement I thought I was covered. Overall I am not a fan of others having that much control over my deals. But even beyond that the numbers are too small to be worth my time. I would rather spend the same time/energy on deals with much larger numbers.
I think there is potential for profit, but understanding many of the issues specific to this property type can be very helpful.
Bakersfield, CA · Member since 2015 · 45 posts · 9 votes
10y
welcome @Derek Vaughn sounds like you are well on your way. I'm also in Bakersfield but I'm a little newer than you. Still working on my first deal. Glad to have more people to interface with though on my journey.
Where are your current rentals? I'm evaluating different areas of Bakersfield and trying to determine where to focus my investing (I'm not from Bakersfield)
Investor · Bakersfield, CA · Member since 2016 · 16 posts · 1 vote
10y
Thanks for the advice @Gene Hacker , that is already a ton of great advice. I had started reading Deals on Wheels, but I never got through it, and he was talking more about financing the mobile home, but he was talking about mobile homes in the middle of the country that were closer to 5k, which wouldn't really work out here. I agree with you on spending time and energy on something that is going to return more and hopefully have less headaches.
@Matt Owen - I have one up near Bakersfield College and the other is in the older part of Rosedale that they used to call Green Acres. A lot of people that grew up in those areas like it, and they tend to take really good care of them.
Flipper/Rehabber · Lake Isabella, CA · Member since 2011 · 969 posts · 488 votes
10y
I like what Lonnie taught in "Deals on Wheels" and I think it is a good read for any investor that want another creative way to create profit in the real estate world.
Sub 5k mobiles are very common in parks in many areas of rural Kern County so the strategy is very possible here. IMO the strategy is better suited for people that own parks rather than people trying to do Lonnie deals in parks owned/managed by others.
I have had success doing the same thing with older homes on private land. I sell the home and rent the buyer my land. It get about the same as I would for rent but the buyer is responsible for all repairs to their home. Obviously, it limits my exit strategies with the land but it has been very profitable for me. I have one lot/home where I have had rent coming in for 9 years.