Southern California Mobile Home Flips- Advice?

Question

Hey everyone! Hope all is going well. I'm a newer investor and want to gain some experience in flipping properties in the Southern CA area, specifically Orange County & Long beach. Interested to hear some advice from anyone who's been successful in this area and maybe point me in the right direction to further educate myself. I have my RE license and I've had a number of clients interested in buying mobile homes if they want to own but are on a budget.

Also interested if anyone has had success using a hard money lender to flip mobile homes around this area and if they were able to include construction costs in their loan amount?

Thanks in advance!

Also interested if anyone has had success using a hard money lender to flip mobile homes around this area and if they were able to include construction costs in their loan amount?

Thanks in advance!

Aaron K. · Answer

@Isaac Lipscomb biggest tip is that understand anything in that area is likely to have lot rent of $2k per month or more which can really add to your holding costs.  People buying these to live in understand they are sacrificing quality for location most of the time, the appeal is that they are relatively inexpensive and close to the beach.  You won't get as much of a premium for upgrades as you would in a stick built house, the vast majority of the value is in the location.

Isaac Lipscomb · Answer

@Rachel H. Thanks for the tip. Definitely will do some research on the market to see how long homes sit. Factoring in the land lease to this for a few months is going to play a big factor in whether I buy or not. Much appreciated!

@Jo-Ann Lapin I was just looking up hard money lenders this morning. Would love to connect to hear more about your requirements for lending & what rates you offer, your companies LTV, etc. Also, I have a few general questions for you. Maybe we can connect this week?

Jacob Repreza · Answer

I'm going to comment so I can follow the thread. I know people who flip mobile homes elsewhere but i'm really interested in seeing if anyone does it here in California, especially OC and LA.

Jo-Ann Lapin · Answer

Great topic and questions . We finance on them however the land must be owned they can even be pre  1976.

Rachel H. · Answer

@Isaac Lipscomb You'll probably have to research the market on where you want to buy and see how fast these deals go. This will give you an idea of your holding time and costs when you're out looking for a buyer. Another option is to work with investors who want to buy something for cash flow. Though, you'll have to figure in their numbers on what they want to buy for and calculate that into the deal. Hope that helps!

Isaac Lipscomb · Answer

@Aaron K. thanks for the tip! Much appreciated.

Southern California Mobile Home Flips- Advice?

Most Popular Reply