Hello, I live in the Portland Oregon area and would like to purchase a mobile home to flip for cash. I have cash to invest at this time for a flip project. Any input on the best way to do this would be greatly appreciated.
Hey Ben, here is what I would do. Call all the mobile parks around and see if they know of any of their tenants who are trying to sell, or if they have any park owned homes they are trying to sell. Sometimes people who get way behind on space rent will just abandon their old grungy mobile and then the park owners have to either fix it or dismantle it. You may find a park owner who would let you fix n flip a mobile they ended up with. Considering it is expensive to dismantle an old trailer (if pre HUD there is nowhere to move it to and mobile home moving companies often won't move a pre HUD trailer anyway), the park owner that is facing the expense of dismantling an old mobile might "equity share" with you; you fix it up and they/you sell it and you split the profits. With only $5k you are going to be looking at the lowest of the low old grungy trailers so if $5k is all you have to purchase plus renovate that is a pretty tight budget. That is why I suggest you convince a park owner to partner with you so the entire $5k can go towards materials. I assume you will do all the work yourself. Old mobile homes are notorious for leaking roofs at the wall seam and then the water rots the rafters, the wall studs, and then the floor. Sometimes even a "free" mobile home isn't a good deal.
If you find a park tenant who is selling their mobile be sure to talk with the park owners and make sure they are ok with your fix n flip plan. Don't try to "sneak" this by the park owners. (If you want to know why I can explain...)
Based on the market you are looking to enter with only 5k to invest it is highly unlikely there is any profit in flipping mobile homes. In my market I can buy a home for 10K invest an additional 40K in reno and flip for 100K.
It is entirely dependant on the resale mobile home markets. Ther will be a cap on th evalue regardless of how much you upgrade a unit.
You had better know your market very well before you consider investing in a flip.
Hey @Ben Naught love that you're thinking like this. MHs can be great fix and flips and if I had my choice between a stick built and a mh flip, I would choose mh all day. With 5K you are limited, but it is still very possible to get a deal done. There are multiple ways to do this, but to start, both Rachel and Gordon provide good advice above. First, get a sense of the market, where the parks are located and what kind of parks. Also, you'll want to know what single wide and double wides are selling for in general. Drive the market - drive through as many parks as you can and start to learn as much as you can. Figure out what the lot rents are in different areas and what kind of homes are in the park. In other words, just get to know mhs and parks. Next step is to start talking to managers int he parks. Explain what it is you are looking to do and ask if they know of anyone who is interested in selling their homes. Make it clear you are looking to partner with the park owner/manager to improve their community and you have no intention of moving the home out. Several parks will not let you do this, so be ready for it. However, when you do come across the parks that do allow this, most likely this is where you will find the deals. Once you get a lead, meet with the owner and figure out if you can profit from it. Obviously this is just the start of the process. With 5k you may want to think about partnering with someone to who has capital to get things going. Partnerships can be great and can you jump start your investing. Or, you can acquire homes creatively with payments and flip as investor special. Many options here, but the key is taking action. It's definitely possible and very likely you can be successful if you work hard enough. Good luck.