investing in Mobile homes for cash flow

Member since 2021 · 45 posts · 30 votes

What are your thoughts? I decided I wanted to start off locally by investing in cash flow. So I wanted to start with mobile homes, What are your experiences (Pros and Cons) in purchasing mobile homes to rent out? They seem to be in my current price point because I just don't want to put 25% on a home with an interest rate of 7 to 8% monthly payment. So my strategy is, to buy a mobile home for cash, cash flow it and build the money I need to finance a multi-unit out of state. But I heard there are eternal fees and most are 55+, Will they have an issue with me renting with section 8? All advice is welcome, please.

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Jt Marting

Developer · Dallas, TX · Member since 2021 · 52 posts · 21 votes

I am also very interested

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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
3y
Some people are able to manage lower end tenants, some are not. That’s the first question you must ask yourself. Ever been to an abandoned trailer and while cleaning it out found a dead body under debris? Ever get a call from law enforcement informing you that the police raided your tenant and found crack and are keeping your property from being re leased? Ever have to decide whether to throw out a mother and 3 babies with nowhere to go at Christmas because her husband ran off to Utah with the babysitter? Ever get a call from a neighbor informing you that your tenant is dismantling your mobile home one piece at a time? I have….which is why I no longer deal in lower end residential properties.
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Jt Marting
Developer · Dallas, TX · Member since 2021 · 52 posts · 21 votes
3y
I am also very interested
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Logan M.
Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
3y
The biggest issues I have had is 1. Bad Tenants, you inherit 2. Difficulties with rent collection and 3. Insuring the homes themselves can be really hard, if not impossible.
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Robert E BoginoPro Member
Real Estate Agent · Alpharetta, GA · Member since 2017 · 151 posts · 76 votes
3y
Quote from @Nikki Dupoux St Jean:

What are your thoughts? I decided I wanted to start off locally by investing in cash flow. So I wanted to start with mobile homes, What are your experiences (Pros and Cons) in purchasing mobile homes to rent out? They seem to be in my current price point because I just don't want to put 25% on a home with an interest rate of 7 to 8% monthly payment. So my strategy is, to buy a mobile home for cash, cash flow it and build the money I need to finance a multi-unit out of state. But I heard there are eternal fees and most are 55+, Will they have an issue with me renting with section 8? All advice is welcome, please.

Sounds like you are only looking into the park model? Or are you considering mobile homes attached to land?
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Rachel H.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
3y
@Nikki Dupoux St Jean If you're looking into mobile home investing, it's best to learn your market and start talking to people who work in the niche (i.e. mobile home dealerships, mobile home park managers and owners, etc).
From here, you'll get a better idea of the supply and demand for affordable housing in your area. Also, it'll help you to get market insight into the niche locally as a whole.
If you plan to pursue investing in mobile homes, then it's best to check out a few communities and pick those where you feel comfortable in and attract clientele that work with your personality.
For starters, you can do a small deal first to see if you like the niche. From there, you'll get the experience and know what's involved. Then, you can decide whether or not you want to continue doing deals in the niche.
Personally, I've been in the niche since 2007. Like any business, it has ups and downs. Though, overall it's been pretty profitable.
Hope that helps!
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