Mobile Home Pivot

[Nadene Long]

I have experience flipping houses and currently own a small portfolio of rental properties, but I’m considering a pivot into mobile homes.

I have access to distressed mobile homes that can be purchased for $1,000–$10,000. A deal I’m evaluating would look something like this:

Purchase: $5,000
Rehab: $25,000
All-in: $30,000
Rent: $1,500/month
Lot rent: $785/month

I would likely use a HELOC at around 5% to fund the purchase and rehab.

For those experienced in mobile homes:

• Does this model make sense when you don’t own the land?
• Would you use a HELOC for this type of investment?
• If your long-term goal was to own a small mobile home park or affordable housing community, would you start by acquiring homes or focus on acquiring land first?

I’d appreciate any insights from those who have successfully made the transition into mobile homes.