All Forum Posts by: Bill Neves

Some say they go down in value so avoid them. Others like me, do investing with them. They are low entry and exposure compared to stick built. They are short term investment vs long term like stick built. But cash flow wise, you can get way more bang for your investing buck with mobiles. Best to work with someone who has done a few. There are differences in construction and repairs.

Some people invest for assets and some for cash flow. See below for cash flow difference.

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Posted previously:

Mobile Homes are a good investment if you're so inclined.

Although they are reported to go down in value. I don't see it that way. It's an apples and oranges deal. It is a short term investment, compared to a stick built rental over several years.

However, a typical $100k rental may return $300/mo cash flow after expenses.

Same $100k could gain you 5 or even 10 mobile homes with the same $300/mo cash flow EACH. Plus most people will need a loan for each rental purchase. If you do mobiles, you will sell some for cash, as many I've done, and can buy some outright, no payments, better cash flow.

If one rental is empty you have 100% vacancy. If you have 10 mobile homes and 1 is empty. That's 10% vacancy. Less exposure.

$1500-$3000 cash flow per month on 5-10 mobiles vs $300 for one rental. Which would you prefer? You may only get 4-5 years from each mobile unit. Just replace it and keep going.

Personal preference but there are several people on this blog who do very well with mobiles. John Fedro (frequent poster here) is a great example.

Owner - this is the toughest park I've worked in. I get along fine with most managers and owners I've dealt with. Just this one is tough. There are always anomalies. 

Guru - One of my favorite gurus is Ron LeGrande. I learned a lot about stick built real estate through him. However, I avoided Mobile Homes (MHs) for years because Ron said "If it came in on wheels it's a trailer. Never mess with them. Period!" So I didn't until 2013. Wish I had a long time ago.

Predatory - I had a park owner give me a hard time for buying very low and selling higher. I said I prefer to buy when people HAVE to sell rather than when they WANT to sell.

Example: I offered a couple $5k for their 3 bed/1 ba mobile home. They said they WANTED $7k and wouldn't sell. I asked them to call, if they didn't sell it. 2 months later they called. Offered it to me for $5k as I had offered. I had purchased 4 other MHs since then and didn't need it or want it now. It was the last week of the month. They were already late on rent. Now they HAVE to sell. We agreed on $750! Same home, same condition. The seller got $182 and the rest went to park rent. Am I predatory? Again, I prefer to buy when people HAVE to sell rather than when they WANT to sell.

Park owner told me I take advantage of people when they're desperate. I just negotiate smart when I can. I didn't put them in the situation they were in. I just fixed it. And there's a cost to everything. 

I asked the park owner if she lets people live there indefinitely when late on rent. Of course not. I told her she takes advantage of people when they're desperate. She doesn't talk to me much any more.

Regional differences - I use Tyler Farr - 503-887-4450 in Oregon and Washington. He may cover other areas. Not sure. I am on a Commercial Rental product with Foremost on several mobile home properties. You can be rehabbing and under $50k in a park. In my area approx $30/mo for $20k coverage. $100 deductible for damage or theft and $500k liability.

I keep the insurance on when selling on payments. When paid off, or when I sell for cash, the agent can call them and put them on their own plan.

When on payments, I cover insurance and tax to make sure it gets paid. Add to payments.

Hi Keenan

Welcome. 

Mobile Homes are a good investment if you're so inclined. 

Although they are reported to go down in value. I don't see it that way. It's an apples and oranges deal. It is a short term investment, compared to a stick built rental over several years. 

However, a typical $100k rental may return $300/mo cash flow after expenses.

Same $100k could gain you 5 or even 10 mobile homes with the same $300/mo cash flow each. Plus most people will need a loan for each rental purchase. If you do mobiles, you will sell some for cash, as many I've done, and can buy some outright, no payments, better cash flow.

If one rental is empty you have 100% vacancy. If you have 10 mobile homes and 1 is empty. That's 10% vacancy. Less exposure.

$1500-$3000 cash flow per month vs $300. Which would you prefer? You may only get 4-5 years from each unit. Just replace it and keep going. 

Personal preference but there are several people on this blog who do very well with mobiles. John Fedro (prior post) is a good example.

Mobile home investing is profitable. 

Minus - As Curt above says you have to watch doing Lonnie deals. Lonnie Scruggs Deals on Wheels if you aren't familiar. 

Plus - Repairs are inexpensive. No title usually. No realtor unless you want. Very smooth if you work it right.

There are lots of blog posts here. Check out John Fedro's posts. Very knowledgeable, has a training program and has been doing them for over 11 years. I'm just at 2 years.

As already mentioned, Bandit signs work. Like throwing out a net in a river or ocean. You can get a lot but some you have to throw back.

Personally, I only use them to sell. Buying I use various processes.

Busy intersections with stop lights seem to work best. If you are looking to buy, any busy street intersection is good. If selling, put them on main street corners with arrows leading to the home you are selling.

I use an extention if I put them on telephone poles. Less likely to get ripped down or removed. However....

Usually code enforcement is tougher if you put them on telephone poles. It's considered littering or defacing city property in many cities. Some cities, counties or areas don't restrict it so you're ok. Free standing can still be against code but usually less potential fine. I keep saying usually because you may get a hard butt who nails you. When they call I apologize and say "I am sooo sorry. I had my son put them out. I'll get them removed immediately. Where was it again?" And they usually will let it slide 1st time. After that you're on your own.

Best way I've found to avoid code enforcement, and potential fines, is to do the garage sale process. Put them out Friday afternoon and take them down Sunday afternoon/evening. Code enforcement usually doesn't work weekends.... but they might...

Have fun!

23 years old when I bought my first house. 48 when I bought my first mobile home. Now, at age 64, I buy mobiles all the time. Just bought one last week and negotiating for another this week.

@Dwight Crocker, @Joseph Ball,

Secure a Mortgage Loan Originator MLO to work with. Local REIA probably has someone workable. It may cost you $300-$500 per deal. Add it to the deal as a loan origination fee like a stick built loan. Borrowers pay that on every financed stick built house. Why not mobiles? Then do the Lonnie deals. The interest is an caution. Just build it into the profit and do zero or lower interest.

I made one posting to the local REIA forum and found a good MLO locally. She said "It's 3 pieces of paper. No big deal!"

@Curt Smith Thanks for the car tip. One technique, I used for years on Lease Options was to 'forget a vital piece of paperwork' when taking an application. I'd 'swing by' their current residence, 'since I was in the area anyway' and see how the place looked. If they didn't invite me in, I'd ask for a glass of water or use the restroom. If scary, unfortunately they didn't qualify. Checking their car would save a drive. Thanks!

Mobile homes can be all over the map. They are different from stick built in that comps are hard to figure. Lots of folks say they go down in value. But it's eye of the beholder.

I like them because you can do buy and sell without escrow. Caution here though.

You would look at them like a house in regards to repairs. Can you do the needed repairs? Do you want to? Getting one in move in condition would obviously be easier than dropping $5k into rehab and 1 or 2 months of work.

Check out John Fedro on this forum. He has tons of videos on Youtube on all this.