All Forum Posts by: Bill Neves

@Mike G. @Blair Russell

Blair has a valid point. Plus if in a park, you always have to check the park rules for options.

For instance, I have a winter place in Arizona. 700 units, in that park, that you can rent BUT the renters have to be approved by the park. Most parks have an approval requirement. Criminal background, credit score, base income and no evictions. Airbnb folks may not want to do that and may not pass that check.

I also live in Washington state and most parks there do NOT allow rentals. Residents must be owners or be buying their place.

You can definitely sell on payments for cash flow. Consider local rent (average in US is over $1200/mo for a 1 bedroom). You say rent is $400-600. So if your payment is $400/mo (plus the rent) you should be able to rent, or sell on payments, all day long.

Plus a mobile will have 4 walls, floor, ceiling, yard for the kids, private parking, etc. Beats a 1 bedroom for $1200+/mo any day.

@Mike G.

Hello. 'Someone' has to pay for the land. As was mentioned, either you pay space rent in a park or buy land or city/county lot and buy or put a mobile home.

The advantage to mobiles in parks is low cost. If you look at park space rent and cost of mobile VS. apartment rent.... The mobile home deal is better for people seeking affordable housing.

Lots of people make as much profit on a mobile deal as others make on stick built deals.

Yell if you have more questions.

Have fun!

@Ryan Taylor

Hello and welcome.

It would be wise to get a money partner to assist with the deal. Local real estate club would have folks with money who will fund a good deal and partner with you.

Your income will likely not allow you to qualify in a park. They usually require 3x monthly rent to make sure rent can be paid.

Curious - how did you arrive at the idea that it is $75k below market? That sounds pretty high for a 2 bedroom. Best to do 3 bedrooms.
Is it in a senior (over 55) park? 2 bedrooms are ok in senior parks.
How much is the rent?
What repairs are needed if any?
Caution before proceeding - can you rent units in the park? Some allow it, some don't.

Yell if you have any questions.

Good luck with it.

Most parks will ask for a background check - criminal, eviction and credit on the 1st deal in that park. Feedback when I've asked is that they need to know who they're dealing with.

Being a business do not mean they'll get the rent. I've worked in a few parks where the owner/manager said they had investors in the past who didn't pay rent and then walked away, leaving them with an unfinished project to deal with.

Thought I'd add this, although I personally don't have a dog in the hunt....

I have a friend in the Phoenix area, who got the course and is making 6 figures doing this. Since we're friends, he showed me his lists and mailers, spreadsheet and checks received monthly. He's totally happy doing the empty land biz. I'm happy doing mobile homes but it appears that the land biz works for those who work it.

Manufactured homes as a rule sell for much less than stick built. If it's competing with similar priced stick built houses in the area, you are likely fighting that issue.

Ask the realtor what is the feedback from the showings. Get an idea of presentation, price, etc. We stage ours lightly with curtain sheers, hand towels, rugs, silk plants, no furniture.

Not sure if you're marketing. We use CL ads, bandit signs and local free newspapers when needed.

One way we've sold them to get a better (higher) price is on payments. However, I'm talking about $40-60k, not over $250k.

@Christopher Hamlett

Hello. I don't have experience there. But I do in several other states.

How long have you had it? How long have you had it for sale?
Prices comparable in the area? Not necessarily realtor comps.
Are you marketing? How and how much?
Does it need work?
Is it on land or in a park?

@Carrie Cavins

Hi. REIA = Real Estate Investor Association. Local Investor club

@Ben Vonderwahl

Welcome aboard. Glad to hear another mobile home investor. Starting younger is always a good track to run.

As was said there is a ton of info in the mobile home section of this site. Enjoy!

Good luck and have fun!

@Chad C. 

Welcome to the group.

How did I "convince yourself to invest in manufactured homes"?

I agree with @Rachel H. I had a lot of stick built experience (160 deals) and looked to mobile homes as a hidden market, with low to NO competition investment avenue. Low cost of entry with great ROI.

For years, while I invested in stick built, I heard (and said) all the stuff about trailer trash, crack alley, low life, depreciate, etc. Found that NOT to be the case. 

I choose to deal mostly in mobile homes that are in parks. Why? Cost to the end buyer is MUCH lower than buying with land. If you research this.... AFFORDABLE HOUSING shortage is almost in a crisis situation in many areas. People are spending HALF of their take home for apartments in a building with noisy neighbors, no yard for the kids, no private parking, etc.

It's affordable housing that is mid point between rentals and buying a stick built or mobile on land. LOTS of people cannot afford those properties. But can afford a mobile home in a park. They rent in the park. But after the home is paid off or bought for cash, park rent is about half or less of apartment rent in most areas.

There are tons of investors who insist that other investors avoid them at all costs. That's why no competition.

A recent project of mine, in a senior park (over 55) had a lady across the street who drove a Lexus. My wife drives a Lexus. I like to meet the neighbors and tell them what we're doing. Many times, they will refer a buyer for our projects. 

I asked the lady, why she was living 'here'. Obviously, she could afford 'better'. She said she sold her $400k 3500 sq ft home with payments because taxes alone were $5k/yr. ($416/mo) Lots of maintenance and she was single and didn't like doing it herself. So she sold it, found a nice manufactured home in a nice park. Rent was $400/mo less than taxes. She has NO house payment. 

She could travel anytime she wanted and her neighbors watch her home. She was FREE of the stick built burden. Her previous payments pay for her trips.

Like your question addresses, I started out nervous about mobile homes, too. But a couple deals into the mobile home market and I was sold. We are currently approaching our 50th mobile home project and will obviously keep on trucking with them. 

We live in a very nice stick built home but invest in mobiles.

Hope that answer part of how and why I was I was able to "convince yourself to invest in mobile homes".

Have fun!