In last week’s article we discussed the importance of Investing with the path of least resistance when it comes to investing in individual mobile homes inside preexisting mobile home communities. In last week’s article we discussed the importance of investing in the right mobile home park when getting started. Many of the tips and advice given were in the vein of:
- Saving money
- Getting started quickly
- Being able to target the most buyers possible
- Sell for the most profit possible while still keeping the sale Win-Win
In this article we are going to have the same conversation with regards to the individual mobile homes you are purchasing in said parks. The below list is a quick outline for the beginner mobile home investor with regards to which mobile homes are a best investment for your first few deals.
How to Analyze a Real Estate Deal
Deal analysis is one of the best ways to learn real estate investing and it comes down to fundamental comfort in estimating expenses, rents, and cash flow. This guide will give you the knowledge you need to begin analyzing properties with confidence.
1. Size of bedrooms:
In a past article we discussed the Notoriously small bedroom in some single-wide mobile homes. Make sure that your first investment mobile home does not have one of these small bedrooms. These small bedrooms are a real problem when it comes to reselling the mobile home to a buyer expecting to be able to use every bedroom.
2. Number of bedrooms:
In almost every market:
- 4 bedrooms sell faster than 3 bedrooms
- 3 bedrooms sell faster than 2 bedrooms
- 2 bedrooms sell faster than 1 bedrooms
For this reason aim to make your first mobile home investment purchase a 3 bedroom. 4 bedrooms are rare however every lucrative if you are able to purchase one at the price and terms you need to make the deal Win-Win.
3. Age of the property:
Every mobile home has a buyer for it. With that said let us focus today’s article on the idea of being able to sell to the most amount of buyers that would be interested in this specific mobile home. Today’s floor plans are more open and spacious than the floor plans of past decades.
- Mobile homes from the 2000’s you should consider new and easiest to sell assuming in good shape and with attractive terms.
- Mobile homes from the 1990’s you should consider almost new and easy to sell assuming in good shape and with attractive terms.
- Mobile homes from the 1980’s you should consider borderline average/old and are still relatively easy to sell assuming in good shape and with attractive terms.
- Mobile homes from the 1970’s you should consider old and small, and are more difficult to sell assuming in good shape and with attractive terms.
- Mobile homes from the 1960’s you should consider functionally-obsolescent and are the most difficult to sell assuming in good shape and with attractive terms..
As stated in the bullets above the condition of your first few mobile homes at the time of resale should be in nice and very livable condition to target the majority of buyers. This is because most buyers with money and good income will want to purchase a mobile home that is ready to be moved into versus a mobile home that is a handyman special.
In addition to reselling your first few investment properties in nice and clean condition to your end buyers, try to aim for your first few properties to be clean and presentable when you find the home as well. Less repairs mean a faster sale, less holding time, and less rehab costs for you.
For a full priced offer it can be wise to include appliances. Buyers may or may not want to have appliances included however it can be good to offer these with the sale of the home. Try to negotiate that these appliances convey with the sale when you originally purchase the investment mobile home from your seller.
6. Size of home
Single-wide or double-wide does not matter as much as an investor would think when it comes to reselling a mobile home quickly. If the rooms are a good size and there is ample space in the living room and kitchen then both single-wides and double-wides are comparable. Some investors claim that double-wides are actually a riskier investment because there is more square feet and roof space to be damaged and therefore may require repair in the future. In this author’s option the size makes no difference as long as the criteria above are met.
The bullets above follow the same mindset of investing with the path of least resistance. If you do not mind making repairs yourself or selling a mobile home with small bedrooms then please pick and choose the criteria above as you see fit. The above advice is aimed to make the newbie mobile home investor’s life easy while getting started and learning this business safely.
If I am missing anything please comment your questions and thoughts below.
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