10 Tips for New Mobile Home Investors From Active Mobile Home Investors

by | BiggerPockets.com

Make no mistake, mobile home investing may cause you just as much grief and as many headaches as traditional real estate investments. Many unprepared investors overpay, over-improve, or undersell their investment mobile homes to high-risk renters or deadbeat buyers. Aim to make your real estate investing business as headache-proof as possible.

Below is a collection of tips from active mobile home investors to newer mobile home investors.

10 Tips for New Mobile Home Investors From Active Mobile Home Investors

1. Keep the area safe.

There is nothing more important than your integrity and the safety and well-being of your renters, buyers, and tenant-buyers.

2. Plan for the worst.

Make sure you understand the worst case scenarios before you start out, so you can avoid them.

mobile-home

3. Know the law.

Make sure you understand the legalities in your state as regards selling homes without a license, doing work on them without a contractor’s license, etc.

Related: 7 Ways to Invest in Mobile Homes With Less Than $25,000

4. Have a plan laid out.

Understand your personal finances and what your goals are with mobile home investing (extra income, leaving the rat race, just having fun and getting experience, etc.).

5. Be ready to get your hands dirty.

This is a down and dirty, intense, “real life” business. Many beginning investors dream of using an army of virtual assistants to do all the work for them, but this is the wrong approach unfortunately. You need to have an attitude that you are going to jump in with both feet, get dirty, scare yourself, and engage in massive daily action and hustle.

6. Be honest with parks about your intentions.

Park managers and owners can be your best friend or worst enemy, so it is important they accurately understand your goals and intentions. This will save you stress later.

7. Make lots of offers.

This will get you the best deals and allow you to negotiate from a position of power. If you find yourself stretching to make a deal work, its because you don’t have enough other homes to make offers on. If your area is too rural to allow for lots of regular offers, branch out into other forms of real estate or other areas so you don’t end up doing bad deals just for the sake of doing a deal.

wholesaling-sellers

8. Take it seriously.

Mobile home investing is a business, just as serious and potentially lucrative as any other business (or more so). You owe it to yourself, your loved ones, and your customers to treat it as such. Engage in professional accounting, understand the laws, and treat your buyers and sellers the way you would want a business to treat you — with the utmost professionalism.

Related: Just Purchase a Mobile Home Inside a Park? Here Are Your Next Steps!

9. Track your progress.

The number of calls you make, offers you make, homes you buy, etc. This intentionality will lead to success, compared with just doing it willy-nilly randomly or reactively.

10. Take others with you toward success.

Some of your best real estate memories will be shared with friends, family, and business partners you are in real estate deals with. Success is a journey.

Bonus

(Fill in the blank!) Please add your own best advice to help others in the comments section below.

In conclusion, if you’ve been investing in real estate for any length of time and have talked to a number of other real estate investors, you begin to see a pattern. Real estate investors are all human beings. As human beings, we make predictable errors when it comes to making judgments about other people. Utilize the help of this website with its articles, videos, and forums to ask questions and gain clarity in your marketplace to help others.

Investors: What would you add to this list?

Leave your comments below!

About Author

John Fedro

John Fedro has been investing in manufactured housing since 2002. John now spends his time continuing to build his cash-flow business in multiple states while helping others enjoy the same freedom he has achieved. Find John here.

9 Comments

  1. tim boehm

    I never recommend mobile homes due to the fact no bank in our area will loan on them after they are 10 years old. They are a depreciating asset and a nightmare to work on. The only value I see in them is for old retired people that find mobile home park living comfortable.

    • David Krulac

      Tim, your thoughts are shared by a great many people, and that helps make the mobile market all the better because so many people think negatively about them. This creates a niche with little competition. The lack of bank financing provides an opening for anybody that can finance mobiles. And the newer ones are better built to better standards. We had a country lot where a mobile owned by somebody else was located. The owner tried to sell the home and couldn’t. Finally he offered to give it to us and we reluctantly accepted. We were looking to sell the lot to somebody looking to build a new stick built home and getting the mobile off our property would expedite that. We attempted to give it away and several people were interested by couldn’t pull if off since it involved moving it. We ended up having it demoed on site. I think it was a 1989 model, but is was well constructed with 2×6 walls, roof trusses, pitched shingle roof and vinyl siding.

      An attorney I knew remodeled some mobiles, replacing the windows and other items and used them as rentals very successfully.

      And of course the Lonnie Scruggs deals are legendary. Mobile homes aren’t for everybody but there is money to be made, and after all what are Tiny Houses but modern, well appointed mobile homes?

    • I own 52 manufactures homes ( mobile home was a term banned by the feds for all structures built after june of 76 I believe) , many of them were given to me by developers for nothing, after refurbing them and renting them I am averaging tenants of 8 years or more….the annual taxes average 200.00 per year with a an average rental of 525 per month…( repairs are almost nothing, th area is immaculate and I have mostly retirees on social security who pay via direct deposit……your kidding right? I never ever needed to finance a manufactured home in my life and I started with nothing….my first one cost me 800.00 was a wreck, 3000 dollars later it has now been rented with almost no breaks for 21 years …..you do the math…..lolololol……..I am quite happy as you can imagine!

  2. Nathan G.

    They are not an appreciating asset but they are inexpensive and can have strong cash flow. It’s a niche market but you can become wealthy by investing in them. I only own one but it paid for itself in less than a year and now cash flows $300 a month. After that experience, I know I could do even better next time. Multiply that by 20 and you are making a good living!

    • Megan Bridgette

      Nathan and SGT Dave,….I am just getting into the niche of MHP. Where did you invest in your MHP? Is it close to you or do you live far away? I live in California and the MHP out here are so expensive and from what I hear have a lot rent control. Is there any advise you can give to us newbies?

  3. roger covin

    I have six vacant lots (3 are 40×80 and 3 are 50×100). I’m thinking about investing in mobile homes instead of flipping the lots….is it better to finance the mobile or buy straight out? I have quite a few strategy questions if anyone is willing to have a convo

  4. Ernestt Salinas

    This is the very business I’d like to get into to make extra $$$$$. However, I’m retired and just looking for something else to do. I’m making it real good, just paid off my House, and able to pay my bills and groceries and then some. Should I stay put ?

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