DG Family...

You can pick up mobile homes for a great price. Problem is, you have to rent the land they are on. In most cases, the amount of monthly space rental far exceeds the mortgage on the home. I've seen really nice mobile homes for under $100K with monthly mortgage payments of somewhere around $400 - $500. But the space rental is around $700 - $800 a month. Something to keep in mind if you are thinking of adding them to your portfolio. Also, if the goal is to buy and rent, you need to check with each park to find out what their rules are regarding renting out the homes; some will only allow owner occupied.

Cindy is correct as to the issues relating to the lot fees. Can become very expensive. I have had success with buying, fixing, renting while trying to find a buyer. The end result is a wash becuase of the lot rents that had to be paid while vacant and under rehab.

A better solution would be to find a park or evan a parcel of land with the possibility of adding another unit or even just the land for someone else to pay you the lot fees. Check out www.wobblybox.com

Regards,

Fanbot

I know derling and nstreet (two of the coaches) have a lot of experience and advice about mobile homes. Try searching some of their posts on the site about the subject. Pretty good stuff.

Rina

Thanks guys, and I will check out that site also.

I have been investing in mobile homes in parks for many years now. I have owned a mobile home park too, so I understand both sides of the business. I invest in mobile homes in area that make sense, thus if the case that was introduced above occurs....I don't buy there!!! There are a variety of different purchase options too. You could go after the newer ones, but why do that when you can buy an older mobile home for cash.

I buy older mobile homes on a regular basis since I have less competition from owner occupants since there are virtual no financing options for these. I will either pay cash ($1-$6,000) use a business line od credit, or convince the seller to do seller financing with me.

I always look to double or triple my money on the resale. If I do not see that happening on that home in that location, I move onto the next deal.

Like mentioned before, the lot rent can be ridiculous, but you do not have to buy in those parks. I have bought in a park where the lot rent included utilities, etc....thus the rent averaged between $500 -$650 a month. What I did is I made sure that I bought the mobile home for such a steep discount that I could adjust my payment to allow the new buyer to afford the lot rent and my payment each month.

I did test marketing to find buyers who might be interested. I put out a few different scenarios and found which ads had the most response. I also qualified the buyers and called on other mobile homes in the park that were for sale.

If I am going to adjust my monthly payment recieved per month, I am going to require a larger down payment. I have my best success getting a large down payment around tax refund time, so I buy mobile homes in bulk during the slow time and ramp up my resale efforts around tax time.

In most cases, I get my total investment back when they buy or the lastest of 12 mos from the purchase date.

Not all areas are created equally and not all parks are the best ones to be doing this part of the business in. I enjoy the business and have made quite a bit of money overtime buying mobile homes that most people would not consider, fixing them up, and selling them with seller financing or selling them outright.