I have been asked to start a new thread on my experience with mobile home investing. This is in response to this thread:
http://www.thefastlanetomillions.com/introductions-networking/25557-beating-rat-race.html#post126861
I was stuck on my REI stuff and wanted to be doing rather than sitting. I came across the Lonnie Deals stuff and read it. DHappy on this forum also inspired me.
As far as Lonnie Deal stuff goes, reading is always easier than doing. This is a strategy to build cashflow. It is labor intensive and you have to spend a lot of time networking.
I began by using his strategy and trying to smooze and play hard ball with desperate homeowners. It is a good strategy but I have been beat to the punch more often than not. You have to develop relationships to the people that deal with massive numbers of MH's, mobile home park managers. They know everything that is going to happen in their parks.
I found 5 MHP's about 10 miles from my house. They are all side by side and managed by the same people. About the same time I saw a free MH offered on Craigslist. The managers agreed to take this one in and so I had it moved within 24 hours. The MH owner was amazed at how fast I had it out of his way. The move cost $1000. So my "free" MH cost me $1000 up front. I will probably not move another one. I'll have to tell you about the 3 months it took to get electricity(stupid pole).
As it turns out, my MH is in between 2 vacant MH's. One is owned by the park. It needs some work but is already leveled, tied down and hooked to utilities. They offered it to me free if I would clean it up. I can rent it, sell it, or occupy it as long as it stays there for 5 years. So now I have 2 MH's in a matter of weeks.
Over the 5 MHP's they have several of these. I have expressed an interest in any deals they have below $5000. I also put my biz cards in the windows of my MH's. And I visit every neighbor and tell them to contact me if someone is moving out or wanting to move in. The MHP manager is also helping me to fill/sell my MH's.
If you are going to clean up, rehab, or do any major construction on these cans you better keep a lid on costs. Your expenses can definitely rack up.
A typical deal I am looking at for a rental would be $5000 in total cost. I would net $250 a month/ $3000 a year. 60% cash on cash return. I could also sell them for rent to own. I haven't done these, but I would try to get as much cash down as possible and get payments on the balance.
I did mention floor problems in the other thread. Another big problem I see is the MH's made in the 80's/90's with the masonite siding. This stuff soaks up moisture and then falls apart. These MH's will usually have huge holes in their sides. Major work to replace all siding.
One other thing, beware of aluminum wiring on older MH's.
This can be an ongoing learning thread. Others are welcome to post their lessons/experiences.
Happy hunting.
http://www.thefastlanetomillions.com/introductions-networking/25557-beating-rat-race.html#post126861
I was stuck on my REI stuff and wanted to be doing rather than sitting. I came across the Lonnie Deals stuff and read it. DHappy on this forum also inspired me.
As far as Lonnie Deal stuff goes, reading is always easier than doing. This is a strategy to build cashflow. It is labor intensive and you have to spend a lot of time networking.
I began by using his strategy and trying to smooze and play hard ball with desperate homeowners. It is a good strategy but I have been beat to the punch more often than not. You have to develop relationships to the people that deal with massive numbers of MH's, mobile home park managers. They know everything that is going to happen in their parks.
I found 5 MHP's about 10 miles from my house. They are all side by side and managed by the same people. About the same time I saw a free MH offered on Craigslist. The managers agreed to take this one in and so I had it moved within 24 hours. The MH owner was amazed at how fast I had it out of his way. The move cost $1000. So my "free" MH cost me $1000 up front. I will probably not move another one. I'll have to tell you about the 3 months it took to get electricity(stupid pole).
As it turns out, my MH is in between 2 vacant MH's. One is owned by the park. It needs some work but is already leveled, tied down and hooked to utilities. They offered it to me free if I would clean it up. I can rent it, sell it, or occupy it as long as it stays there for 5 years. So now I have 2 MH's in a matter of weeks.
Over the 5 MHP's they have several of these. I have expressed an interest in any deals they have below $5000. I also put my biz cards in the windows of my MH's. And I visit every neighbor and tell them to contact me if someone is moving out or wanting to move in. The MHP manager is also helping me to fill/sell my MH's.
If you are going to clean up, rehab, or do any major construction on these cans you better keep a lid on costs. Your expenses can definitely rack up.
A typical deal I am looking at for a rental would be $5000 in total cost. I would net $250 a month/ $3000 a year. 60% cash on cash return. I could also sell them for rent to own. I haven't done these, but I would try to get as much cash down as possible and get payments on the balance.
I did mention floor problems in the other thread. Another big problem I see is the MH's made in the 80's/90's with the masonite siding. This stuff soaks up moisture and then falls apart. These MH's will usually have huge holes in their sides. Major work to replace all siding.
One other thing, beware of aluminum wiring on older MH's.
This can be an ongoing learning thread. Others are welcome to post their lessons/experiences.
Happy hunting.
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