There is very little competition with mobile home investing. Mobile homes in parks or mobile homes on land offer enormous money-making opportunities. And, mobile homes are often the most affordable housing options for millions or first time home buyers or retirees.
Do yourself a favor. Take a day off to visit a Mobile Home show or a large dealer’s lot. Drive through a mobile home park or two. Visit a nearby mobile home factory. You’ll be amazed. Palm Harbor Homes in Plant City, Florida between Tampa and Orlando has an exhibit that’s open to the public located right along the highway. You can walk from unit to unit and see for yourself the state of the art.
You’ll immediately be surprised by the feeling of spaciousness in today’s deluxe Mobile Home’s 600 square foot living/dining room combinations; family rooms; cathedral ceilings; accommodating kitchens; professionally decorated interiors in muted pastels; and rounded corners in which fully glassed in breakfast rooms can be found. You’ll immediately see the value in comparison to conventional housing.
First of all, Mobile Homes are space-efficient. They’ve got more storage than a conventional house. Quite often, they’re actually bigger. A 70 X 28 foot unit contains 1960 square feet. But that’s not all. Today, Mobile Homes can be TRIPLE WIDE. They’re now being produced in ‘L’ and ‘T’ configurations and can be as big as 3000 square feet.
Generally, you can buy a top of the line home for about $40 per square foot including appliances and carpeting -and possibly window coverings. That compares to as much as $75+ per square foot in conventional housing. That’s why people CHOOSE to live in them. Value. Increased disposable income.
Suppose you were comfortably retired on $50,000 per year (which is far above the average retiree income in the United States today). You live in a $200,000 house, which costs about $3,000 per year for taxes, insurance and maintenance over time. It’s free and clear. If you sold it tax free as your qualifying primary residence then used $75,000 to by a late model used coach and lot in a condo park, you’d get about as much actual living space with a small plot of land and be able to invest the. $125,000 balance.
Condo fees would be about $250 per month – or about half the costs for owning and maintaining your house. And that would probably include lawn maintenance, a satellite dish or cable TV, garbage pick-up and security patrols. If you invested the $125,000 you saved in first mortgages that paid 8%, you’d wind up with about $10,000 per year in extra income with little sacrifice of lifestyle. An extra $200 or so per week in extra retired income would surely add to your enjoyment of retired life. That’s why you might prefer to do this.
Most Mobile Home owners really prefer living in manufactured housing as compared to conventional housing to the extent that they are snobbish about the value they got when they bought their homes, and the extra small lifestyle luxuries their lower cost modern housing can afford them as compared to their friends who live in stick-built houses.
That basic satisfaction with their lot is the basis for profits whether buying and selling, or renting homes or buying and selling or renting Mobile Home Parks. Once you get a closer look at the yields on invested capital, you might become a little snobbish too. Read on to learn ways you can make money with mobile homes as an investor:
MAKING MONEY WITH LITTLE OR NOTHING DOWN
- Buy high leverage purchase Options on homes owned by sellers who need cash.
- Sandwich Lease/Option homes in rental parks for cash flow/gain.
- List and Sell individual or groups of Mobile Homes in parks.
- List and Sell/Exchange – or Option -Mobile Home parks.
- Re-Zone Optioned land for Mobile Homes or Mobile Home parks, and sell/exchange it to pyramid assets.
- Do the above, but co-venture with a developer to build a park.
- Or, stick to individual lots. Option, Lease, Re-zone and sell/rent/exchange.
- Sandwich lease individual park lots for easy cash flow.
- Sandwich lease all park vacancies for more cash flow.
- Take some risk and sandwich lease entire parks for cash flow
- Avoid the risk, and manage parks on a commission basis.
- Lease/Option and fix up older single and double wide units and sell on easy terms with low down payment and high mark ups.
MAKING MONEY WITH SOMETHING DOWN: (cash, paper, property, trades, trash or work)
- Finance Mobile Homes at high rates for cash flow.
- Finance and sell/put the paper into tax free pension plans.
- Syndicate paper, but watch out for SEC violations.
- Use MH paper to buy individual homes or to buy into parks.
- Pre-pay rental on park spaces long term on sandwich leases.
- Open a dealership and put new homes on your controlled lots.
- Deal in Repos, Trade-ins, and Bankrupt dealer inventory.
- Buy and sell on paper.
- Own the land and rent spaces to an owner of multiple units.
- Syndicate or sell MH Parks/Dealerships as a going business.
- Manage your owned portfolio of rental units in a rental park.
- Buy and fix-up double-wide units manufactured after July 15, 1976, put them on individual lots or on lots in a condominium Mobile Home Community on approved HUD foundations and sell them for cash at high mark up; then exchange the cash for more lots.
- Buy and sell new units on existing or developed individual lots.
- Buy lots for long term Mobile Home rental income
- Use personal, corporate, IRA, Roth IRA, or Trust funds to invest in and/or finance any or all of the foregoing.