Get ready to jump in with both feet because this has some serious ROI
Thinking about trying a new investing strategy for 2015? Well, mobile home or manufactured homes and their communities might be something you want to consider. We’ve talked to experts who have walked away with 35k in profit after a quick flip.
The great thing about investing in mobile homes is all your skills learned from previous investing will come in handy. Your knowledge of flips, rentals and deal analysis sets you up for some major success.
Here are 7 insights straight from the experts:
- There is a need for mobile homes whether you rent the units or own the park — because this type of investing supports a demographic that is largely unbanked or that has limited income, you will be providing a service to a group of people who need homes.
- This strategy is a mix of ownership and rentals — there are three types of investing opportunities: you can own the units and rent/lease option them, you can own land and rent the slab a unit goes on or you can have land package where the unit becomes a permanent fixture on the land (real property).
- This is a very small industry — this doesn’t mean you won’t be welcomed but there will be competition. There are fewer inventories on the market and you might want to consider finding a mentor or partner to help acclimate to the industry.
- Don’t assume you’ll get mailbox $$$ — there can be pretty significant turnover rates and the demographic you rent to often lives paycheck to paycheck.
- When you own the lot space you don’t have to deal with the care and repair of the mobile home! Kinda a bonus for tired landlords.
- A new resident in the park means a much bigger commitment on their part — they have to purchase a home, agree to rent a lot space and have to be able to have the cash to pay for the unit.
- It makes sense to own more than one community or more than one unit — there is a scale-ability issue. Because this investment strategy is labor intensive it is important to think about stretching your overhead cost. Why pay an accountant, contactor and maintenance guy for one park or set of units when you could feasibly increase your ROI by owning more than one community and double the units?
Want to learn more about mobile home park investing? Join us this month at the ICOR meetings. We’ll be hosting an in-depth panel discussion with industry experts from the Rocky Mountain Home Association.
February Meeting Agenda & Logistics:
6:00-7:00pm: The Investor Lab — Join us for one or all of the following:
Food Served from 6:00-7:00pm
- Workshop Troubleshooting Forum
- "Hot Seat" featuring an expert in deal finding, marketing, financing
- Team & Resource Building
- Haves & Wants and Sharing Success
7:00-8:30pm: Main Meeting — Mobile Home Investing … is it a strategy you should consider? with the Rocky Mountain Home Association
8:30pm: Continued Open Networking
Tuesday, February 10th
Wednesday, February 11th
Thursday, February 12th
Northern Colorado Monthly Meeting - Mobile Home Investing