I’m new to the real estate game but interested in purchasing individual mobile homes that are already at a park and then renting them out. Is this a possible solution for the new investor that only wants to pay cash and does not have enough capital to invest in a complete park?
Do a search, spend a day reading back posts. Plenty of info on this. Better yet, get their home study course.
Yes, it’s possible but your obstacle will be the park owners and managers allowing you to do this so check with them before you buy. Search Google for John Fedro and look at his education materials on this. You’ll learn quite a bit from him and most of what he produces is free.
Yes. It’s possible. My thoughts are that it’s more work per capital dollar invested, more volative returns (reductions in months/years with higher expenses), and likely higher overall returns. More risk, more work, little higher return on investment. Other than finding a park owner you can work well with as Bruce mentioned, the keys are getting homes in reasonable shape and having a good maintenance/rehab staff or contractors.
thanks all. I appreciate the feedback.
I’ve been a real estate investor for decades. I would never even remotely consider doing this personally. Better off finding a well built duplex or triplex and leveraging your money.
@crowe , as per your question:
- “Is this (purchasing individual mobile homes that are already at a park and then renting them out) a possible solution for the new investor that only wants to pay cash and does not have enough capital to invest in a complete park?”
The answer is:
- Yes, this is a possible solution and there are people who do it.
Would I do it?:
- No, I personally would not do it.
However, I totally understand that you have to start somewhere and not everyone is able to start big.
I would suggest the following:
- Land / Home Package.
Take your money and buy a newer, 3 Bedroom / 2 Bath Singlewide Mobile Home on its own land physically near you.
Once you make your purchase run this one Mobile Home like a business. If they do not pay by “X” Day, you start the Eviction Process.
You do everything as if it was a big Mobile Home Park.
Once that Mobile Home is showing a profit then move onto the next Land/Home Package in the same general area.
You can also sell the Mobile Homes but keep the land as “Lot Rent”.
Once you get enough under your belt consider selling them and using that money to buy a Mobile Home Park.
We wish you the very best!
Thanks for the additional advice everyone. I appreciate it.