Investing in mobile homes to flip has become very popular in the housing market lately as more people are considering the opportunity.
It is important to note that if considering flipping mobile homes you must know the distinction between flipping mobile homes and flipping regular homes.
Mobile homes can be just as risky as an investment as a regular home because some mobile homes can have severe interior and exterior damages.
The damages become so bad they are beyond repair.
If a mobile home comes with too many structural damages it isn’t worth investing in.
More damage means you have to get a house or mobile home at a huge discount. Much bigger just to make sure you are covered with such extensive damage.
The good thing about flipping mobile homes is the market is plentiful.
There are more people considering moving into mobile homes now. Many people look to downsize and to travel from time to time, convenience matters to people.
There are some people who may be skeptical to buy a mobile home as well. This presents a great opportunity to get into the flipping mobile home business.
Flipping mobile homes you just need to get up to speed on the common repairs needed for a mobile home.
Just set aside time to create your immediate short-term goals and long term goals, for ultimate results. Moreover, if you can flip a regular home with no problem you’d do great flipping mobile homes.
Create A Plan
It is always important to have a plan especially if you are considering flipping mobile homes.
You need to have:
- Know the locations to flip mobile homes
- Understand who buys a mobile home and what they are looking for
- Where will you get the money to buy and rehab the mobile home
- How will you sell the home
The very first thing to map out in your plan is to have a set budget. Hash out a plausible budget and stick to it. When you start to go outside your budget it can cause a lot of unneeded stress and that is never good for anyone.
When it comes to having a plan. This means you have researched the locations you are interested in investing in. You have set aside time to view some of the mobile homes on the market in the area you want to flip.
You should research all of the latest material used in mobile homes today and what fixtures attract buyers.
You need to have sought out opinions of mobile home owners and renters on why choosing to live in a mobile home has many benefits that differ from a regular home.
And, you have already made an overall plan to attract your buyers after renovations.
If you are looking at flipping a mobile home then you probably already have financing.
If you do not have financing lined up I would get that done before looking at mobile homes to buy. You can use hard money lenders or private money.
A plan is important; it eases your work process as you start making investments to flip mobile homes.
A plan provides a set of goals that you work hard to achieve. When a plan succeeds exactly how you imagined the outcome from your hard work and efforts is far greater than you can imagine.
Connecting with mobile homeowners on their experience living in a mobile home is only one step in making your connections.
You should also build a rapport with them if they one day decide they want to sell their mobile home.
When researching your potential mobile home locations you should also get well acquainted with park managers.
Most mobile home areas have park managers that manage the park of the mobile homes.
Establishing a relationship with the park managers enables you to have firsthand access to the buying market when mobile homes become available.
You can have the park manager contact you immediately when a mobile home becomes available for sale.
The park manager will let you know who are the homeowners and who are the renters.
The managers can give you a general estimate of how much mobile homeowners charge for rent.
They can also tell you where all of the mobile homes in the area are located, just in case the internet missed any information.
It is also important to get to know the communities you plan to make your investments in.
If you get to know the community and the surrounding amenities it will leave an impression on potential buyers to the point they will consider buying.
It is also great to get well acquainted with your potential buyers too. When you correspond with them make them feel like they are talking to a friend.
This way they begin to trust you and may feel more comfortable buying from you than anyone else.
Marketing to buy and sell
Everyone does not know you are in the market of buying and flipping mobile homes.
Yeah, you may tell people like your family and friends or the sales clerk at your local grocery store but other than that no one really has a clue about what your plans are for the business.
Besides making those much need important connections you must advertise your business daily.
This means you should use social media to your advantage. Create cool social media posts that let the social media community know you are looking to buy mobile homes.
Create flyers and signs that you can post around your neighborhood and the neighborhoods you are interested in.
Please do everything by the book. Follow the zoning codes or a zoning inspector will go out and take your signs down.
You don’t want that to take place. You might want to meet with the zoning department before you go around posting signs.
When I post signs I did not meet with zoning I just put the sign up knowing someone would tear it down.
You can take a ladder in your car and put the signs high up on telephone poles so it is harder for people to tear them down.
I know this may sound absolutely crazy to do but use college students to post your signs or hand outdoor flyers in the neighborhoods.
You just tell them you will drive around the area when they are done to make sure they were delivered.
Another effective way of advertising your business is by making business cards. There are many businesses that welcome you to set aside your business cards for their customers to grab as they leave and enter. Hand your business card to everyone.
When you want to capitalize on your investment aim low and think high.
The model is to seek out the mobile homes that are priced low, purchase them, renovate, and then sell for a higher price. This is why you want to flip homes to make great money.
Hopefully, you optimize on a really great net gain. But, before you purchase your mobile home make sure you hire an inspector to thoroughly assess the mobile homes before you make any updates or renovations.
It is important to hire an inspector so they can locate any hidden repairs that the mobile home may need.
If the inspector finds any structural damages than it is a possibility your renovations may cost you more than what you had estimated.
Most of the time the issues are plumbing and electrical, but that still will costs you thousands of dollars depending on how severe the damage.
The good thing about hiring an inspector is at least you are aware of what you are getting yourself into. Ultimately, the decision is yours.
Once you have all of the information you need to get started on renovations, start researching the latest materials that attract buyers to mobile homes like wood floors, carpet, plastic, steel, rich colors, earth tone, monotones, etc. Then start making the necessary renovations.
Once you are complete with updates and repairs it is time to capitalize on your investment.
So remember the connections you gained and the advertisements you made? Mobile homeowners? Renters? Park Managers? Creative flyers, signs, and social media posts?
All of that work wasn’t done for anything it is now time to market your hard work and start getting potential buyers to purchase your mobile home so you can flip it for a profit.
It is now time to capitalize.
When rehabbing a mobile home you just have to do what you would with a normal home flip. You might be asking what is that. You have to have a really accurate estimate of the cost to renovate the mobile home.
What might you need to renovate:
- Kitchen the whole thing or most of it
- Bathroom it just depends on how bad if it’s a gut job or not
- Roof make sure not leaking
- Plumbing is it working
- Electrical how is that looking
- Outside walls
- Inside wall repair
- Carpet or tile needed for floors
- How are interior and exterior doors
- The windows cracked or broken
- Any water damage or wood rot
- No basement problems usually with mobile homes since they do not have basements
- Paint interior and exterior
- Any landscaping in the mobile home park that needs to be done on that lot
- Furnace and AC repairs or replacement
You can see the list looks pretty similar to rehabbing a regular home or house. A mobile home can be smaller so the rehab cost could be lower.
You really want to make sure when you buy a mobile home to rehab that you do not overpay and do too much rehab. The resell f these is low so your margins are tight.
Flipping mobile homes can be a huge risk because mobile homes can lose their value rather quickly. So, it is important to stay up to code with trends and really start making those connections to get your business up and running.
I don’t want to deter you from flipping mobile homes I just want you to be cognizant of all the outcomes when making the decision to invest in mobile homes.
It can be a lucrative business, with time, patience, and hard work you are bound to get the results you are looking for.
Worst case you can rent the mobile home if for some reason you can’t sell it.
Not every experience is the same, but with a supportive team behind you, you can start capitalizing on your investments in no time.
Just remember to always have a set plan and a list of goals you would like to achieve when you start your business of flipping mobile homes.
Never go into anything without a plan and always build your connections with the right people! Park Managers are very beneficial to you so start getting acquainted with them immediately.
Park Managers and Homeowners are the best at giving you all the information you need when a mobile home becomes available for sale.
Always aim low and sell high, and, most importantly if you are looking to get business coming in as quickly as possible to advertise your business daily! Potential buyers will start rolling in and you can start capitalizing.
Check out our course on house flipping to learn more.