When you are evaluating a mobile home, you must take into consideration the overall condition of that mobile home. There are some repairs that will cost more than some mobile homes will be worth in the end. The factors that impact the value are going to be the location, condition, and type of mobile home park. You could have two mobile home parks sitting right next to each other and the after repair value for the same type of mobile home could be very different. For instance, if you have a mobile home in an area where the mass population is not 55+ you are going to wait longer to sell the mobile home and for half as much as in a family park.You must make sure you thoroughly evaluate each mobile home, so you can ensure you are not missing a major expense. The after repaired value of the mobile home will dictate the level and severity of the repairs that you should do. In fact, I bought a single wide mobile home 2 beds 1 bath 800 square feet for $299.96 from the mobile home park. Since, I paid so little for it, I could go in with a larger budget and do the necessary repairs to the roof and bathroom. The most expensive repairs for all mobile homes are the following:
- Roof replacement
- Siding replacement
- Furnace replacement
- Structural issues
- Underbelly plumbing replacement
- Major mold issues
- Moving mobile home
- Window replacement
The repairs that can push you beyond the value of some mobile homes are the following:
- Complete kitchen remodel
- Complete bathroom remodel
- Carport add on
- Steps & porch add on
- Exterior painting
I have a specific budget that I keep for each of the types of mobile homes I buy, fix, & sell. I have a different budget for single wides than I do double wides. It allows me to ensure that I have enough room in the deal to make sure I can make my required profit. It gives me a guide by which to evaluate each mobile home. I know that if the current condition exceeds my set rehab budget that I need to move on to the next mobile home to preserve my profit. I allow for a bit of cushion in this budget for unexpected expenses.
It is all based on how much I can sell the mobile home for and what condition the mobile home has to be in to sell for that top value in the mobile home park it is located in and who my target buyer is going to be. Essentially, I run my numbers backwards to arrive at what I can afford to pay for the mobile home to make the money I need after repairs are done and holding costs are accounted for and end up meeting my rate of return.
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While the rest of the investing world jumps on the latest Real Estate investing craze, avoid the competition and market mayhem by investing in Mobile Homes.
Investing expert Dawn Erling will show you how easy it is to make money in this lucrative market. She will give you her inside ideas and tricks that have helped make her the mobile home investing expert she is today. Be-aware that this niche isn’t for everyone… so if you are looking for lower investing price points, faster turn-a-round investments, and how to make quick cash then join our free webinar! WholesaleDealmatcher.com is proud to sponsor of this webinar. After registering, you will receive a confirmation email containing information about joining the webinar.