The mobile home market is like a box of chocolates. Just kidding, but, seriously, surprises and deals are waiting around every corner in this industry.
As a mobile home investor, you will probably situate yourself in a specific niche. Yet there are times when it can pay off big time to step outside your comfort zone. You only have to learn to recognize which factors can make or break a sale.
In this episode, we’re looking at some of the recent hidden gems we’ve found at EZ Homes and how you can make the most of them. For a quick summary, read on. And feel free to take a look at the video if you want an in on all the expert tips.
Multiple state tour
When opportunities come knocking, sometimes the possibilities are too good to pass by. So, when Dan Leighton recently got the chance to go on a three-state tour searching for great mobile homes, he didn’t hesitate. Dan had built a relationship with a major corporation that invited him to look at these properties. The journey covered Tennessee, Illinois, and Iowa.
If you’ve been a part of the EZU community for a while, you know that this is quite unusual for Dan Leighton and Dan Paton. However, as in this case, a bit of legwork can pay off. In the end, Dan decided to buy five of the homes that he saw. After thorough inspections, where he found several faults, he was also able to negotiate for a lower price on some of the properties.
Once again, this tour demonstrates that the pathway to success in this industry is to build long-standing relationships and partnerships.
Generally, it will be far more efficient and preferable to focus on local deals. But it can also be beneficial to look beyond your own backyard. One way to do this is to work with an inspector or partner in the relevant area who can inspect and look at the mobile homes for you. However, you could also take an investment road trip and kill several birds with one stone.
All about FEMA homes
During his tour, Dan Leighton invested in a couple of FEMA homes.
FEMA stands for Federal Emergency Management Agency. These FEMA homes are mobile homes that the government deploys during emergencies and in disaster zones as a short term housing solution. Typically, they are not built to the same quality standards as regular models.
However, that’s no reason to overlook these potential gold nuggets. In general, these properties stand out for their:
- Exceptionally low costs
- Slightly shorter length
- The fact that they are highly accessible as most of them are wheelchair friendly.
Parks are often eager to get rid of FEMA homes. This means you can buy them cheaply and quickly sell them to someone looking for a smaller home like a granny flat.
Incredible 40-year-old mobile home deal
Another unusual type of deal to keep your eye out for is older mobile homes. The typical age bracket we look for at EZ Homes is 1990 and up. Homes in this bracket are usually in better condition and better maintained. Yet sometimes an older model that is impossible to pass by catches our eye.
Dan Leighton invested in another unique deal recently in the form of a 1984 double-wide Redman that blew him away. In short, the home was immaculate. Despite its age, it had almost no significant faults except for a patch of moss on the siding that could easily be dealt with. Dan had no idea of its age until he found the data plate. The house was clean and looked almost brand new inside and out.
Like hidden treasures, these homes are rare, but they are out there.
The benefit of well-kept older mobile homes is that, like FEMA homes, parks and owners are often eager to replace them with newer models. Therefore, more likely than not, you can buy them at a low price and sell them at a significant profit. For example, Dan bought the mobile home for $2,000 and is in the process of selling it for $10,500.
However, it all depends on the condition of the property. Possible issues and things to explore in older model mobile homes are:
- Curling of the roof and shingles
- State of the carpet
- State of appliances and systems like HVAC
- Condition of the doors and windows.
Remember that affordable housing never goes out of style.
Focus on your exit strategy
Whenever you are planning on investing in a mobile home, you need to have your exit strategy in mind.
How are you going to sell the home? Who are you going to sell it to?
You need to know whether you will make a profit and how. This is even more important when you are looking at unique deals like the 1984 Redman.
Four of the main exit strategies to keep in mind are:
- Flipping the mobile home on location
- Leasing with the option to purchase
- Advertising it among a network of buyers
- Selling the home back to the park
Choose the right strategy for your situation, and you will make bank.
Seize the moment
Undoubtedly, the theme of the week was that sweet deals are often waiting in unexpected places. To reach the next level in mobile home investment, you sometimes have to think outside the box.
Older homes, FEMA homes, and non-local homes can all make fantastic investments as long as you do your research and avoid making costly mistakes. And don’t forget you can always ask for expert advice.
01:20 Multiple state tour
03:50 All about FEMA homes
09:25 Incredible 40-year-old mobile home deal
18:30 Focus on your exit strategy
20:20 Squeaky clean deals