Investing in mobile homes can be a lucrative business and requires a lot less capital to get started than investing in traditional real estate. It's also more flexible because you can choose to invest in the land a mobile home park sits on, the mobile homes themselves or both. Either way, you can create a solid stream of cash flow that can make you financially independent for life.
How to Invest
Get started by figuring out how much money you have to invest. This will also determine what you can invest in. Of course it will vary from place to place, but on average a double-wide mobile home with land will cost around $40,000 as of 2009. So if you have $10,000 and can get a $30,000 loan from the bank, you are in business. Alternatively, you could purchase two properties for $5,000 each and $70,000 on loan. This will depend on your credit. Loans on mobile homes are usually more expensive than on regular homes, but they are usually amortized over 10 years rather than 30.
Buy a used mobile home, and you can start with a lot less money. This is the way to go for new investors or those working with a very small budget. Obviously this takes more time, as you must do more research to find the homes. However, you can often find single-wide homes for $2,000 to $3,000, and they can often sell for twice that. These homes tend to be 10 to 20 years old, and usually don't include land. In addition to the Resources below, Craigslist.org and Ebay.com are good places to look for used mobile homes.
Buy a mobile home park. This obviously requires a lot more cash to get started, but one park can set you up for life. The larger ones have 50 to 100 spaces available, which will rent from anywhere between $150 to $250 per month for the land. All you need to do is provide the gas, electricity and water, and employ someone who will come around and pick up the rent checks every month. Depending on the size of the park, you can expect to pay anywhere between $500,000 to $750,000. You could put up $50,000 to $100,000 of your own money, with the bank financing the rest. One of the big advantages of owning the land rather than the home is that there is little to no maintenance involved. All you have to do is provide utilities--the rest of it is just dirt.
Get started as soon as you have the money. It's important to start investing as early in your career as possible if you wish to become financially independent. One of the advantages of investing in mobile homes rather than traditional housing is that you can get started with a lot less money. There is also a lot less competition and the maintenance required on a mobile home tends to be less and cheaper than for a regular home. It is one of the best real estate investment opportunities there is.
Things You'll Need
$5,000 to $30,000 in cash