Yes, Investing In High Priced Home-Areas Over 100k can be accomplished affordably.
This question is mainly asked by investors getting started in high demand metropolitan type markets.
Although there are high priced mobile homes in these areas there will always be the occasional 3 bedroom or 2 bedroom mobile home deal under $25,000 due to a motivated seller needing to move super-fast. These motivated sellers will not have time to list their homes for sale so network with every park manager you can because these homes sell fast.
Wholesale and Broker the homes over our comfortable purchase prices.
In most cities there is only a small percentage of mobile homes for sale in parks over $100,000. In hot-spot areas such as major metropolitan cities and beach-front vacation destinations the demand on housing from the incoming transients moving into these cities can drive even ugly mobile homes into the $100,000 price range. The buyers here are happy to grossly overpay for location, location, location.
Do not compete with this frenzy.
Travel a short distance outside your major city to nearby towns and/or nearby counties. These suburb areas offer less demand from cash buyers compared to their metropolitan neighbors. Less demand from buyers drastically reduces park rental fees and home prices. Begin investing here.
Love what you do daily,
John Fedro
support@mobilehomeinvesting.net
2 Comments
Niki
November 18, 2013Hi John,
Great website with some real gems of info, thanks!! I currently live in NYC and am having a hard time finding any MH’s unded $20k with lot rents around $850 in Long Island and NJ. Should I look even further out? That will take me to 2+ hours driving time where I might want to turn my sights to a places like Florida where I visit a lot and start our business down there. Is there money to be made in this area that you know of you am I wasting my time? Thoughts?
John Fedro
November 19, 2013Hi Niki,
Thank you for your kind words.
Good question. I have done MH research in NYC and also have discussed investing with the NY MH division. My advice for you comes from my own experience in NYC and the experience I have from helping others in the area.
Concerning NYC you will want to focus your efforts outside the city and into the suburbs and even NJ. Moving outside the over-priced hot-spot that is NYC you will find a lower demand of cash buyers willing to over pay for average mobile homes, this will in turn lower the asking price of many fsbos (for sale by owners) and lower the lot rent in these parks and increase the number of fsbos you find. I too agree that $850 is far to high for lot rent when you are first investing, aim for $500-$600 instead.
You will not always need to travel to these areas as much can be done via phone and the internet however going to appointments and meeting sellers and others is important while beginning and continuing to invest.
Please note that this is only my opinion and only applies to investing in mobile homes with the strategies and forms I use. There may be others that would have you invest in high priced homes in high priced parks with the help of selling the home for even more money for a profit. My method deals with obtaining lower cost MHs and then passing this price on to your tenant-buyers for a long term profit and win-win sale to both seller and buyer and investor.
Additionally I would suggest to close a few deals locally before moving out of state with this niche.
I hope this all makes sense? Let me know if it doesn’t.
All the best,
John Fedro