Repairing a Mobile Home For Investments

Welcome back,

Mobile home cash-flow investor goal: Provide quality homes  at attractive prices  to low-risk buyers  for a substantial return on investment or ROI. 

Let’s break each part down, for the learning purposes of this article.

Provide quality homes…

Whether in need of repairs or recently remodeled a mobile home may be in several conditions and still be of quality. It is important not to judge a mobile homes condition based on your own preferences of where you may want to live, your buyer is the one that must see the true long-term value. It is easy to say new, clean, and beautiful mobile homes are quality. In reality a mobile home that needs a few thousand dollars in repair to then provide a quality home for 20 years is certainly of quality.

…at attractive prices…

The condition of an investment mobile home at the time you resell the home will determine the price and terms you can sell the mobile home. You can not fool a seller for long – nor would you want to – eventually you will lose if you sell to high. So we sell homes for payments based on their condition and repairs needed at the time of the resale. The tenant-buyers must find the price and terms attractive enough to be interested to purchase your mobile home. In reality we are able to provide the American dream of home ownership to many that would otherwise struggle.

…to low-risk buyers…

Make your life as easy as possible only selling to qualified tenant-buyers. Strictly pre-screening tenant-buyers that plan to pay you monthly for the next 5 to 30 years. This is a long relationship so make sure you know who you’re getting in to a seller/buyer relationship with.

…for a substantial ROI.

In order to continue helping sellers and buyers it is vitally important that you be compensated for your time and effort. Question: What is your time worth?

Answer: Substantial profit.

The reason I mention everything above is because it is important to not over-improve a mobile home investment. If you are a non-investor reading these words take this advice if you plan on reselling your home soon. Make the repairs needed that will pay you back upon sale, keep your buyer safe, and sell the home fast for a profit.

Lesson: If it isn’t broke, don’t fix it.

Quick-Flip Case Study 1:

1. Mobile home purchased for $1,000.
2. New shingles on roof – $2,869 unnecessary expense. Talked into by suave contractor.
3. Plumbing repairs – $600 cut costs by hiring experienced handyman for non-permit required repairs
4. Heating system service with 100 gallons kerosene oil – $800 needed in colder states
5. Interior repairs (new carpet in kitchen, paint, new ceiling tiles in bedroom, 1 kitchen light, 2 sets of bedroom closet doors, 1 bathroom faucet, and a few other small misc items)
6. Labor and material – $3,800 expense could have been reduced substantial by hiring an experienced handyman rather than licensed contractors for unskilled jobs
7. Holding costs – $151
8. Sold for $12,000 cash (no monthly payments this time). Profit of negative $300. Good lesson for your next deal to not over improve! Also, as mentioned in the audio to not take the advice of just one contractor aimed to pad his/her pockets on unneeded repairs. Get the advice of repairs needed on your investment manufactured home from an experienced mobile home investor locally or email me personally for help.   

Quick-Flip Case Study 2:

Lesson: Be aware of the notorious “small bedroom”.

1. Mobile home purchased for $1,900 Good price for a sexy double-wide
2. Repair costs total – $1,132
3. Misc material cost – $110
4. Holding costs for 1.5 months total – $668
5. Sale Price $9,500.00 cash. No monthly payments this time either. If you are looking to increase your capital rather than build cash-flow there are specific strategies to do do.
6. Profit of $5,500 Good profit for less than a few hours of effort and 2 months of time. 

Well done to these 2 active manufactured home investors for their determination to help sellers, help buyers, and help themselves to a better life. These types of deals do not come without effort and desire.

Love what you do daily,
John Fedro
support@mobilehomeinvesting.net

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