How do you get longterm cashflow in MH's?? - Posted by Jay_Phx

Posted by Jordan (MI) on June 02, 2006 at 07:35:54:


In their course, Tony and Scott say they are able to put them together new, with a smaller doublewide (24x44?, 3bed, 2 bath) for under $50,000.

These are new homes! Now, they are smaller, off brand, and they have worked out a whole sale deal with the dealer because they are buying more then one.

I was looking at a forclosed doublewide in my area which was listed at 44,000! I’m sure the bank would have taken less for it. I’m a noob and I couldn’t find the financing in time before it was gone.

You can figure out how much it’s going to cost by making a few phone calls. You need to find out how much a small lot of land costs. This needs to have enough room for a septic system & well if no city hookups are available. Then call some mobile home dealers, find the decision maker, and try and negotiate a cash price on one of their smaller double wides. After that you need to try and estimate setup costs, moving costs, septic & well, electric hookup, decks, and foundations. You need to investigate foundations in your area because you want to go with a house foundation. You want to be able to retire the title of the home and convince the bank that the home is attached to the real estate. A lawyer should be able to help you with this. Then after a year of seasoning you can get the bank to appraise it and refinance it for more then you put it together for.

So, the ratio of land to home, is that the home is more then the land usually, but not a whole lot more. 70/30?

How I envy you for having the chance to go to Ed’s workshop! Wow. Enjoy that!

Have a great day!


How do you get longterm cashflow in MH’s?? - Posted by Jay_Phx

Posted by Jay_Phx on May 31, 2006 at 18:08:06:

Hello All,
I have read DOW a while ago and recently have dusted it off to “get in the game” since SFR is not cashflowing around here anymore. I want to generate a steady strong cashflow of around 4-5k/month and understand that it can be done with MH’s. But the thing that keeps running through my mind is how do you live off that income? Do you separate a portion for reinvestment?

I’m thinking if that’s the case…I would need to generate about 5k per month in order to have 3-4k to live off. How are you pros doing it? Thanks!


Re: How do you get longterm cashflow in MH’s?? - Posted by Jordan

Posted by Jordan on June 01, 2006 at 06:25:26:


If you think about this for a moment, you’ll realize that long term cash flow can be obtained through renting. In almost all cases this means that you have to own the land that the home is sitting on. When done with a mobile home, this is called a land home package.

Tony and Scott have an excellent course that explains all of the details of getting into land home deals. I highly recommend it. You can buy it off of this site.

Tony and Scott have discovered that with land home deals they are able to cash flow around $200 profit per month. If you had 30 of these properties, you would have $6000 per month. If you re-fi them after seasoning, you’ll get a lump sum cash out of like $20,000! This is the money you use to re-invest.

If you don’t want to have landlord headaches, the other obvious way is mentioned in Lonnies books. (remember???) Rent the dirt!!!

Find a land home package, sell the home, rent the dirt.

That’s how the pros are doing it. It’s not a get rich quick scheme, but it is an excellent wealth builder.

Also, depending on where you are as an investor, you may want to consider getting yourself into a mobile home park.

And if you are serious about this business, you have to be willing to spend some money to learn about it. Go to Tony & Scotts boot camp!


P.S. Where are you from?

Re: How do you get longterm cashflow in MH’s?? - Posted by jay_phx

Posted by jay_phx on June 01, 2006 at 08:36:06:

Thanks for the reply Jordan. I’m from Phoenix and have been investing in SFR for about 4 years. I am not against taking classes or bootcamps either, but am limited to how many I can take due to my J-O-B obligations! So this year I’m attending Ed Garcia’s workshop here in a few weeks.

Actually, I have been looking at MH parks, but don’t know enough to really know what I’m looking at! I also have been hitting the speed bumps recently trying to get a feel for pricing and overall market condition/activity. I have given up getting cashflow out of SFR in this area for a while but need to generate additional cash flow…I’ve been between commercial and MH stuff, but MH seems like I can take $100k and really make a mean stream of cash flow. Commercial on the other hand seems I might need to invest more cash for a smaller stream (at least at my current knowledge level).

How much do land/home packages generally cost? I know that’s area specific, but maybe I can get a general feel for how much the land is in proportion to the homes. I think I’ll look into getting that course you recommended in the meantime.