manufactured homes? - Posted by Matthew G

Posted by rw on March 05, 2001 at 14:25:36:


Wow! That sure is a lot of questions. I’ll answer a few of them for you and then I think you should go check out some of the articles on this web site. Perhaps go to the Creonline product list and pick out a couple of starter books or tapes on real estate.

On the manufactured home issue. Here’s the scoop. First of all what is your goal? Do you need cash flow? Do you just want to flip one?

It always helps to know what the student is trying to accomplish and how much knowledge you have. This way I can give you better guidance, instead of just some shotgun approach with general information.

Here’s a quick tip. There are 3 types of property you can buy. Low income, Middle Income, and Upper Income. doesn’t matter whether it’s manufactured, apartments, mobiles, or multi-units,they are going to be either in a low, middle or upper income area. Define that first.

With the lower income and cosmetically distressed, you can genereally buy cheaper, rents are genereally not significantly lower, so you have a better chance at getting positive cash flow. However, these are also genereally a bit more management intense. Upside, more cash. With the nicer properties, in good shape, ususally you will have a higher price,similar rents,thus a lower to no cash flow. However, these will ususally appreciate in value better.

The problem is,that when you are starting out,you usually ‘need’ the cash flow. Remember with those your goal is not appreciation, It’s cash. Once you have some bucks, then you can move up into the nicer stuff, as you can genereally put more equity in,and or leverage better prices with the use of cash and credit.

So, depending on your wants, desires and education,there is a starting place for everyone.

Manufactured homes also fit the profile. Is it a low income manufactured, nice area, ??

Here’s the drill. Take the rents, deduct all the expenses (tax, insurance, water, sewer, vacancy ratio and mortgage payment). Is there any positive cash flow?

My formula requires a 30% return on the cash (borrowd or not Ie: take the down payemtn, divide it into the net. I would look for at least 30%,including any pro-rated rents.), or I would not make the deal,as a beginner.

Hope I’ve shed some positive light.

Russ Whitney

manufactured homes? - Posted by Matthew G

Posted by Matthew G on March 05, 2001 at 13:24:08:

Hi y’all, I am new to the whole REI thing, and I was wondering, (yes, I know, I could check the archive, but oh well) are manufactured homes good investment properties? I ask because in my area there seems to be a million of them for sale, lots at REALLY GOOD prices, Any info on this would be helpful, also I was wondering, Mr. Whitney, do you ever plan on being in this area (Salem, Oregon) I want so badly to jump in but I am just a little shaky on the financing part of the equation, as I have made more than my share of mistakes, ie… car repo, collections, and not so much lately but in the last several years I have lots of late pays on my credit record. anyone have advice for me as to what to do with this. Also I do not make a whole lot of money on my job. Lastly, I have some family members who want to help but have nothing to contribute (credit, money, one of them has oh say about 35K equity in their home, but I don’t want to ask them to put that at risk. Well I appologize for asking so many questions, as said earlier in the post, I really want to get into this, but I don’t know where to start.

Thanks in advance for the help
Matthew G (Salem, OR)
Owner of the Carleton Sheets program

ALSO - Try this link . . . . . . - Posted by Terry Vaughan

Posted by Terry Vaughan on March 06, 2001 at 02:32:19:


You will find a LOT of information on Mobile Home investing here :

AND Once a year (October) Lonnie, I and Ray Alcorn do a special 3-day workshop just on Mobile Home Investing.

Maybe we will see you there?

Re: manufactured homes? - Posted by Jackson Ordean

Posted by Jackson Ordean on March 05, 2001 at 21:06:30:

Holy smokes, dude! did ya’ read it?