Is Moving Mobile Homes The Best Way To Invest?
Hi,
I don't know much about MH investing, but I know the basics about investing in general. I was very interested in mobile homes because the returns are much better, they are cheap and I don't have to wait to save for a huge DP on a house, and I can move them. So here's the little scenario question: I was looking in the paper and saw a 55x12 towable mobile home for $2000 that needs "minor repairs". So lets say I check the home out and figure I'd need to spend about $3000 to hire someone to finish repairing it. During all this, I do research and find a MHP where a comp was selling for about $45k, so I spend another $2000 for transportation to that MH Park where I found the comp (or one very close to it), then maybe another $2000 to set it on concrete and add a path and landscaping. I then put it on the market for $45k-7k(exp.)=$38k profits. Could something like this be done and is it the best way to invest in mobile homes?
Thanks for helping,
Igor
Have you actually found a comp for 45K? If so, I can buy 12x55's in OH all day long and drive them to CA myself. You wouldn't get more than 10-12K here even in excellent condition! I've got a semi and the time.
Let me know.
Ronnie
No, I just made up all these prices. But since you asked, I looked into it a little and found a '98 1bdrm/1bath 608 sq. ft. (about a 12x55?) MH for $97,500 in Encinitas. But that's only comparing the sizes, so I don't think its a good comp. BTW, the lowest price for ANY MH in the San Diego area is about $20k. Overall though, the prices here in California are high because the land is so expensive. Someone could surely make good profits moving MHs from other states.
But I still want to know more about the expenses I mentioned at the top of the page. How much would you charge to move it per mile, for example?
I charge $1.30 per mile. Since the truck would come back empty, I would have to charge double. Roughly $5200. Less if I could find a backhaul.
However, my trucks run locally nowadays. I haven't been to CA for 2 yrs now.
My advice, if you want to move trailers, is to look in AZ and NV. They're all over the place there and probably at a reasonable price.
Or you can look on Ebay.
Anyway, I hope someone closer to your area can help more. If they treat mobiles like real property out there, I don't see any reasonwhy you couldn't make money with them. Actually, you can always make money with them. The paydays just aren't as large.
Happy Hunting.
Ronnie
So if I wanted to move a mobile home 100 miles to a destination ($1.30 x 100), then 100 miles coming back empty($1.30 x 100 again), it would cost $260? I think when you said $5200 you meant from OH to CA, right?
What about the price of getting the MH on and off the flatbed trailer?
Igor