One of the hottest investing techniques in today's market is flipping mobile homes. With historically low housing inventories and home affordability at crisis level, there is huge demand for manufactured housing right now. But there are several major pitfalls that beginners fall into when dealing with mobiles. In the following video, you'll discover my step by step formula for flipping mobile homes for maximum profits and minimal risks.
4 Key Requirements for Flipping Mobile Homes
1. Title is NOT Retired
You want to make sure to look for deals where the mobile home is not retired. You will take it upon yourself to retire the title and it will open up the home to buyers so you can make money.
2. On its Own Land
Ensure that the mobile home is on its own parcel of real estate. It can be helpful to own the entire mobile home park itself, and is a much better business model for making a larger profit! Check out this free training from Commercial Property Advisors with Peter Harris on Mobile Home Park Investing.
3. Built on or after 1976
A third requirement I recommend is that the mobile home was built on or after 1976. Even if the two previous requirements have been met, this one is especially important because HUD manufactured housing practices were standardized in the year 1976. I would recommend that you do not close on a mobile home deal if it does not fit this requirement.
4. Not destroyed by termites or water
Termites are a big problem down south, such as Florida. Termites thrive in humid environments and can easily eat away at a mobile home, destroying it for good. As seen in the video, I push on the exterior walls to test their strength. This is crucial to do, as these walls hold the entire roof of the mobile home up.
The inferior construction materials in a mobile home make it very susceptible to plumbing and water damage. Perform your due diligence and inspect the house thoroughly.
3 Step Mobile Home Flipping Formula
Step 1: Retire the Title
You will be required to obtain the original title of the mobile home in order to retire the title. If you do not have it, worry not, as you can order a replacement title using the Vin number for the house. I use Mobilehometitles.com as they do the filing and appraisals for me. The rules for each state on retiring the title differ so check with your closing attorney or title company to see what they recommend.
Step 2: Certify the Foundation
Certifying the foundation is a critical component of flipping a mobile home. I suggest that before you close, get that inspection done so you can receive your foundation certification letter.
Step 3: Match the Hatch
When flipping a mobile home, there is a phrase a like to use, "match the hatch". This is juxtaposed with "putting lipstick on the pig", or trying to hide the ugly features on something, especially those belonging to a mobile home. I suggest you EMBRACE the mobile home features. Match the quality of construction of the home structure and neighborhood with your renovations. Do not put lipstick on the pig!
Mobile Home Renovating Formula Resources
These were referenced in the video that apply to mostly to Florida but give you an idea so that you can search for similar resources in your state.
- Example of Company that files mobile home title retirement paperwork for you in Florida: Mobile Home Title Services
- HUD Foundations Guide to Manufactured Homes
- Example of a Florida Mobile Home Foundation Certification Inspector
- Example of a Florida company that provides mobile home foundation certification letters for FHA/VA loans: Martin & Martin