The mobile home business In Canada is different than in the US for sure due to lower density of parks and the pricing is a bit different but not as much as you would think in context. These little homes are like ATM’s that you can buy at the right price and get them to spit out money for you every month.
Mobile homes are generally overlooked by many investors because they want the single family homes in good areas or multiple streams of income (which I am all for don’t get me wrong) however these properties are a lore more expensive and your creative finance options are a lot more limited.
This all is aside from the fact that the average price for a single family home in Canada can run from 400k-1 million plus in sectors like Toronto and Vancouver. Mobile homes in Calgary and other areas in Alberta could be an excellent way to break into the cash flow or flipping strategies without having a large amount of investment capital to start with.
Don’t forget you can always use Joint Venture Partners for your deals on these homes as well which would reduce your money in — possibly down to $0.00 if you are willing to do all the work. Just think what your cash flow would be if you bought a mobile home for 35,000 and fixed it up for 10K and now you have a 35,000 asset that could rent out for 1500-1800/month?
Things to consider here are the following:
1. Mobile homes are depreciating assets (just like cars) so you can’t count on appreciation like single family fixed home
2. They are mobile! So you can find desperate sellers that need to move the home from it’s current location and get great deals then move it to a new park in a good location to rent it or to a property such as an acerage
3. There are many families and single folks that can’t afford the rent in a downtown apartment or a large single family house – you can still charge lower rent and get high cash flows because your purchase price was so low
4. Forced appreciation through renovations is a lot cheaper in this space because the square feet to renovate is much lower
5. You can do seller financing for the mobile home for the new owner and be like the bank and charger interest and collect a down payment
6. Financing is available for these units but the big banks will not fund them ask us if you need a great mortgage broker.
7. Extremely low competition for deals in this space due to the stigma around trailer parks
8. Comparables can be tougher to find if sales have been low in the park
9. Lots are owned by the part sometimes and sometimes you own the land with the unit – owning the land is preferred because you have less restrictions on what you can and can’t do with the sale/financing
10. These units can be a great way to make a lot of money if you are willing to step outside of the box!
To your success
-Respect the hustle!