Flipping houses has been a popular way to make money in property for many years. With so many popular renovation shows on the television, it is easy to see why.
For many people, flipping houses is desirable, and it is something that many people strive to do. But, gathering the money to invest in flipping houses is often very difficult, and this is what often makes this hobby unachievable for most people.
But, if you are struggling to gather the funds to invest in flipping houses, you do have one other option. That is to flip mobile homes, instead of regular houses.
This is definitely an alternative form of investment, but it is a great stepping stone for those who eventually want to invest in traditional property.
However, knowing where to start is often difficult. Especially if you have never flipped any sort of home before. In this guide, we’ll be taking a look at how to flip mobile homes, and lots more.
What is Flipping?
On the chance that you aren’t familiar with the term ‘flipping’, let’s take a look at what this is. Particularly in relation to mobile homes. ‘Flipping’ is a term that is used in the USA in relation to property investment and making profit.
When you flip a home, you typically purchase a house at a low cost, spend a set budget on renovating that house, and then sell it on at a profit. It is one of the most popular forms of property investment. Especially for those who are new to property investing.
For those who do not have the capital to invest in traditional houses, flipping mobile homes is a good starting point. This style of investing allows you to enter the world of property investment, without having to put so much money into it.
From the revenue you then generate after flipping mobile homes, you can then enter traditional property investment at a later date.
So, in short, flipping houses refers to the process of buying a low-cost home, investing cash into refurbishment, and then selling it on at a higher cost. When you flip a mobile home, you do the same thing, just with mobile homes instead of traditional homes.
How Do You Flip A Mobile Home?
If you don’t know where to begin with flipping a mobile home, then you will be glad to hear that this process is actually fairly simple.
In fact, it can be split up into just a handful of easy steps. So, let’s take a quick look at what these steps are.
Step 1 – Set Your Budget
When it comes to any sort of investment, you have to begin the process by setting your budget. If you have considered investing, then you probably have a rough idea of the amount that you want to spend on this process.
But, there are a lot of things to consider in your budget that you probably hadn’t realized you have to think about.
A lot of the time, first-time investors only think about the amount that they want to spend on the property they are investing in.
But, there is a lot more to think about than just the cost of the mobile home. As well as setting a budget for the amount that you want to spend on the mobile home, you also need to think about the amount you want to spend on refurbishment.
These figures should be calculated with the amount of profit that you want to make.
Step 2 – Do Your Research
If you are new to flipping homes, then it is very important that you do your research. The research that you do will likely have an influence on your budget, which is why this is so crucial. In particular, there are 2 things that you need to think about.
They are the cost of mobile homes, and the cost of refurbishments.
To begin researching the costs of mobile homes, you need to begin by taking a look at the cost of mobile homes in your area. Even though mobile homes are, well, mobile, their value differs depending on the area that you are in.
So, the best place to start is by looking at the cost of mobile homes in your area. Once you have got an idea of the average cost of this, you can then move on to looking at the cost of high-spec and low-spec mobile homes.
If you want to flip mobile homes, then you will be targeting low-spec and poor-quality mobile homes. So, if you look at the average cost of these in your area, it will help you tighten up your budget.
Once you have looked at the cost of mobile homes, you should then do some research into refurbishment costs. If you are new to this, then it is likely that you will want to get some professionals in to do the work.
So, take a look at the different jobs you might need doing in your potential mobile home, then get some quotes for these jobs. This allows you to tighten up your refurbishment budget.
Step 3 – Start Looking
With your budget set, you are then ready to begin looking at potential mobile homes to purchase. While you should be looking for homes that will need improvements if you want to make money, it is important that you avoid mobile homes with structural issues.
Mobile homes with structural issues tend to sell at lower prices, and this can make them attractive, but the cost of repairing structural issues simply isn’t worth it.
So, start taking a look at mobile homes that are up for sale near you. Book some viewings if possible, and have a look around to broaden your knowledge about this style of housing.
After you have viewed a couple of mobile homes, you will get a better idea of the amount you should be spending on your project.
Step 4 – Get to Work
Once you have found the perfect mobile home for your project, you should get to work! Try to purchase it for as low a cost as possible, but the most critical thing is that you stick to your budget. With your mobile home purchased, you can then speak to professionals and start to get the work done.
After you have booked tradesmen in to do the work, you will get a better idea of the amount of time it will take to do the work. This will allow you to set yourself a time schedule, meaning you will have a good idea of the time you will have to wait before you can make a profit.
Is it a Good Idea to Flip Mobile Homes?
As you can see, flipping mobile homes isn’t actually that difficult. As is often the case, the first mobile home that you flip will usually take the longest period of time, and it will likely be the most stressful.
But, once you get past this initial project, the process will become easier and faster. So, overall, we would say that it is a good idea.
Flipping mobile homes is nowhere near as lucrative as flipping traditional homes, and, as you would expect, the profit that you can make on these styles of home is a lot smaller.
But, as a starting point, flipping mobile homes is excellent. In the long run, it likely isn’t the best way to invest your money. But, this style of flipping can allow you to generate the capital necessary to invest in traditional homes.
So, as long as you go into this project knowing that the revenue you will make flipping this style of home is incomparable to what you will make flipping traditional homes, then yes, it is a good idea.
Is Flipping Mobile Homes Worth It?
Finally, let’s take a look at whether, or not, flipping mobile homes is worth it. ‘Worth’ and ‘Value’ are terms which are often subjective.
But, when it comes to flipping mobile homes, you likely want to know how much money you can make off flipping these styles of home, and whether, or not, the profit that you can generate is worth it.
A lot of the time, we would say that, yes, flipping mobile homes is worth it. But, if you want to ensure this, there are some things that you can do.
The main thing that you can do to ensure that flipping mobile homes is worth it is to look for the perfect mobile home to refurb. The perfect mobile home will be priced low, but it will only require minimal refurbishment work to increase its value.
So, you will spend a low amount on purchasing the mobile home, and a low amount on renovating it, allowing you a large profit margin.
So, yes, we would say that flipping mobiles homes is definitely worth it. Especially if you are looking to move into traditional property investment in the future.
But, if you want to ensure that this process is worth it for you, check out the guide above to find out how to flip mobile homes successfully.