Why Mobile Homes?
Investing in mobile homes is not something that many people think of. In fact as you may have read in the about me section, I only found out about the cash flow opportunity that mobile homes can provide through a chance barter deal for an old motorcycle.
Many will discount mobile homes as a bad investment because they, just like an automobile, is a depreciating asset. It will not go up in value. When people compare this to a traditional home or multi-family home they tend to walk away.
The opportunity though that most people do not consider is the return on their investment the monthly cash flow generated by rental income. This monthly cash flow is so much larger than from traditional rental properties, that even assuming at the end, the trailer has no value, you still come out ahead.
I think the best way to highlight this is with a spreadsheet. This shows a comparison of $32,000 invested in 6 mobile homes versus $32,000 invested in a single family home. Both amounts include rehab costs and both are realistic in that I have all of these in my current portfolio.
| Mobile Home (6 @ $5,000) | HOUSE (1 @ $32,000) | ||
| Purchase Price (including rehab) |
$32,000.00 | $32,000.00 | |
| Monthly income (gross) |
$4,200.00 | $750.00 | |
| Lot Rent |
$1,650.00 | ||
| taxes |
$30.00 | $65.00 | |
| insurance |
$240.00 | $100.00 | |
| Maintenance |
$450.00 | $100.00 | |
| Monthly Net |
$1,830.00 | $485.00 | |
| Annual Net |
$21,960.00 | $5,820.00 | |
| CAP RATE |
68.63% | 18.19% | |
| 7 yr income |
$153,720.00 | $40,740.00 | |
| Appreciation/Depreciation |
-$32,000.00 | $45,027.00 | |
| TOTAL CASH IN HAND AFTER 7 YEARS |
$121,720.00 | $85,767.00 |
As you can see, this projection looks at a 7 year period. It assumes that the house will increase in value 5% EVERY year. A further assumption is made that at the end of the 7 years the mobile homes will have zero value.
The numbers speak for themselves, if you had $32,000 to invest, would you rather end up with $120k or $85k?
The above statement brings up another great aspect of investing in mobile homes, it says, “If you had $32,000 to invest”, well do you? In today's economy it is harder and harder to find that type of free cash to invest. You can not just buy 1/6th of a house. You can however, buy one trailer now, and another in a few months and another and so on and so forth.
There is obviously a lot more to consider, but the above spreadsheet clearly shows that there IS money to be made in mobile homes and the Trailer Park Riches program will show you how.
As I have mentioned before, what I am presenting to you is not just some pie in the sky theory, it is what I do, day in and day out, it is how I pay my bills.
If you would like to find out more, please sign up for our FREE REPORT and we will send you a more detailed review of the program. You can also keep up with what I am doing by following my blog at BLOG. If you are already sold and are ready to make your Trailer Park Riches, click HERE to purchase the program.
Thank you again for your time and consideration.
