Episode•March 14, 2024•16 min

Exploring Mobile Home Investing with Rachel Hernandez | Ep. 309

In this episode of Money Talk with Tiff, host Tiffany Grant delves into mobile home investing with special guest Rachel Hernandez. Rachel shares her journey from single-family home investing to venturing into the often-overlooked niche of mobile home investing. She offers insights into what mobile homes are, how she got started in the industry, and the process of buying, selling, and renting out mobile homes. She also discusses the importance of providing affordable housing and offers valuable advice for those interested in entering this real estate market. Plus, Rachel includes information on where listeners can find more resources and training on mobile home investing. Join Tiffany and Rachel in this eye-opening discussion about mobile home investing and the opportunities it presents in the real estate industry. Check out the full show notes: https://moneytalkwitht.com/podcast-show-notes/mobile-home-investing/ About Our Guest Rachel Hernandez is an award-winning mobile home investor with over ten years of experience. As an author and blogger, her books have hit #1 on Amazon, and her blog has been featured as one of the |Top 20 Real Estate Investing Blogs." She is also the #1 Writer for Mobile Homes on Quora. She has been featured in MHVillage, Forbes, Experian, and various real estate publications and blogs. Her podcast, Adventures in Mobile Homes, is recognized as one of 30 Asian American Podcasts to support and was nominated by the Asian American Podcasters Association for a 2020 Golden Crane Award. Connect with Rachel Website: https://adventuresinmobilehomes.com Twitter (X): @mobilehomegurl Instagram: @mobilehomegurl Facebook: Adventures in Mobile Homes Connect with Tiffany Website: https://www.moneytalkwitht.com Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant YouTube: Money Talk With Tiff Pinterest: @moneytalkwitht TikTok: @moneytalkwitht Timestamps [00:00] Transitioned from single-family to mobile home investing. [04:04] Real estate investments led to challenges, solutions. [08:38] Mobile homes often overlooked as real estate investment. [10:52] Locate mobile home parks locally, invest wisely. [14:12] Curious about mobile home investing, ownership, land. Key Themes Mobile Homes: Affordable Housing Solutions Real Estate Investing: Transition and Strategy Cash Flow: Maximized Income Potential Niche Markets: Finding Investment Opportunities Property...

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Key Takeaways

1
Mobile homes can be purchased for cash with lower entry costs and deliver higher cash flow since there is no mortgage payment
Rachel bought her first mobile home for $3,600 cash and sold it owner-financed for $10,000 with $1,000 down and $250/month
Unlike single-family rentals, income does not first go to mortgage, insurance, or HOA fees
Less capital is required compared to traditional real estate, reducing overall risk for new investors
2
Mobile home investing is a niche overlooked by most real estate investors, creating less competition
Negative stigma portrayed in media keeps many investors away
Communities range from low-end to high-end; understanding the niche reveals profitable opportunities
Rachel built a successful local business by focusing on corporate-owned and higher-end parks
3
Success requires building relationships with park managers and owners before doing deals
Investors must get permission to work inside each community
Rachel started by distributing flyers inside approved parks and networking with park staff
Choosing parks that match your personality and target clientele improves long-term results
4
Manufactured housing remains one of the last truly affordable housing options in the U.S.
Many residents come from multi-generational families already familiar with mobile homes
Monthly payments of a few hundred dollars plus lot rent provide attainable homeownership
Rachel emphasizes the social impact of supplying quality, affordable housing

Intro

Tiffany Grant interviews award-winning mobile home investor Rachel Hernandez about transitioning from single-family rentals to the mobile home niche and the unique cash-flow advantages it offers.
Rachel Hernandez is an author, blogger, and podcaster with over 10 years of mobile home investing experience. Her site Adventures in Mobile Homes has been named among the Top 20 Real Estate Investing Blogs, and her podcast was nominated for a 2020 Golden Crane Award.

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– What Is a Mobile Home & Rachel’s Path into the Niche

Rachel explains that mobile (manufactured) homes are literally movable, giving investors flexibility single-family homes lack.

I started out as a bird dog… then wholesaler… then landlord doing buy-and-hold with single-family homes.
– Rachel Hernandez

After reading Lonnie Scruggs’ Deals on Wheels she sold her entire single-family portfolio to focus on mobile homes for better cash flow and lower overhead.

– Why Rachel Made the Switch – Cash Flow & Risk Comparison

Single-family rentals required paying mortgage, insurance, and HOA first; property managers still needed oversight.

There has to be a different way to do this as a small investor.
– Rachel Hernandez

Mobile homes bought for cash eliminate mortgage payments, reduce entry capital, and send 100 % of rent to the investor.

– How the Business Model Works – Buying, Selling & Renting

Rachel stays local in Texas, buys homes inside existing parks, and either rents or owner-finances them.

I bought that home for $3,600 cash… sold it owner financing for $10,000. I got $1,000 down and $250 a month.
– Rachel Hernandez

Residents pay lot rent directly to the park; the investor only collects the home payment.

– Affordable Housing Impact & Breaking the Stigma

Rachel stresses that manufactured homes provide attainable housing and that communities span low-, mid-, and high-end tiers.

Manufactured housing is like the last affordable housing option.
– Rachel Hernandez

Many residents come from families that have lived in mobile homes for generations.

– Finding Parks & Building Relationships

Start locally: drive neighborhoods, compile park lists, and introduce yourself to managers and owners.

I really advocate being a local investor… get to know the park manager, the park owner.
– Rachel Hernandez

Choose parks whose culture and clientele match your personality and business goals.

– Resources & Free Training

Rachel offers a free training class on her site for anyone wanting to learn mobile home investing.

Full show notes and links are available at MoneyTalkWithT.com.

Books Mentioned

Deals on Wheels by Lonnie Scruggs

Resources

Topics

Mobile Home InvestingReal Estate NichesCash Flow StrategiesAffordable HousingOwner FinancingPark RelationshipsLocal InvestingReal Estate StigmaManufactured HomesBeginner Investor Tips