Successful Investor's Advice

I discovered through trial-and-error that what an accomplished investor writes in a book may not necessarily work in your market.

Let me explain.

Case Study

I bought Tony Collela’s Investing in Mobile Homes with Land book a couple years ago and have since read it multiple times. It’s a quick and informative read that outlines his rental business of mobile homes with land. He gives a detailed account of the common repairs he makes to his homes, including using window units instead of central A/C whenever possible to cut costs.

Here’s the Situation:

We had just purchased our first land-home deal and were making the repairs to the home to get it rent-ready. The outdoor central A/C unit had been stolen before we purchased the property (common in our area when buying REOs) so I thought we could put several window units in the home to save us some money after we find a tenant-buyer (to prevent these from being stolen as well).

I didn’t know my buyers’ expectations upfront and was trying to learn them on the fly with this first deal. I knew going into this first deal that mobile home residents tended to have lower expectations for their housing; however, I wasn’t sure exactly what they were.

After a few showings, nobody was interested in buying a home that did not have central A/C. Here’s a couple reasons why:

  • Investing in South Carolina allows you to avoid nearly all of the cold-weather issues that other landlords around the country must deal with; however, you must provide a working air conditioner as we have many Summer days over 100 F and humid.