Scale is crucial to achieving financial freedom with real estate. And while multifamily is the fastest way to achieve scale, there are other commercial asset classes that will get you there, provided you understand the challenges and how to overcome them. Kevin Bupp is living the dream with mobile home parks, and he’s well-versed what it takes to grow a portfolio in this niche market.
Kevin is the CEO of Sunrise Capital Investors, a firm that helps investors build legacy wealth through commercial real estate investing. Kevin and his team focus on mobile home parks and parking assets, market segments with less competition than other asset classes. He has been a real estate investor since he was 19 years old, and he has specialized in mobile home parks for the last 10 years. Kevin is also the host of the Real Estate Investing for Cashflow Podcast.
On this episode of Financial Freedom with Real Estate Investing, Kevin joins cohost Garrett Lynch and me to discuss the pros and cons of investing in mobile home parks. He explains why he made the commitment to self-manage his portfolio and shares best practices for building your own property management company. Listen in to understand the process of finding mobile home park deals and learn how Kevin built and scaled a successful mobile home park investing business!
Key Takeaways
What Kevin loves about mobile home parks
- Very high cash-on-cash returns
- Mom-and-pop owners = upside potential
- Very low tenant turnover rate
The challenges of mobile home park investing
- Difficult to scale (focus on large lots)
- Must make commitment to self-manage
How to build a property management company
- Add value to established group
- Hire from top down, not bottom up
Kevin’s advice on scaling a mobile home portfolio
- Grow efficiently, do only good deals
- Focus on quality of life
Kevin’s first hires for a property management team
- Invest in director of property management
- Experienced administrative assistant
What a mobile home park value-add deal looks like
- Aesthetic improvements (e.g.: road repair)
- Renovate park-owned units
- Install new homes on vacant lots
- Individual submeters on each lot
Why Kevin prefers selling mobile homes to renting
- Little to no profit on renters
- Average stay for owners = 9 years
Kevin’s debt strategy for mobile home parks
- Fannie and Freddie loans
- Community banks or CMBS lenders
How Kevin finds mobile home park deals
- Cold call and direct mail prospects
- Relationships with brokers
How Kevin gets property owner contact info
- Secretary of state site for LLC members
- Skip trace software
Why Kevin is getting into parking assets
- Cashflow, nice return on investment
- Positive future potential
Connect with Kevin Bupp
Real Estate Investing for Cashflow Podcast
Resources
Access Michael’s Blueprint to Your First Multifamily Deal Training
Learn About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Kevin Bupp on Financial Freedom with Real Estate Investing EP054
Hunter Thompson on Financial Freedom with Real Estate Investing EP087
