What if the key to long-term wealth wasn’t found in skyscrapers or single-family homes—but in overlooked, misunderstood mobile home parks?
Mobile home parks (MHPs) are often misunderstood, but for those looking to build real estate portfolios with strong cash flow, tenant stability, and legacy potential, MHPs are one of the most strategic investment plays available today. In this episode, Corwyn sits down with Arthur Varela and Bobby Wymbs from Matthews Real Estate to explore why mobile home parks are recession-resistant, how you can break into the space—even with limited capital—and how this asset class compares to more traditional investments like multifamily, triple-net leases, and self-storage.
Together, they unpack not only the numbers and mechanics but also the mindset shifts required to see value where others don’t. Whether you’re looking to start small, transition a 1031 exchange into something more passive, or expand your existing portfolio with creative financing, this episode offers an inside look into a corner of real estate that’s gaining serious momentum.
Key Takeaways
- 01:45 – How mobile home parks meet a critical need in underserved communities
- 04:10 – What makes MHPs more stable than multifamily properties
- 06:45 – Breaking barriers: Why zoning limits = less competition
- 09:55 – Where the deals are: Off-market tips and what institutional buyers are missing
- 12:20 – The window of opportunity: Timing, trends, and shifts in investor attention
- 17:25 – Creative financing that works (even in today’s interest rate climate)
- 18:23 – 1031 exchanges and the MHP advantage
- 20:00 – How passive are MHPs really? Operational insights from the field
- 21:35 – Finding the right broker and building your network
- 22:10 – Final advice: Affordable housing is impact investing that pays
Connect with Bobby and Arthur:
- Website: www.matthews.com
Connect with Corwyn:
- Contact Number: 843-619-3005
- Linkedin: https://www.linkedin.com/in/cmelette/
Shoutout to our Sponsor: Mellifund Capital, LLC
Need funding for your next real estate flip or build? MelliFund Capital makes it fast, flexible, and investor-friendly. Visit MelliFundCapital.com and fund your future today. Again, that’s MelliFundCapital.com, M-E-L-L-I-L-U-N-D, Capital.com.
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ARTHUR:
There’s not as many homes out there to house everybody and parks are that bridge between affordability there. And I believe that it’s only going to grow in demand as time goes. And I see that prices are going to continue to go up. A lot of people are just still working to try to make those ends meet. And where in the country do you see mobile home lot rents go for 180, $180 a lot? And that I was in, uh, working on some deals out in the Carolinas. So it’s, I don’t know, where do I see that?
CORWYN:
Good morning. Good morning and great morning guys. Welcome to another fabulous episode of Exit Strategies Radio Show. Hey, I’m your host, Corwyn J. Melette, broker and owner of Exit Realty Low Country Group and beautiful of Charleston, South Carolina. Hey, there’s time to listen to this show. You know what it is. It’s going to be a great time. That’s for one. But number two, our mission here is very simple to empower our community through financial literacy and real estate education, God’s legacy building. That is what we do. So I’m going to start off by doing something a little bit different today. It’s working on a, I don’t want to label it a transition, but I will call it one today because I want to kind of plant the seed for this next level, a next section of the journey. You all know that our show here is based upon that book of Exodus and how we move people from one place to another. And we have been striving to do that with this show for the duration since we’ve been on air, which has now been several years and I’m always humbled by that, but I’m going to start with a question today for you that are tuned in, who got your ears, quote unquote, to the dial, if you will, could investing in mobile home parks today, fund your kid’s college as well as your retirement. Now today we are very humbled and honored to have two amazing gentlemen in the field of manufactured housing, mobile modulars, mobile home parts, all that stuff who are here and they’re going to drop a significant amount of nuggets on and I am super, super duper excited. So first we have with us, Bobby Wymbs. Bobby is with Matthew’s real estate. He is a guru and expert legislatively in manufactured housing and applications. We have with us Arthur Varela and Arthur also is with Matthew’s real estate. And he is the guy that knows how to put that deal together. And I’m super duper excited to have the gentlemen with us today. So Bobby, Arthur, how are you guys doing?
BOBBY:
Oh, well, thank you for asking.
CORWYN:
Doing great. If you don’t mind gentlemen, high level overview, let’s get started. And Bobby, I’m gonna start with you. How level are you? Who you are, what you do, and let’s go from there.
BOBBY:
Yeah, I’m Bobby with Matthew’s Arthur. And I came over here about three years ago to Matthew’s to start the mobile home park division. And it’s been a lot of fun. Very interesting. Falling in love with the space. It’s a very deep and interesting space that’s taken storm over the last handful of years. It’s very interesting. And the fact that it’s something that a lot of the country needs in affordable housing. It’s a good investment. And, you know, we kind of just hit the ground running. And I came over here from working in wealth management, had a friend who was working at Matthew’s real estate, working the industrial side of things. And he’d always tell me, you need to be over here with us. You’re an outgoing, personable person. And I think you thrive over here. And I wasn’t necessarily loving my job before. So that was a good time to switch over and very happy with the decision I made.
ARTHUR:
So Arthur and yourself. Yeah. Like Bobby said, we came to Matthew’s around three years ago, ultimately, or I guess more so myself born and raised here in Southern California and Orange County. Always loved playing different types of sports, baseball, basketball, football were my top three. Went to school, UC Santa Barbara studied economics there. After school took some time to ponder on what I really wanted to do. I always knew real estate was very interesting, very lucrative. A lot of people speak very highly of it, especially more long-term people that have that outlook. Started here at Matthew’s. And if you do some research on Matthew’s, ultimately you’re going to know it’s more of a retail focused firm. But ultimately we wanted to make a splash, start something different. And out of everything we chose, it was mobile home parks. So that’s where we’re at.
CORWYN:
So Bobby, my notes tell me that you are a leader, national expert in these types of transactions, as far as manufactured homes, manufactured home parks, and you recently authored a piece. So before we get that far into it, let me kind of throw this out to you. Gentlemen, manufactured housing is the original affordable housing. I mean, the government created these standards, these guidelines a number of years ago. If you don’t mind, give us your take. And Arthur, I’m going to come back around to you on this to begin with, but give us your take on what does that mean and where’s the opportunity for consumers as it relates to manufactured housing?
BOBBY:
Yeah. I mean, on the affordability side of things, as an investor in mobile home parks, there’s a couple of things I would say you got to look out for, or what you got to do your research on before going into, I, I mainly and mostly focus in California, mobile home parks, and it’s a state right now where there’s a lot of people either stopping or putting a hold on buying more parks in the state for political or economic reasons, and looking to go into Western states that are still on the Western side, but a little bit East, maybe Arizona, Nevada, just because of the tenant payable laws and rent control, that’s the one thing that will make or break a deal. What’s the rent control in the area? I mean, that’s something that is different from city to city, even if it’s in the same county, right? So there’s a lot of things that, and all the nuances, is it on city services? Is it on septic? What condition are those in? So there’s a lot of nuances that go into it, rather than kind of jumping in blindly, getting a mobile home park and hoping that you’ll make money, right? So, there’s ways to go about it to be more safe, knowing what types of parks you’re getting into, if it’s city services and all tenant owned homes, then, you know, it’s probably gonna be a little bit easier journey than if you’re getting into a park that’s rent controlled, has a septic and well, that’s not in great condition and all park owned homes with a higher risk. So, there’s a lot of factors that go into it.
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ARTHUR:
In my humble opinion, I believe so. Ultimately, I mean, you see all the headlines all over the place. Housing’s becoming more unaffordable every day and I believe, and I think Bobby as well, believes that mobile home parks are that last wall of defense against affordable or per se for affordable housing. I mean, just being here in California, you’re seeing the home prices never thought, I mean, at this point in time we’d be here, but, and then you go to certain other markets, say where you’re at Corwyn in South Carolina was working on a deal out in Sumter and then when I was working on that deal, a lot of these people would ask me certain criteria like Bobby was going into, Hey, what’s the infrastructure look like? How many homes does the landlord own? The local municipalities, kind of what are the laws out there? So it differs from state to state, but ultimately, I mean, there’s everyone needs a roof over their head and this is that last resort per se.
CORWYN:
You working with and work with investors who invest in these types of assets, this particular asset class. So for someone who’s maybe thinking about it, you know, cause I mean, people just have a negative connotation about manufactured housing, let’s be real. What do you say to them? How do you get them to understand that this asset class is a viable product?
ARTHUR:
To me, I mean, the numbers speak for themselves. I mean, ultimately you got to do your research on the market and what it’ll bear, but it comes down to supply and demand. There’s not as many homes out there to house everybody and parks are that bridge between affordability there. And I believe that it’s only going to grow in demand as time goes. And I see that prices are going to continue to go up. A lot of people are just still working to try to make those ends meet. And where in the country do you see mobile home lot rents go for 180, $180 a lot? And that I was in, uh, working on some deals out in the Carolinas. So it’s, I don’t know, where do I see that?
CORWYN:
Yeah, it’s almost unreal. So Bobby, you’re into the regulation piece of it. That’s what I understand to be your arena. So give us kind of an entry, I guess, high level view of what that means and what should a consumer be mindful of as relates to regulation, because obviously in just the wrong regulation or too much regulation can impact negatively profitability. So let’s talk about that.
BOBBY:
Yeah. I mean, before I get into that, I wanted to also add to what Arthur said. There’s, you were talking about the give your two cents as to why mobile home parks are a good investment. You know, I see a lot more institutionalized groups getting into the space over the last five years. A lot of coincidentally enough, I’ve heard it compared to self-storage back in the early two thousands, where it’s been back then it was not a very popular investment, it definitely was, but it’s become more and more over time. And a lot of those same groups that were getting into self-storage kind of earlier now getting into mobile home parks, making their branch, make it diversify a little bit. So you see a more institutionalized people who were on the way for a self-storage also getting mobile home parks as a branch, a sector. So, and that’s kind of my two cents as to confirmation that it’s something that some people should think about getting into, they’re looking at diverse their assets or even just to get their foot in the game, but as far as the regulations, I think it’s more so here in California, maybe some other states as well, but there’s a lot of states out there where you don’t have to think as much about it, although you always have to think a lot about it when you’re dealing with states or cities or counties. But as far as California, what I went into was the rent control and eviction laws, and I guess instead of going into depth about what they are, I can give you an example, here in Los Angeles, we were working on a park, two parks, both about the same unit count, same tenant owned homes, both on city services. And one of them was in a city in Los Angeles or neighborhood that doesn’t really have rent control as much as the other parts of the county do. Right. So they were able to raise rents six to 8% a year. We’re under rent, other market rents. So there’s a lot of upside there and we’re getting offers between 125 to 135 a unit and the four and a half to 5% cap rate, a cap rate range. And then maybe a mile and a half down the road in a different city, they weren’t able to raise rents for four years because of the COVID when they stopped allowing rental increases and even when they started again, it’s anywhere from two and a half to three and a half percent, right? And we’re getting offers in the six to 7% cap rate range and about a 70 to 80,000 per unit. So that’s a big Delta there. And that’s why I bring up the, you got to really know what the laws and regulations are because when it comes time to sell, it could be that $50,000 difference and yeah, you’re gonna be paying a premium for it when you get it up front, but you got to look at the upside and where are the market rents? How are you going to be able to get there? How long will it take you to get there? And just be aware of going into the deal in the first place.
CORWYN:
So you guys have expanded outside of your immediate locale, actually out of your immediate state. Is that because as we say on this, the regulation and obviously profitability, is that a reason why that you guys are exploring beyond where you currently are because you’re looking for, you’re seeking out opportunities that would help with profitability for yourselves, for your investors versus the regulation that may be hindering that.
BOBBY:
Initially, primarily focused in California. We worked on deals in Arizona, Nevada, North Dakota, kind of states here and there, and that’s mainly through just relationships that we’ve made with owners who may have parks in those other states as well, or just for us wanting to a lot of, a good amount, have wanted to sell some of their parks in California and get into other states and we thought if we can dig up deals up there and make relationships in other states, we’ll be able to 1031 them into a park in the state that they’re looking for, maybe a better deal that’s off market. So just being able to create that value for them, saying, Hey, we have some parks over here in the state you’re looking at, rather than just going on crack C, finding a deal that’s been on there for 400 days, that everyone and their mother has seen online. So I’m just creating value and just through relationships.
ARTHUR:
And I guess to build off that too, I mean, Matthews, we’re expanding like crazy. I mean, it’s better to be boots on the ground and whatever region you’re focused on, then, Hey, I’m calling from all across the country. I mean, you want to go out and see the dirt being there in person. So a whole lot different than the Google street view, to say the least.
CORWYN:
That’s fair. That’s fair. So what I’m hearing is, as you guys are building, if that makes sense, what I’m hearing is that you’re seeing how to maneuver and you’re helping your investors to maneuver in a fashion that helps them, helping them to navigate. I always talk sometimes in real estate that we’re Sherpas. We know our way up the mountain, so to speak. So we lead people and tell them step here and don’t step here and so forth. And as you guys have been working and essentially building this system, you’ve learned where to traverse and where not to, so you can guide people to profitability, if that makes any sense. So you guys are, this is your arena. This is your space. What as an entry, someone who is looking to get into this space, maybe to work with you guys, what would that look like as far as, you know, initial and then what questions, if you will, should they ask? Because those are the questions that you’re going to make sure that you give them answers to, quote unquote, day one.
ARTHUR:
When it comes to parks, I mean, ultimately what you’re going to want to know are the basics is how many lots, what is the current occupancy, how many homes, if any, does the landlord own, the person who owns the land again, what is that lot rent, what is the home rent, what are medium home prices or homes going for in the area, what’s the household income in the area, those are a few that come to mind and ultimately you’re going to want to know those to know, Hey, I’m investing in a solid market that I know will be here for future generations. There are some gray areas to where, Hey, someone would look maybe in a more rural area, more an area that kind of doesn’t have much going on if they have adjacent property close by, they maybe would consider that, but for somebody new getting into the space, those would be the basic fundamental questions you ask. And then it gets more nuanced from there. Okay. And Bobby, your take on it.
BOBBY:
Yeah. I mean, I think everything that Arthur kind of suggested is what we highlight when we’re selling a deal to a potential buyer, someone getting into the space. Right. And then also just understanding what the upsides are, building on top of what Arthur said, what is the upside value here? Is there a good amount of park-owned homes where there’s a lot of people looking for their own homes that they can buy from the park and then live in the park after that? You know, so can you make some quick cash in a rent controlled market by selling those homes off and make them into tenant-owned homes? Is it kind of a lower strict rent control market where they might be $200 under market rent, where you have some upside to kind of make that five cap that you buy into a seven cap over two, three, five years, whatever it may be. So looking at the statistics, like Arthur said, how many homes, what services is it on, is there room for expansion, but also just looking into the upside potential outside of the facts, then also looking into the risks, what are some things that can come up that may decrease the value of my investment, make it tougher on me to operate, things like that.
ARTHUR:
Okay. Also one other note too is financing. I think in mobile home parks, ultimately a lot of these first-time buyers are going to need some sort of debt and specifically with mobile home parks, I bet you probably see it in some other products as well, but been seeing pretty commonly a lot of sellers holding a note or doing some sort of seller financing to get the deal across the finish line. Ultimately, given the times we’re in today, financing doesn’t seem very favorable. So, hey, what other ways can we get around it? And a lot of these sellers, they’ve owned the park for multiple generations and they don’t own or have much debt on it. So it makes sense for them as well and ultimately would also lessen their tax bill after all is said and done as well, if you were to go that route compared to the traditional route to where, oh, they got to find somewhere to place that equity and go about jumping through some more hoops that way.
CORWYN:
So creative often sometimes wins, wins in these situations, what I just heard, Arthur. So thank you for that injection because I did have that as a potential question. You guys do a lot of these as 1031 tax deferred exchanges. How difficult is it? Let’s say someone is transitioning out of a small apartment building and decide, okay, look, this is where I want to go to. How difficult is that to manage as a 1031 or are there any more challenges than if it was going to a larger apartment building?
ARTHUR:
So you’re saying if they sold their apartment and bought a park is what you’re saying? Yeah, I’d say they’re pretty similar, but it just depends on, obviously you’re dealing with, may deal with a different type of tenant base. Those people, hey, they’re rubbing, it’s hard for them sometimes to rub two pennies together and got to be, or show some empathy towards that. A lot of these institutional buyers per se, you hear buy the park and raise rents a hundred percent or jump rents like crazy. You have to see it from the tenant’s perspective as well, but ultimately the similarity would be, Hey, it’s multifamily. I own units, so on and so forth. The difference would be the type of tenants you’d attract. And also as well, I would say that mobile home parks are a bit more stickier than apartments in regards to occupancy. A lot of people, if you were to stay in a park, they typically stay longer than they do in apartments. Makes sense.
CORWYN:
Makes sense. Probably any additional insight on any of that?
BOBBY:
Yeah. I mean, as far as going from apartment building into mobile home parks, it is the most similar asset type. So there is going to be some familiarity there, but I wouldn’t say it’s like, you know, it’s not a direct switch where you’re going to be on top of everything. Know every problem that’s gonna be coming your way and how to solve it. Right. There is going to be some nuances, a lot of differences, but it is the most similar. You know, as far as coming from other product types, if you’re coming over from triple net, right, you’re going to be, the biggest difference is going to be getting your hands more dirty, a lot of more day to day. You’re not just going to be going to the online to see if you’re a fortune 500 company sent your check on the first of every month. So just got to know what you’re getting yourself into a lot more hands-on, a lot more management on a day-to-day level. Even if you have a management property or a management company in place, you’re still going to have to make sure a lot more often if you’re coming from triple net that everything’s going smoothly.
CORWYN:
So gentlemen, this is probably a great place to make sure we plug your contact bin, starting with you Arthur, where can people get in contact? Well, matter of fact, either one of you, because I imagine they can, if they get one, they get technically both of you. Where can people reach out to you if they have any questions about what they may have heard or what they didn’t hear here on today’s show?
ARTHUR:
Yeah, feel free. Our information’s on our website, Matthews with two T’s, Matthews.com. Also, you could find us on LinkedIn. We also are, all of our personal numbers are on there as well on the website. And yeah, I don’t know if Bobby has any others.
BOBBY:
Yeah, no. Matthews.com. You can just go to our agents. Arthur’s in the Orange County office. I’m in the El Segundo office. Make it easy to find us. You can see all the listings on there as well. They’ll actually be posted there about a week or two before they hit the open market. So that’s where to find us.
CORWYN:
That is awesome. Look, for our listeners guys, y’all know me, I’m already on the website and look here, it looks awesome. So y’all please make sure y’all go check it out. Now, gentlemen, I’m gonna ask you guys, I think I’m gonna switch up one of the questions that we typically ask that might drop question and ask you more frame or takeaway each of you. Our show here focuses on legacy building. We want our folks to begin to create legacy for themselves, for their families that will benefit them for generations yet to come. And with that, knowing what you know, so I got the guru, so I got to ask, but knowing what you know, give me a takeaway for someone who is either to just started or is in initial phases, if you will, of this mindset of, okay, look, we want to create legacy and build wealth for our family. Give me a takeaway, gentlemen, each of you.
ARTHUR:
For me, I just say, continue to be curious. Don’t leave no stone unturned, especially in the mobile home park space. People that I speak with all the time, been in it 20, 30, 40 years. I share with them knowledge that they didn’t even know about, always to continue learning, continue evolving. And what you don’t know is what I’ll leave you with.
CORWYN:
Interesting. I like that. Bobby?
BOBBY:
Yeah. For someone coming into, I think I wish I did a little bit more in the beginning when I was starting out, Arthur and I took it head on, so we didn’t have many people lean on. So going into the space, I’d say go and get yourself in front of people who are experts in the space, whether it’s a broker or if you’re looking in a certain state, look up who the biggest owners are in the area and just ask questions. Some of them even have some investor, the kind of product types or products, whatever you want to put it, where you can invest money into their fund and you can see how it all operates that way. I know when I came to the space, there’s some bigger owners in California that have helped me out understanding more in my first six months to 12 months, underwriting deals with them, seeing how they see deals. Cause as brokers, we might underwrite a little bit differently than they do. What do they see? How do they go about deals? So when you talk to those people coming into the space who own dozens of parks, you can learn a lot of knowledge from them and then jump into it yourself and build off that. So my piece of advice would be get yourself in front of the people in the room who have been there the longest or know the most about the space and kind of absorb knowledge like a sponge.
CORWYN:
That is awesome. Well, gentlemen, I want to thank you guys for taking time out to be with us on today’s show. It’s been my honor to spend some time with you, to glean just a smidge. And I only think we scratched the surface good on what you guys know and what you guys can help people to do. So, you know, I want to thank you for taking time out of your schedule to be on with us today.
BOBBY:
Of course. Thanks for having us.
CORWYN:
Thank you. You’re welcome. So for our listeners, Hey guys, look, I want to invite you guys to submit your questions to us. We are all talking about legacy building, how we can take you and your family to the next level, more importantly, set up the stairwell for you guys to continue on in the future. So for our future episodes, we’d love to hear from you. Please reach out. You can get us at radio at corwynmelette.com or you can get us at info at exitstrategiesradioshow.com. Please reach out. Please let us know your questions so we can make sure that we get the guests on show on air for you to get the answers. Guys, y’all know how I feel. You know what I say? You can always put the two of those things together. And I give it to you this way, which is to tell you that I love you. I love you. I love you. And we’re going to see you guys out there in those streets.
