Millionaire Mindcast

I Bought a Mobile Home Park for Under $10K—And I’ll Pay $0 in Taxes | Wise Investor Segment


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1. Episode Overview

Matty A. shares a remarkable story: purchasing a mobile home park for less than $10,000 and structuring it so that he potentially pays zero income taxes. Discover how depreciation, cost segregation, and smart deal mechanics transformed a small investment into a powerful income generator with minimal tax impact.


2. The Deal Breakdown

  • Acquired a micro-sized mobile home park—priced below $10K—with either land ownership or long-term lease structure.
  • Generates consistent lot‑rent revenue, with tenants responsible for their own homes and maintenance.


3. Zero Taxes: How It’s Done

  • Accelerated Depreciation: Infrastructure and personal property assets are front‑loaded into early years.
  • Cost Segregation: Breaking down components into shorter depreciation classes (e.g., utilities, fences, signage) allows for significant early tax deductions.
  • Paper Losses: These deductions offset any operational income, effectively wiping out taxable profit in early years.


4. Why Mobile Home Parks Deliver High Value

  • Ultra‑Low Entry Cost: CRE access at micro price points.
  • Recession‑Resistant Cash Flow: Stable lots income with minimal landlord capital needs.
  • Scalability: Bulk acquisitions or infrastructure improvements can quickly compound property value and income while still benefiting from depreciation.


5. Key Insights

  • Even ultra-low‑cost CRE deals can outperform larger investments when structured correctly.
  • Smart tax planning—like cost segregation—can turn small passive income into tax‑free cash.
  • Mobile home parks provide a powerful wealth vehicle for investors seeking cash flow, tax efficiency, and scalability.


6. Action Steps for Investors

  1. Locate small mobile home parks available via distressed sales or creative financing.
  2. Engage a tax professional to prepare a cost segregation study.
  3. Add depreciable infrastructure to maximize early deductions.
  4. Plan for tax filings that leverage paper losses to reduce taxable income.
  5. Stay compliant with reporting norms and cash transaction thresholds.


Final Takeaway

This episode reveals how a tiny CRE acquisition—under $10,000—can become a tax-sheltered income engine. Mobile home parks may be small, but with the right structure and mindset, they can deliver outsized returns and hidden power.


Episode Sponsored By:

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