I Bought a Mobile Home Park for Under $10K—And I’ll Pay $0 in Taxes | Wise Investor Segment
Millionaire Mindcast
Matt Aitchison
4.4 • 716 Ratings
🗓️ 1 August 2025
⏱️ 16 minutes
🧾️ Download transcript
Summary
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
- Locate small mobile home parks available via distressed sales or creative financing.
- Engage a tax professional to prepare a cost segregation study.
- Add depreciable infrastructure to maximize early deductions.
- Plan for tax filings that leverage paper losses to reduce taxable income.
- 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.
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Transcript
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| 0:00.0 | What's going on, guys, Maddie Ate. Welcome back to the channel where we help you build wealth, investing in real estate. |
| 0:11.2 | This month, I officially closed on a mobile home park in a Gillette, Wyoming for $660,000. |
| 0:20.7 | The beauty of this, this property appraised at, I believe, 880. So already I'm |
| 0:26.1 | walking into a couple hundred thousand dollars in equity as the park sits today. It is a value |
| 0:31.9 | ad play. It was a property that was inherited by two siblings from their parents who own the |
| 0:37.1 | park for, call it it 30, 40 years. |
| 0:39.7 | And they don't own and or operate real estate. So therefore, they decided to just cash in on it. |
| 0:47.3 | And I was able to structure the deal with 100% financing. And it simply put, I was able to go to a local community bank and they said, |
| 0:57.4 | yeah, we like the price that you're getting it for. We think it's probably a little bit below market |
| 1:01.1 | price. And we'll give you 75% of the purchase price. Great. So now I just needed to figure out |
| 1:08.4 | the next 25% down payment that I had to come to the table with. |
| 1:12.4 | Or if you're creative, what I did was I went to the owner |
| 1:17.0 | and I said, hey, I'm going to get you 75% of your money today |
| 1:20.9 | when we close. |
| 1:22.6 | And instead of you paying taxes on 100% of the purchase price, |
| 1:32.9 | would 75% of the purchase price, would 75% of this purchase price keep you satisfied for a couple years? Yeah, no problem. Awesome. And how would you like outside of getting that |
| 1:38.2 | big check to also get some monthly cash flow on top of that? Sure, tell me more. So long story short, I was able to |
| 1:47.3 | show them the value that by getting their 75% up front and the amount of tax that they would |
| 1:55.5 | have to pay additionally, if they took all of that money up front, what that looked like, and show them that also, if they were to sell or finance and carry back the remaining 25% of the purchase price, that I was able to pay them a monthly check. |
| 2:14.6 | And the only caveat to that was they would need to be comfortable putting their |
| 2:20.1 | loan and lean position behind the banks in second. We were able to walk through all of the details |
| 2:26.3 | around that, the benefits to ultimately de-risk that position for them. And that is how I was |
... |
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