Is Investing in Mobile Homes a Good Idea?

Is Investing in Mobile Homes a Good Idea?

Investing in mobile homes can be a great idea!  Of course, like any investment there’s always risk.  Having a better understanding of what is possible with mobile homes could help reduce that risk and open up an investors eyes to a whole new type of opportunity.  Here are a few reasons why Investing in mobile homes could be a good idea for you.  I will also share some things to avoid when investing in mobile homes. 

First off, it’s affordable!  Mobile and manufactured houses are affordable for home owners, renters, and investors.  In times of economic uncertainty, there’s one thing that I am certain of.  That is the fact that everyone needs a place to live.  In a stock portfolio, an investor diversifies to help them reduce market risk.  An experienced investor can do the same with mobile homes.  Affordable prices mean a low barrier of entry for new investors, meaning it’s less expensive and less capital to raise for our flips and rentals.

Rates of return can be favorable!  What I’ve noticed is that I can buy a double wide home on land for significantly less than a single family house.  After renovations I typically price them 15-20% less that what a renovated single family house sells for.  Example:  I recently purchased a doublewide mobile home on a half acre of land for $37,000.  A single family house in similar condition would sell for $70,000.  After renovation, the doublewide went on under contract for $104,900.  A single family home in that same, in similar condition would list for $125,000.  The renovation costs to a mobile home can also be significantly less.  They are easier to renovate and the materials typically cost less.  An investor can also make great returns by renting mobile homes for cash flow.  We can buy them at a discount yet still rent them at a competitive market rate.  A 3 bedroom mobile home will rent for the same as a nearby 2 bedroom home or apartment.  Run the math in your area and see what the potential rents and returns could be! 

There are also strategies for everyone.  No matter what a persons budget.  I’ve been asked to take mobile homes for free before, so when I say everyone, that’s why.  We can also buy mobile homes that are located in a mobile home park.  That mobile home park does not have to be your park.  It can be someone else’s.  In this case we would rent the land by paying “Lot Rent”.

Like all things in real estate, just because something is cheap, doesn’t mean that it’s a good deal.  In my opinion investing in mobile homes is a good idea, but I highly recommend a  person educating themselves before jumping in.  If an investor is already investing in real estate, adapting wont be difficult.  There are, however, many small details that could make a big impact when it comes too investing in mobile homes. 

For more information follow me at ChristyDuckett.com

Happy Investing!

Christy Duckett