The Best Kept Secret in Real Estate Investing — Manufactured and Mobile Homes on Land

Mobile home investing is often overlooked when it comes to real estate investing. We’re here to discuss the benefits of one of the best-kept secrets in real estate investing — manufactured and mobile homes on land. Learn why investing in mobile homes can be a lucrative and profitable strategy.

Key Takeaways

• Investing in mobile and manufactured homes comes with less competition than other real estate investment types.
• A mobile home and a manufactured home are the same, and the different names imply the date each was made.
• Mobile homes are always in demand, as they offer affordable living that’s also private and spacious.
• The maintenance costs of manufactured homes are usually lower than that of single-family homes.
• The initial upfront costs of buying a mobile home or lot space are also lower than buying a single-family home.
• There are many strategies available to invest in mobile homes, including owning the mobile home, owning just the land, or investing in the whole mobile home park.

What Is a Mobile or Manufactured Home?

Before diving into mobile home investment strategies, it’s a good idea to cover exactly what mobile and manufactured homes are. A mobile home is a prefabricated structure that’s built in a factory and placed on an empty plot of land. A manufactured home is similar to a mobile home.

In fact, the only difference between a manufactured and a mobile home is the date on which they were built. Mobile homes built before June 15, 1976, are referred to as mobile homes, and homes built after this date are referred to as manufactured homes. Even today, mobile homes and manufactured homes are used interchangeably to discuss pre-built homes.

Why Invest in Manufactured and Mobile Homes on Land?

There are a few reasons why adding mobile homes to your real estate investment portfolio may be a good idea, including:

Less Competition

Mobile home investing is still one of the best-kept secrets of real estate investments. Not many investors ever consider the benefits of investing in manufactured homes, meaning the market isn’t as competitive. This means you won’t have to enter into competitive price bids to secure the mobile homes or parks you want. It also means investing in mobile homes is still affordable.

High Demand

Despite there being less competition, mobile homes are always in demand. They offer a lower cost of living that may be more affordable to some. Mobile homes are a great option for tenants who may not be able to afford a single-family home but want more space and privacy than an apartment offers.

Mobile homes have also become affordable residency for seniors who want to retire in warmer areas. All 50 U.S. states have mobile home parks, meaning you can easily find demand in your area.

Lower Upkeep and Renovation Costs

Mobile home upkeep and renovation costs also tend to be lower than that of other real estate investment types. Manufactured homes are usually smaller than single-family homes, meaning there’s less to maintain. The lot owner may also cover many of the costs, including utilities and water. You won’t have to maintain landscaping or grounds repairs as a property owner.

Low Upfront Costs

A mobile home investment may also be a good option if you don’t have a lot of funds set aside. Mobile homes typically cost less than single-family homes, making them an easier barrier to entry. Unimproved land is also more affordable than a property that already has homes on it. The lower costs of manufactured homes also mean lower taxes.

Mobile Home Investing Strategies

Another benefit of mobile home investing is that there are multiple ways to invest. Here are a few mobile home investing strategies to consider:

• Own the mobile home without the land: When you move a mobile or manufactured home onto someone else’s land, you have less liability. The park’s owner is responsible for maintaining the land and utilities, which means less upkeep cost for you. You can rent or sell the mobile home once placed on the land.
• Own the mobile home and the land: You can also double your revenue by owning both the mobile home and the park. This means you can charge rent for each mobile home and a lot fee.
• Purchase the mobile home park: Some people may also prefer to own the mobile home park, which includes the land underneath the manufactured homes but not the homes themselves. You won’t be responsible for home repairs and can earn a passive income through lot fees.
• Create your own mobile home park: Another investment option is to purchase a large piece of land and designate it as a mobile home park. Then, you can purchase mobile homes and rent them out or sell pieces of land to property owners.
• Flip mobile homes: You could also purchase used mobile homes, renovate and repair them, and then sell them for a profit.
• Sell mobile homes wholesale: If you have access to a lot of mobile homes or a manufactured home designer, you can sell them wholesale to a mobile home park developer.
• Rent or rent-to-own mobile homes: Renting manufactured homes provides you with a monthly income. You can also rent-to-own, which involves renters paying a set price for a number of years before you transfer ownership of the mobile home to them.

The different investing strategies mean you can use manufactured homes as either a short- or long-term investment. The manufactured home strategy for you depends on many factors, including how much you want to invest and your risk tolerance. You’ll also be subject to what mobile homes or lots are available in the area where you want to invest.

Interested in learning more about mobile home investing? Do you want access to tips and tricks on investing in manufactured homes, plus some of the other best-kept secrets of real estate investing? Make sure you sign up for a free Infinity Investment membership, where you can access workshops and on-demand courses. Our paid membership is geared toward investors who are ready to take the next step toward building their real estate portfolio.