Mortgages & Creative Financing

Which Mobile Homes Are The Best For Investing, Reselling, And Profiting?

Expertise: Personal Development, Real Estate Investing Basics, Business Management, Mobile Homes, Real Estate News & Commentary, Landlording & Rental Properties, Mortgages & Creative Financing, Real Estate Marketing
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Mobile Home

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In last week’s article we discussed the importance of Investing with the path of least resistance when it comes to investing in individual mobile homes inside preexisting mobile home communities. In last week’s article we discussed the importance of investing in the right mobile home park when getting started. Many of the tips and advice given were in the vein of:

  • Saving money
  • Getting started quickly
  • Being able to target the most buyers possible
  • Sell for the most profit possible while still keeping the sale Win-Win

In this article we are going to have the same conversation with regards to the individual mobile homes you are purchasing in said parks. The below list is a quick outline for the beginner mobile home investor with regards to which mobile homes are a best investment for your first few deals.

1. Size of bedrooms:

In a past article we discussed the Notoriously small bedroom in some single-wide mobile homes. Make sure that your first investment mobile home does not have one of these small bedrooms. These small bedrooms are a real problem when it comes to reselling the mobile home to a buyer expecting to be able to use every bedroom.

2. Number of bedrooms:

In almost every market:

  • 4 bedrooms sell faster than 3 bedrooms
  • 3 bedrooms sell faster than 2 bedrooms
  • 2 bedrooms sell faster than 1 bedrooms

For this reason aim to make your first mobile home investment purchase a 3 bedroom. 4 bedrooms are rare however every lucrative if you are able to purchase one at the price and terms you need to make the deal Win-Win.

3. Age of the property:

Every mobile home has a buyer for it. With that said let us focus today’s article on the idea of being able to sell to the most amount of buyers that would be interested in this specific mobile home. Today’s floor plans are more open and spacious than the floor plans of past decades.

  • Mobile homes from the 2000’s you should consider new and easiest to sell assuming in good shape and with attractive terms.
  • Mobile homes from the 1990’s you should consider almost new and easy to sell assuming in good shape and with attractive terms.
  • Mobile homes from the 1980’s you should consider borderline average/old and are still relatively easy to sell assuming in good shape and with attractive terms.
  • Mobile homes from the 1970’s you should consider old and small, and are more difficult to sell assuming in good shape and with attractive terms.
  • Mobile homes from the 1960’s you should consider functionally-obsolescent and are the most difficult to sell assuming in good shape and with attractive terms..

4. Condition:

As stated in the bullets above the condition of your first few mobile homes at the time of resale should be in nice and very livable condition to target the majority of buyers. This is because most buyers with money and good income will want to purchase a mobile home that is ready to be moved into versus a mobile home that is a handyman special.

In addition to reselling your first few investment properties in nice and clean condition to your end buyers, try to aim for your first few properties to be clean and presentable when you find the home as well. Less repairs mean a faster sale, less holding time, and less rehab costs for you.

5. Appliances

For a full priced offer it can be wise to include appliances. Buyers may or may not want to have appliances included however it can be good to offer these with the sale of the home. Try to negotiate that these appliances convey with the sale when you originally purchase the investment mobile home from your seller.

6. Size of home

Single-wide or double-wide does not matter as much as an investor would think when it comes to reselling a mobile home quickly. If the rooms are a good size and there is ample space in the living room and kitchen then both single-wides and double-wides are comparable. Some investors claim that double-wides are actually a riskier investment because there is more square feet and roof space to be damaged and therefore may require repair in the future. In this author’s option the size makes no difference as long as the criteria above are met.

The bullets above follow the same mindset of investing with the path of least resistance. If you do not mind making repairs yourself or selling a mobile home with small bedrooms then please pick and choose the criteria above as you see fit. The above advice is aimed to make the newbie mobile home investor’s life easy while getting started and learning this business safely.

If I am missing anything please comment your questions and thoughts below.

Love what you do daily,

John Fedro

Investing since 2002, John started in real estate accidentally with a four-bedroom mobile home inside of a pre-existing mobile home park. Over the next 11 months, John added 10 more mobile homes to...
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    Brian F
    Replied over 6 years ago
    John Thank you for the info. My question for you is what if you goal is to hold and rent the property? Is it as important to follow the above rules or can you go to a later year home and still make profitable? I looked and I did not see a worksheet when you are looking to buy and rent out to see if its a good deal or the cash flow is not in the property. Do you have one? Thanks Brian
    John Fedro
    Replied over 6 years ago
    Hi Brian, All good questions. My first comment is about renting mobiles. Mobile homes can become damaged very easily when water is allowed to sit in a home or your tenants do not keep you alerted to repair issues needed. If you do decide to rent realize that many mobile home communities will not want you to rent or sublease homes in their parks. On your own land is of course fine so let’s pretend this is the way you wish to proceed. An older mobile home from the 1970 and 1960 will be more difficult to rent and keep someone inside of because of the smaller size and lower ceilings than current model mobile homes. My advice is to avoid these older homes as there are deals to be made with sellers selling new model mobile homes. Hope this makes sense and helps. With regards to the cash-flow analysis sheet. I do not offer a sheet like this. It would be my goal for you to look at a property, know the numbers, and know what you can pay for it to make it an attractive money-maker for you. You must know what you can sell and rent every mobile home for before you even make a purchase offer on said home. You will take into account park numbers, repair costs, holding costs, other mobiles for sale, your testing for buyers in the market, the time of year, etc. This way you know you are purchasing conservatively versus purchasing a skinny deal. All the best and don’t hesitate to comment any follow up questions you may have. Best, John Fedro
    James Pratt
    Replied over 6 years ago
    John, there are a few other things to consider. Mobile homes over 10 years old- banks won’t finance, that’s why one can buy them cheaply. Pre 1980- can have aluminum wire instead of copper, Quest plumbing instead of PVC, 2×4 exterior walls or less (some are 2×3″) space at 24″ on center not 16″. One should avoid high win areas as here today, gone tomorrow. Also try to buy ones with 3-Tab roofs, not the beer can ones. Check the front and back doors for soft spots and ceiling for stains. Any deal that cash flows or sells quickly is a good deal, just be careful.
    Replied about 6 years ago
    Hi, James, agreed with you here with Taking advantage of this homes that the bank wont lend loans because the age.Now, how can one take full advantage of this without being the big loser at the end,so what are the most important things to focus on when buy pre 1980 old MH?
    Replied over 6 years ago
    Hi James, Thanks for commenting and for the great information. In our experience banks may finance on mobile homes in parks and on private land that are substantially older than 10 years old. I do not recommend you (as the investor) go through banks to purchase however this can be an exit strategy if you do know what local banks or credit unions will lend on before you invest in any mobile home. With that said selling with payments, or for cash, or renting can be the most popular exit strategies for investors. Pre 1980 mobile homes are built to a less quality standard than new model homes however like you and I know older mobile homes can look nicer than their newer model home counterpart as long as the owner keeps the home in good shape. Pride of ownership and a proper inspection has much to do when deciding on one of these older units as a first deal. The wind issue is not one of the major concerns in most areas. If there is value to create with a motivated seller the high wind area is one of less concern than other issues. Good call on the roof issue however in our businesses that is not a make or break issue if there is value to create. Keep up the great work. Thanks again for commenting and for reading. All the best, John Fedro
    Replied over 6 years ago
    Great info John and James, thank you.
    Replied over 6 years ago
    Happy to help Thai. Thanks for commenting and reading along. All the best, John Fedro
    Jeff Shipp
    Replied over 6 years ago
    Hi John I’m new to real estate investing never thought of mobil homes kind of a bad name for them 30 years ago I lived in one not a good experience. with that said if there is a way to make money then I need to look into it .( as long as it is a win win that is a must for me ) I leave in MICH very bad winters that are hard on mobil homes should I look in MICH or only in warm weather areas . also what do you think about 55 or older parks are they better or target young . thanks for making me think outside the box one never knows Jeff.
    John Fedro
    Replied over 6 years ago
    Hi Jeff, Thanks for commenting and reading along. I am very glad to hear you re-reconsidering mobile homes as investments. I would strongly advise you invest in your local area to get started. If you travel south for the winters then invest down south as well. Mobile homes in all areas of the country can be kept in good condition or poor condition depending how they are cared for by their owners. Aim to purchase nice clean homes from sellers that need you help to sell. I couldn’t agree with you more about the win-win scenario. I would also suggest you start by investing in family style parks. There is money to be made in senior type parks however start with family parks while you are learning this business. Hope this helps and makes some sense. if you have any follow up questions don’t hesitate to ask. All the best, John Fedro
    Replied about 6 years ago
    Hi, I live in florida and like to know how do I find the mobile home market value?
    Deanna Opgenort Rental Property Investor from San Diego, CA
    Replied almost 6 years ago
    I would say that size DOES matter when it comes to a rental, if only because of the emotional appeal. For families with kids 900ft vs 1800 sqft is a big, big difference in the sanity level for parents, especially where winters are cold. Costs more to heat and repair, but peace and quiet because the kids are at the other end of the house? PRICELESS! The double-wides also seem to use the square footage more efficiently — less space wasted in hallways.