The Mobile Home Perimeter Zone

3 min read
John Fedro

John Fedro has been actively investing in individual mobile homes since 2002 and in parks since 2016. Additionally, he’s been assisting other mobile home investors since 2006.

Experience
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 his cash-flowing portfolio. Since these early years, John has gone on to help 150+ sellers and buyers sell their unwanted mobile homes and obtain a safe and affordable manufactured home of their own.

Years later, John keeps to what has been successful—buying, fixing, renting, and reselling affordable housing known as mobile homes. Like almost every long-term investor, he’s made more mistakes than he can count. John discusses many of them on his blog and YouTube channel, where he shares his stories, experiences, lessons, and some of the experiences of other successful mobile home investors that he’s helped.

John has written over 300 articles concerning mobile homes and mobile home investing for the BiggerPockets Blog. He has also been a featured podcast guest on BiggerPockets and other prominent real estate podcasts, authored a highly-rated book aimed at increasing the happiness/satisfaction of average real estate investors, and spoken to national and international audiences concerning the opportunities and practicality of successfully investing in mobile homes.

John now spends his time actively investing in individual mobile homes and acquiring parks. He focuses on enjoying his time and partnering with other investors around the country to grow their own local mobile home cash-flowing portfolios and reputations.

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Welcome back,

In almost every city in America you will find some supply of mobile homes.

These mobile homes and manufactured homes can be located inside preexisting parks and attached to private land the owner of the mobile home also owns. In many cities the highest density of these factory built homes are concentrated outside of the downtown areas. In fact traveling outside your city limits can afford you some great opportunities for investments.

Below is a quick common-sense grouping of most towns and cities around the country. Please keep in mind that this in no-way relates to every city or town nationwide.

Instead this is simply a guide to help you understand why and where some mobile homes will be located in your area. Imagine each of the “zones” below expands in a 360 degree radius around your city.

Downtown:

In most cities and towns the and highest use of this land is not going to be a mobile home park.

Downtown land typically holds high priced real estate, commercial buildings, downtown condos, apartments, nightlife, shopping, and bars. It is for this reason that any mobile home parks that were located downtown have already sold-out and are no longer there. In short there will not likely be a good supply of mobile homes located downtown in most cities.

Related: It’s Not Just “Location! Location! Location!”

Outside of Downtown:

Once you start to travel a few miles outside of downtown you often reach more residential type of housing.

In many areas surrounding a downtown you may likely find newly improved/rehabbed areas, older built homes, and even slums. Depending on the land value and population you will likely find a few mobile home communities or neighborhoods around this area.

Most mobile home parks in this zone will have higher priced lot rents due to the proximity to the city. The supply of motivated sellers will typically be low here as this is a highly desired area in most cases and buyers will be ready to pounce on most seller homes.

Even Further Outside of Downtown, but Still in the City Limits:

This is the zone around your city that will start to hold more and more mobile home parks and neighborhoods.

Typically called the suburbs, land value is reduced thereby making park ownership profitable and feasible for park owners. In addition, for us mobile home investors we will find a lower lot rent payment monthly, typically a lower demand of cash buyers, longer “on the market” time, and a lower selling price compared to similar mobile homes located closer to the city. This will typically be a good area for deals as the supply is higher than closer to downtown.

Outside of the City Limits:

You will discover similar findings here as the previous zone. This zone is very profitable too.

Related: Going the Distance: Should You Invest in Out of Town Real Estate?

“Out in the Sticks”:

This area is more a subjective zone than a definitive land area.

I like to class this zone as when single family homes come with acres of land versus a small subdivision-sized lot. When you get into these areas you will find the occasional mobile home park here and there. In these parks the lot rent monthly will be drastically lower than any parks closer to town.

Additionally, these parks may contain older homes in rougher condition. The buyer demand for this area will be lower than closer to town. The buyers in these areas will be attracted to the nature-type of “country living”.

Nearby Cities:

Depending on which navigational direction you leave from your city’s downtown and drive straight you may find yourself in a neighboring city instead of a country setting.

I make this reference to make sure you understand that each area is unique and only by being in the streets can you determine you own investing turf.

In conclusion know that you should become the local authority and expert in your own county (or parish) and the surround counties as well. Know what is for sale nearby and beyond the “out in the stick” zone. Only by understanding what all is for sale can you have the clarity to focus on any specific homes and sellers to help create value with. Aim to help everyone but only more forward with the most profitable and easy to sell homes.

In the next article we’ll be discussing what make for a “good” deal while mobile home investing.

Love what you do daily,
John Fedro

Welcome back, In almost every city in America you will find some supply of mobile homes. These mobile homes and manufactured homes can be located inside preexisting parks and attached […]