Mobile Homes

5 Creative, Profitable Ways to Increase a Mobile Home’s Value

Expertise: Personal Development, Real Estate Investing Basics, Business Management, Mobile Homes, Real Estate News & Commentary, Landlording & Rental Properties, Mortgages & Creative Financing, Real Estate Marketing
223 Articles Written
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Last week I was able to respond to a mobile home investing question that read, “Am I able to purchase a mobile home that needs repairs and resell the home for a profit without making any of the repairs on the home before reselling?”

The short answer is “Yes;” however, let us dive deeper into this question/answer to find out why this is and how value is created with regard to mobile homes.

First thing to make sure we all understand is that in order to grow a long-term investing business with great word-of-mouth advertising, we need to resell only win-win mobile home deals. This means that although the condition of the mobile home may not be 5 out of 5 stars, the price and terms are affordable and very attractive to the end user. In no situations should an investor omit known repairs needed or fool a buyer into buying a misrepresented mobile home. Now that we are in agreement, let’s move forward.

5 Creative, Profitable Ways to Increase a Mobile Home’s Value

1. Buy, Fix and Flip

Perhaps the most commonly thought of method to increase price is to increase the value via repairs and sweat equity. If a mobile home is worth $5,000 with repairs needed, then surely making some or all of the needed repairs will justify a higher retail price once completed. This is the most common method of increasing value that investors understand.

Related: The Abandoned Mobile Home Process: How to Obtain the Title

But what other ways are there to increase value of a mobile home?

2. Move the Home to a Better Location

If the mobile home is inside of a park and the costs to move the mobile home fits into your deal figures, this is a very valid way to increase value of the mobile home. Perhaps you are moving the mobile home from a rundown park to a 5-star park, or perhaps you are moving the mobile home from an inland small town park to a bustling oceanside park. Both of these moves will typically create a higher resale demand and therefore a higher resale value, equaling profit for you.

3. Add More Homes to the Land if Possible

If you own a mobile home on land, then perhaps the zoning of the land and the size of the parcel allows for additional mobile homes to be a added to the property. In many cases this can increase resale value and cash flow potential from the parcel.

4. Sell Via Payments

When buyers cannot or will not turn to banks or credit unions to finance their new/used mobile home purchase, then selling via payments* can increase the purchase price of a mobile home out of sheer necessity for the buyer. Said another way, no matter how you purchase a mobile home when you resell the home for monthly payments, you increase the amount of buyers interested in the home. This increase in demand will typically increase price, in addition to charging a premium for this service.

*Selling on payments is a vague term that includes lease options, rent to own programs, owner financing, and other methods. Some of these methods are frowned upon and others illegal in many areas due to new laws and acts. Selling via payment is still possible; however, please make sure to follow all laws and rules when selling via payments or terms of any kind.

5. Find the Right Properties

If you were paying attention, you may have realized that we really have not discussed the original question’s answer yet. Can we buy and resell a mobile home without making any improvements to the home? Yes, and this answer stems from the act of finding and securing (purchasing or obtaining a signed purchase contract) the subject mobile home before any other buyer or investor.

As investors, much of our job is to attract, find, negotiate, and secure a “profitable” mobile home typically undervalue from the retail price. Realize that once you find and buy a mobile home below value that you have captured some profit immediately.

Let us look at this another way. Perhaps you know you can resell a fixed 3/2 mobile home in a park for $20,000 with payments. If and when you find a seller who will sell their handyman 3/2 mobile home for $4,000 cash today, you make an offer of $4,000, and the offer is accepted. Once you own the home, you may now resell in an as-is condition for a higher price if possible.

Related: 4 Steps Every Investor Should Take After Closing on a Mobile Home

Selling for cash may be difficult, as the seller was already trying to sell for cash, so you will need to market better than the previous seller in order to sell to a higher bidder. If you rehab the home slightly or all the way, you can increase the price. If you resell for monthly payments, you will increase the value and therefore increase the price. However, if you truly did buy the home at the right price, and only a handful of repairs are needed, you can fast-turn the home or even wholesale the contract to a buyer for a higher price than you paid without making any need repairs.

Conclusion

We can talk about this for days, so if you have any questions, comment them below, private message me on BiggerPockets, or email me personally for fastest reply. As mobile home investors, it is important that our reputations speak for themselves. By investing correctly and with daily consistent effort, profit is very possible; however, this is only possible with a correct understanding of your market and win-win-win deals.

As always… love what you do daily.

Mobile home investors: How do you profit off of your properties? 

Leave me a comment below, and let’s talk!

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Investing since 2002, John started in real estate accidentally with a 4-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. John shares his stories, experiences, lessons, and some of the stories of other successful mobile home investors he helps on his blog and YouTube channeland has written over 300 articles concerning mobile homes and mobile home investing for the BiggerPockets Blog. He has also been a featured podcast guest here and on 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.

    Bill Neves Flipper/Rehabber from Vancouver, WA
    Replied over 4 years ago
    Good article as always, John. All good stuff!
    Gordon Eisenberg
    Replied over 4 years ago
    I bought a brand new 2014 mobile home at a greatly reduced price (about $15k less than dealer list) & will move this onto my own land parcel in a trailer park with water and electric hook ups. The trailer will be brand new on its own land (without lot rent). What would be the best way to market my property? Another option I would consider doing is owner financing if the rent to own buyer was to put down 10% of the purchase price. Your thoughts would be greatly appreciated.
    Marvina Skaf from Stone Mountain, Georgia
    Replied over 4 years ago
    This is great information, Thank you Reply Report comment
    Marvina Skaf from Stone Mountain, Georgia
    Replied over 4 years ago
    This is great information, Thank you
    Delores Lyon
    Replied over 4 years ago
    I agree that flipping a mobile home could be a great way to increase its value dramatically. You need to make sure the property you are selling is one that people would want to have. I would also suggest making a lot of little improvements that you can list on your ad for the property. Reply Report comment
    Delores Lyon
    Replied over 4 years ago
    I agree that flipping a mobile home could be a great way to increase its value dramatically. You need to make sure the property you are selling is one that people would want to have. I would also suggest making a lot of little improvements that you can list on your ad for the property.
    Delores Lyon
    Replied over 4 years ago
    I agree that flipping a mobile home could be a great way to increase its value dramatically. You need to make sure the property you are selling is one that people would want to have. I would also suggest making a lot of little improvements that you can list on your ad for the property.
    Ron Vasquez from Valley Springs, California
    Replied almost 4 years ago
    Thanks. There is so much good information here. Most of the time, when I have a question, it’s usually answered if I just keep reading. I’m concerned with the bones or the structure of the home. The stuff you can’t see. Do these homes go through inspection before you buy them? And how much does it typically cost? Should I negotiate that in the price?