Should I Invest In Mobile Home Singlewides Or Doublewides?
As an active mobile home investor, you will absolutely be talking to motivated mobile home sellers who own all sizes of mobile homes and manufactured homes. Some of these mobile homes will be considered singlewides, and others will be considered doublewides. Whether singlewide or doublewide, both of these sizes of mobile homes may be very profitable and in high demand by local buyers.
Singlewide mobile homes are built no bigger than 18 feet wide and 90 feet long, with many singlewides you see running an average of 14′ x 60′. Doublewide mobile homes on average are less than 40 feet wide and less than 90 feet long. Many doublewides you see may have an average dimension of 24′ x 60′.
Through what research is available online and personally investing in mobile homes around the country, there absolutely seem to be more singlewide mobile homes in existence than doublewide homes — by a ratio of 3:1 in many areas. Likewise, there seem to be more 2-bedroom singlewides compared to 3-bedroom singlewides.
Disclaimer: The terms “mobile home” and “manufactured home” are being used interchangeably in this article. This is common not only throughout this article but throughout the real world with regard to mobile home investing. In reality, the term “manufactured home” is the verbiage used to describe most factory built housing constructed after 1976.
Demand changes as the purchasing opportunity changes. Larger cities may have more buying demand compared to smaller cities simply due to the increased number of people nearby looking for a new/used affordable home. Depending on whether you are selling this investment mobile home to an end user via an all cash sale or via monthly payments, the demand from buyers will change in most areas from singlewide to doublewide. Here’s how.
- Selling via All-Cash or Bank Financing: When selling a mobile home to an all-cash buyer or a bank financed buyer, you will be competing against many other mobile home sellers in the area also looking for an all-cash sale. If your mobile home is prettier and larger than the competition, your home will typically be purchased first, assuming the price is comparable. When selling for all-cash or bank financing, the bigger and more spacious home typically sells first (assuming the comparable location and park are relatively equal). In short, doublewides are more popular with a cash or bank-financed buyers. Bigger = Better.
- Selling via Monthly Payments: With regard to selling used mobile homes via monthly payments, there is little difference with the purchasing demand from buyers when you are selling a singlewide mobile home versus a doublewide mobile home. The reason for this is simple — the attractiveness of the seller financing supersedes the need for a slightly more spacious home from buyers. In short, doublewides and singlewides are nearly equally popular when selling via monthly payments.
Doublewide manufactured homes typically have double the square feet as compared to singlewide mobile homes. This means that there may be double the amount of rehabs needed with a doublewide mobile home versus a singlewide mobile home. More repairs needed inside the home on the floor, and more repairs needed outside of the home on the roof. The floor and roof of mobile homes are two costly areas to look for water stains, leaks, and damages.
Singlewide mobile homes will typically cost less than half the amount to move and set up compared to a doublewide mobile home. Singlewide mobile homes will be moved as one complete unit in most cases, whereas doublewide mobile homes are typically transported in two separate halves once separated. These two halves must then be joined/reconnected at the home’s new location.
Pro Tip: Always, always, always hire a mobile home transporting company that comes with high recommendations and referrals. Aim to asked local mobile home park managers who they refer and trust to move in their mobile homes locally.
Mindset as a Mobile Home Investor
There is nothing inherently good or bad with a singlewide mobile home versus a doublewide mobile home. Both homes/deals may or may not be attractive to purchase. As active mobile home investors, we are looking to be both proactive and reactive to help local mobile home sellers and buyers. Aim to keep an open mind when speaking to local mobile home sellers and create a few offers to help sellers move on with their lives. Take into account all repairs, park approval processes, location, local market conditions, time of the year, age of the home, size, bedrooms, and more before making any purchase offers to any sellers.
Mindset as a Park Owner
From the perspective of a mobile home park owner, your community only has so much land and so many places to put mobile homes. A doublewide mobile home will cost double to purchase and move, plus consume double the amount of land as a singlewide. Still, they only typically generate the same amount in lot rent fees compared to a smaller singlewide. Even worse, a park owner may need to reduce the number of mobile home spaces if doublewides encroach onto their neighbors’ pads. While doublewide mobile homes often may look more similar to single-family homes, there are always positives and negatives when adding larger homes to your community.
In conclusion, there is a buyer for most mobile homes you purchase. However, if you’re not investing correctly, it can be easy to lose money and sacrifice profits. Remember that any mobile home you aim to resell should be attractive to a good section of society, as opposed to only a small handful of buyers, when reselling a mobile home. Before making purchase offers to sellers, know what local buyers will pay for any property you intend to invest in. Always know exactly what you are investing in before you purchase any home, and enter into every real estate transaction with clarity and understanding.
Mobile home investors: Do you buy singlewides or doublewides? Why?
Let me know with a comment!