House or mobile home. Which is the better investment?

House or mobile home. Which is the better investment?

Member since 2019 · 9 posts · 1 vote

Which is a better investment buying a home to fix up and rent or buying a mobile home or trailer to fix up and rent?

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Real Estate Investor · Ste. Genevieve, MO · Member since 2009 · 363 posts · 944 votes
7y

It's apples to oranges as there's no way you can buy a single-family home for as little as you can buy a mobile home. Some of the homes in our park sell for as little as $2,000, while the median home in the U.S. is $200,000. Of course, the entire investment concept is hugely different. The stick-built home is "real property" so it appreciates in tandem with the overall market, while mobile homes are "personal property" so they do not typically appreciate unless the market is extremely hot. But the money in the mobile home investment is strictly about cash flow, not appreciation.

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  • Real Estate Investor · Ste. Genevieve, MO · Member since 2009 · 363 posts · 944 votes
    7y

    It's apples to oranges as there's no way you can buy a single-family home for as little as you can buy a mobile home. Some of the homes in our park sell for as little as $2,000, while the median home in the U.S. is $200,000. Of course, the entire investment concept is hugely different. The stick-built home is "real property" so it appreciates in tandem with the overall market, while mobile homes are "personal property" so they do not typically appreciate unless the market is extremely hot. But the money in the mobile home investment is strictly about cash flow, not appreciation.

  • Lender · Charlotte, NC · Member since 2016 · 371 posts · 172 votes
    7y
    Originally posted by @Frank Rolfe:

    It's apples to oranges as there's no way you can buy a single-family home for as little as you can buy a mobile home. Some of the homes in our park sell for as little as $2,000, while the median home in the U.S. is $200,000. Of course, the entire investment concept is hugely different. The stick-built home is "real property" so it appreciates in tandem with the overall market, while mobile homes are "personal property" so they do not typically appreciate unless the market is extremely hot. But the money in the mobile home investment is strictly about cash flow, not appreciation.

    The mobile home is personal property if it is not deeded with the land.  If title is surrendered and home deeded to property, it becomes real property and the home would appreciate in value in an appreciated market.  

  • San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    7y

    @Beverly Bowman Both are good investments if done right. Investing in mobile homes allows you to get into a smaller deal than your traditional single-family home. It also allows you to specialize in a niche most real estate investors don't pursue. In the end, it's up to you and your comfort level. Hope that helps! 

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