Risks of investing in mobile homes?

Question

I have a mobile home owner very motivated to sell, asking 50k comps are at 110k no major cosmetic repairs needed. The numbers look like they can make sense as a quick flip, or even a potential buy and hold, but I'm aware mobile homes typically depreciate(?) and is a whole different "Industry" than single fam/multi fam property investing. What are the risks I should know about? Or is this a deal anybody would take as a quick flip?

Justin Tahilramani · Answer

@Janene Tompkins - that isn't always true. In NC most single wides are not considered residential real estate regardless of the foundation. Double wides are different.

Nathaniel Ortiz · Answer

I found it was not worth the investment as for yes you are all correct on pointing out the land was not included, therefore not making sense to flip. Also discovered prices for brand new mobile homes with same specs at the same wholesale price I would've paid. Thank you all for the advice!

Rachel H. · Answer

@Nathaniel Ortiz Is it for the home only (as personal property) or both the mobile home and land together (as real property)? This will determine the value. Good luck!

Janene Tompkins · Answer

Is your deal just for the home or is land included? If land is included and the home is on a permanent foundation, it becomes a real estate transaction and not considered chattel property. Then the home has a better chance to retain its value. And may even appreciate b/c of the dirt underneath it.

Rachel H. · Answer

@Oren Klein You may want to try Foremost. Hope that helps!

Oren Klein · Answer

Does anyone have a good property insurance carrier for mobile homes? They are very hard to insure, if not on attached to a permanent foundation as indicated above.  Even those attached to the permanent foundation seem to be an issue with some.

Janene Tompkins · Answer

Yes I do! Let’s chat!

Justin Tahilramani · Answer

@Janene Tompkins - do you invest outside of RDU area? I am pretty involved in the Fayetteville market - would love to connect.

Janene Tompkins · Answer

@Justin Tahilramani thanks for clarifying!

Risks of investing in mobile homes?

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