Is this unorthodox, or common?

5 Replies

Hello BP peeps,

I don’t know much about mobile home buying and selling. I’ve listened to all the podcasts and have heard several of them when they focus on mobile homes, but I don’t recall any of them mentioning my question.

Does anyone have experience with or heard of anyone buying a mobile home, moving it to another lot, and then selling it to an end buyer? Most of the times I’ve heard of just involve buying it and selling it in a flipping manner, or wholesaling it. I’m wondering if people do all the front end work of buying and moving before selling the home, or if that’s not a common thing people do.

The deal that made me think of this is a mobile home for sale with a contingency written into the contract requiring the home to be moved upon purchase. My thought was, as an investor, I could purchase the mobile home, move it to a park where there are some good comps, then sell it to an end buyer in said park.

The details:

Price of mobile home: $7000
Estimate of the move: $5000 (40 miles)
Estimate of the set up: $5000
Misc. costs (axle repair, new tires, new tow tongue, holding costs once at new park, etc.): $3000

Total cost: $20,000
Comps: $30,000

All these numbers are pretty conservative and taken from other forums and websites regarding the cost to move a mobile home. I’m sure there are other costs I haven’t thought of, and would love any extra input here. Maybe there are some regulations on the park side of things with like older homes moving in? What would the upfront costs be on the park side for the move in? I’m sure it costs some lump sum amount before the monthly fee of parking it there.

Any and all comments are greatly appreciated.

@Ben Winchester , I can see why this isn't a regularly discussed "thing". Why? Because it's no different than any other buy-for-one-price, sell-for-a-higher-price idea.

The same concept applies to all of them: do your homework, then pay your money, or, not. 

[Yes, I know your post is part of that homework]. Good luck...

I don't have any experience in doing what you propose but the 30k resale sounds high to me.  

@Brent Coombs Thanks for the response. BP locked me out because I posted my same forum post twice on accident. The app still needs a lot of work. Anyway, after I posted this I started to have the same realization you mention here. It is essentially buy one thing and then turn around and sell it for a profit. It doesn't really matter if people have done it before as long as I do my homework, I shouldn't base my whole decision on whether or not someone else has done this before. There is security in knowing someone else has done it before, but even if they haven't, it could still be done as long as the numbers work.

@Thomas Leonard $30k for mobile homes in my county is on the extreme low end. There are mobile homes that are slightly bigger than the one I saw (1900 sq/ft compared to 1200 sq/ft maybe more than "slightly") and much older (built in 1920 compared to 1970) going for for $50k-$70k. The conditions of both appear to be equal but that is just based on pictures. It truly is crazy how much mobile homes are selling for in my area, I've even seen some sell for more than $100k.

Originally posted by @Ben Winchester :

@Brent Coombs Thanks for the response. BP locked me out because I posted my same forum post twice on accident. The app still needs a lot of work. Anyway, after I posted this I started to have the same realization you mention here. It is essentially buy one thing and then turn around and sell it for a profit. It doesn't really matter if people have done it before as long as I do my homework, I shouldn't base my whole decision on whether or not someone else has done this before. There is security in knowing someone else has done it before, but even if they haven't, it could still be done as long as the numbers work.

@Thomas Leonard $30k for mobile homes in my county is on the extreme low end. There are mobile homes that are slightly bigger than the one I saw (1900 sq/ft compared to 1200 sq/ft maybe more than "slightly") and much older (built in 1920 compared to 1970) going for for $50k-$70k. The conditions of both appear to be equal but that is just based on pictures. It truly is crazy how much mobile homes are selling for in my area, I've even seen some sell for more than $100k.

 Are there lots available to rent in the parks where mobiles are selling for 100k?

@Michael Plante that’s a great question and I’m not sure.. I haven’t done an extensive search for rentals in those types of parks, from my surface searches I have not seen any units available for rent. I actually haven’t seen any spaces available in those types of parks. I’d probably put them in the B+ to A category in the mobile home park genre. The average price is more around the $40k-$60k on the C or B- category. The $100k homes for sale are usually a much nicer area which is probably the cause for the extra cost.

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