Adding manufacture homes to raw land

[Austin Ralls]

I am looking at adding a new strategy to my investing portfolio and have been looking for eco friendly ideas. I'm curious how much value increases on raw land if I place a manufacture home on it in the midwest region. 

I live in oklahoma where there are tons of raw land opportunities that I could snatch up and place a manufacture home on a 1/2-1 acre lot and flip it or rent it out. 

What has everyone else that does this seen? Is there room for a profit in this scenario or is this more of a long term game and renting the better route to take on this specific strategy? 

[Cooper Raines]

Hard for me to get to specific as I'm not super familar with the market in your area however one thing I'd say is also take a look at modular homes as there is a fairly significant difference between a modular home and a manufactured home. If your plan is to sell it, generally it is a bit tougher for buyers to get financing to purchase a manufactured home than it is to purchase a modular. Not impossible by any means, but tougher. Often times when people put manufactured home on lots they sell the manufactured home itself but keep the land and rent the land to the home owner. 

You'll want to look at what utilities are available to the lot. If you have to pay to run power to the lot for example, the cost to run that power is the same whether you put a manufacture home or a custom 3000 sq ft home. You'll want to be sure your sales price - your land development costs leave enough net profit for it to make sense. Another thing I would double check is the zoning and/or any restrictions that may effect the lot as some don't allow manufactured homes. Hope that helps, best of luck 

[Rachel H.]

@Austin Ralls If you're going to go this route, it's usually a safer bet to do it around land parcels that around have mobile homes on them versus those that do not. 

It may be a good idea to drive the areas you're interested in buying to see if you can locate any parcels of land around areas with mobile homes already on them. 

Hope that helps! 

[Jacob Sherman]

Can definitely get no income no doc construction loans that would allow for it