Putting Multiple Mobile homes on subdivided lot

[Jason Blanton]

I've been trying to find creative ways to invest in my area.

Please feel free to share experience or thoughts!

I'm wondering if anyone has done something similar to this example. 

Purchase and subdivide a very inexpensive, improved 1+- acre lot into three, .33+- acre lots and put three mobile/manufactured homes and either rented or sold those homes. (Not starting a mobile home park)

I am looking in a rural small town where I believe the city would be willing to subdivide the lot and improve the area. (This city is in need of more affordable housing options and anything less than 200k sells immediately. Rent is in strong demand as well.)

Lots with teardown worthy houses can be bought for less than 20k with an acre+- in these areas. 

Let me know if this is something you have done, something you have read about, etc!

[Curt Smith]

The county zoning regs controls everything you might consider doing on a property.  No owner is free to do what ever you want,,, well except for much of TX etc.  Most other areas have zoning you have to check into at the co permit/building/zoning office.  Best go in person.  Co folks aren't good at answerkng their phones.

FWIW and FYI in many counties in GA the counties hate mobile homes so much, and I bet in your co too, that they inact restrictions that min lot size is 2 acers.  LOL yes 2 whole acres for one double wide.  FWIW we bought some 18 double wides titled on their own land during the foreclosure years for very little, $25k +/-, for a 1200++ sqft 3/2 home on land.  New ac, fixup, $10k later we'd rent for $875 back then, rent to own, now everyone either was sold for cash to dump them because we didn't know the county was a jobs dog no jobs = no rent = evictions = dump for about what we had into it to local investors.  Others we sold on notes and then contract for deeds as a way to keep income but NOT the maintenance hassel/costs.

You mention and often repeated here and elsewhere idea of loading up a lot with mobile homes for cheap rentals.  Many many problems, least of which is sewer or septic.  The soil has to "pert test" and each lot has to have enought land (zoning provided) to hold a septic field line large enought for your number of bedrooms each.

From my time owning a mobile home park, 70 pads,  I learned that the costs of septic, power, water, moving a home ($5k to $10k just to move a single wide / double wide) can amount to $30k PER LOT not including the MH.   New single wides, 3/2, are $25k to $45k for basic models.  Used bought from craigslist usually out of parks or off owners land as they upgrade to stick built home may be $5k to $10k.  They will be asking alot more, just say, "hey would you take $5k cash?  then be quiet.  Repeat the offer a few times.  THat is if used homes are even available.   We moved some 16 mobile homes into our park that was licensed / permitted by the county for 70 MHs, where when we bought it only had 50.. So we took on alot of short term debt to fininance the water, water meters, power, septic systems, moving the homes, oh BTW the pad the MH sits on is not free and has to follow county/state regs.  Some states need poured cement pads...

You need to talk to local co' officials.  I'm sorry to say I'll bet $10 your county has all sorts of regs against you doing this.  They hate all forms of mobile homes even thought they are low income housing.  The police and local schools hate the costs to support MH parks or these mini-parks!   You have to have owned MHs, and parks, to appreciate the problems.   It sounds like a cheap plan, in my view buying SFRs in small towns is the smarter focusing of funds.   

Read the paper linked off my BP profile;  bullet proof rental portfolio.  Best of luck.