Anyone else flipping new mobile homes on land?

Question

Hard to find mobile home posts not in the 'park" forums. 3 years ago I transitioned from SFRs to mobile only. Rehabs but mostly demoing old homes and replacing them with new or developing raw land for new homes. Typically in GA my ARVs are 250-300k, usually around 30% ARV in total profit after all soft cost including financing. Even when interest rates went up I had to drop the prices on all my SFRs listed, but literally raised price on each mobile home.

Anyone else using this model with success besides @Erin Church ?

Joey C. · Answer

@Robert E Bogino any additional advice on what to look for in a manufactured home? I'm looking at a property built prior to 1976 and it is on an 8 point foundation. Do you feel this is something an end buyer can find financing for?  How do  you determine if the property was converted to real property?

Jeff Tumbarello · Answer

Our exit is to cash buyers. We also hold them as well. There is a group of us from Florida, we have about 90 doors in the area collectively.

We will either buy land and bring the mobile in or buy and rehab. Down for whatever as long as it makes sense in a spreadsheet.

Erin Church · Answer

Quite helpful! I didn't know that Clayton did financing for investors. I'll have to dig into that. I actually have my SC manufactured home dealers license so that I can "deal in" more than 3 MH in a 12 month timespan (it's crazy how low the threshold is to need a license) and chatted with Clayton, but didn't think to find out about the financing options. :)

Rachel H. · Answer

They've done both. With the new ones, usually the older ones on the land or in the park (if in a community) just take too much work to fix up. Some go the new home route especially since Clayton has a financing program for investors who want to buy new ones.

Sometimes, it just takes too long for others to find used ones to replace the old ones. I'm finding a lot of investors going the new home route lately. I think it's because the financing is available and they're thinking long term.

Hope that helps!

Joey C. · Answer

@Robert E Bogino I appreciate the reply. This is very helpful

Robert E Bogino · Answer

Rachel lets get the powers that be to make us a forum for mobiles on land!  I haven't personally rented out a new one.  Might be more cost effective to do single wides for rent.  And @Erin Church and I have done some fixer upper owner financing deals.  Even sub to wraps.  You could easily be over the 1% rental rule on a brand new house.

Andy Bauman · Answer

@Erin Church - Thanks.  That is interesting, I have not heard of the city/county not allowing to tap into existing sewer connections for a mobile home.

@Robert E Bogino - Thanks.  Starting with the end (sales price) also makes a lot of sense.

I think the hardest part will be finding land that is affordable that I can do this with; ideally something I can subdivide into smaller parcels and finance along with the home on the land.

Robert E Bogino · Answer

As @Erin Church said zoning is a part of it.  Easiest method to start is to look on MLS or Zillow for areas of sold mobile homes close to each other.  So a neighborhood of mostly mobile homes.  That should give you an easy star of know where one can go.  Of course you need to verify and then ask what requirements are need such as square footage, roof pitch, foundation type etc.   This will help  you know if it is actually cost affective to do it on your market.

Andy Bauman · Answer

I have not done this yet, but it is my list to tackle next.  Would you mind sharing a few pointers with me on what to look out for?

Anyone else flipping new mobile homes on land?

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