Thoughts on buy and hold manufactured homes?

Question

Hi, I’m seeing several manufactured homes that may appear to need little rehab and are generally in good-ok areas. Any thoughts or experience with mobile homes using a buy and hold strategy to generate rental income?

Jerry Lucker · Answer

@Steven C Hazel

Mobile homes don’t appreciate like stick built homes do. It doesn’t make any difference when flipping as the home is usually held for around 90 days. Buying the home right and fixing it up adds plenty of value to resell.

As buy and hold, appreciation doesn’t affect my business model. I rent the home for several years (or forever) and/or sell it and carry the contract. Based on the original purchase price I make bank without appreciation to worry about.

Jerry Lucker · Answer

@Raychel Raymer

Mobiles make good rentals if they are on their own land. Generally mobiles in parks have to be owner occupied and can’t be rentals.

Flipping mobile homes in parks for quick cash can also be very profitable. I’ve done it for 20 years and have been able to purchase several rentals with the cash generated.

Dax Oglesby · Answer

One way around the owner occupied as they can't be rentals is through owner financing. If you do it that way all of the responsibility of the tenant/owner falls squarely on them. This way you will get the monthly income.

Steven C Hazel · Answer

Do they appreciate like a house does?    Are the processes and metrics different for mobile homes?  I have a lot of these in my area. I assumed they weren't profitable so I'm happy to hear this.

Raychel Raymer · Answer

@Jerry Lucker thank you! That’s very helpful

Thoughts on buy and hold manufactured homes?

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