Interested in investing

San Antonio, Texas
Mobile Home Park Investing
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Interested in investing

Nadene Long
Member since 2026 · 2 posts · 4 votes

I have experience flipping houses and currently own a small portfolio of rental properties, but I’m considering a pivot into mobile homes.

I have access to distressed mobile homes that can be purchased for $1,000–$10,000. A deal I’m evaluating would look something like this:

Purchase: $5,000
Rehab: $25,000
All-in: $30,000
Rent: $1,500/month
Lot rent: $785/month

I would likely use a HELOC at around 5% to fund the purchase and rehab.

For those experienced in mobile homes:

  • Does this model make sense when you don’t own the land?
  • Would you use a HELOC for this type of investment?
  • If your long-term goal was to own a small mobile home park or affordable housing community, would you start by acquiring homes or focus on acquiring land first?

I’d appreciate any insights from those who have successfully made the transition into mobile homes.

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Roger D Jones
Member since 2023 · 178 posts · 122 votes
3mo

Following up with a bit more time.  I own several mobile home parks with a dozen or so POHs and these numbers are missing some key elements.

Taxes and insurance, rising lot rents that you will have zero control over and on going maintenance along with tying up your HELOC at 5% will consume whatever reasonable income you will generate. Furthermore your investing in a depreciating asset you will never get your money back on. A 5k trailer is a 5k trailer and even with a 25k dress on a pig there is no salvation. You start dropping 8k on a new roof or 4k on soft floors and water leaks you will never get on the right side of this deal. I have investors in my parks that have done this and they all say the same thing- I never should have done it.

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  • Roger D Jones
    Member since 2023 · 178 posts · 122 votes
    4mo

    No way.  Hopefully you are a real person and not a BP bot trying to generate responses you will be able to run away from this deal and not look back.

    0Reply
  • G. Brian DavisPro Member
    Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 877 votes
    4mo

    The numbers look good, but lot rent is the biggest risk. A HELOC can work if you can cover vacancies.For a park or portfolio goal, start with homes to learn the business, then consider land later.

    0Reply
  • Jason Roberts
    Real Estate Consultant · Usa · Member since 2024 · 27 posts · 9 votes
    3mo

    Not owning the land is similar to buying a condo as a rental and dealing with the HOA fee. Can it work..sure. There is a better strategy for mobile homes in parks. Message me if you need help.

    1Reply
  • Roger D Jones
    Member since 2023 · 178 posts · 122 votes
    3mo

    Following up with a bit more time.  I own several mobile home parks with a dozen or so POHs and these numbers are missing some key elements.

    Taxes and insurance, rising lot rents that you will have zero control over and on going maintenance along with tying up your HELOC at 5% will consume whatever reasonable income you will generate. Furthermore your investing in a depreciating asset you will never get your money back on. A 5k trailer is a 5k trailer and even with a 25k dress on a pig there is no salvation. You start dropping 8k on a new roof or 4k on soft floors and water leaks you will never get on the right side of this deal. I have investors in my parks that have done this and they all say the same thing- I never should have done it.

    3Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3mo

    I would never do this. You are basically seller financing a car at the end of the day and if they stop paying you are still stuck with lot rent etc. Way to much risk imho

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  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 1k+ posts · 652 votes
    3mo

    That model can work, but not owning the land adds risk since lot rent can go up or tenants can be asked to leave. Using a HELOC is fine for a small start, but make sure your cash flow comfortably covers payments and surprises. If your long-term goal is a park, I'd usually start looking at land options early, but you can begin building experience with homes first while learning the market and management side.

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  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    3mo
    Quote from @Nadene Long:

    I have experience flipping houses and currently own a small portfolio of rental properties, but I’m considering a pivot into mobile homes.

    I have access to distressed mobile homes that can be purchased for $1,000–$10,000. A deal I’m evaluating would look something like this:

    Purchase: $5,000
    Rehab: $25,000
    All-in: $30,000
    Rent: $1,500/month
    Lot rent: $785/month

    I would likely use a HELOC at around 5% to fund the purchase and rehab.

    For those experienced in mobile homes:

    • Does this model make sense when you don’t own the land?
    • Would you use a HELOC for this type of investment?
    • If your long-term goal was to own a small mobile home park or affordable housing community, would you start by acquiring homes or focus on acquiring land first?

    I’d appreciate any insights from those who have successfully made the transition into mobile homes.

    As an aside, the year the mobile was manufactured plays a major role of whether you can get financing. For mobiles, it's usually a cash purchase and for anything older than a few years, no financing is available anyway. And unless you own the land, it's very likely no financing is available for even the nicest mobile. We once visited a friend in a doublewide who moved from Seattle to Santa Barbara California area and paid roughly $800,000. The land made up 90% of the value. 

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    3mo
    Quote from @Nadene Long:

    I have experience flipping houses and currently own a small portfolio of rental properties, but I’m considering a pivot into mobile homes.

    I have access to distressed mobile homes that can be purchased for $1,000–$10,000. A deal I’m evaluating would look something like this:

    Purchase: $5,000
    Rehab: $25,000
    All-in: $30,000
    Rent: $1,500/month
    Lot rent: $785/month

    I would likely use a HELOC at around 5% to fund the purchase and rehab.

    For those experienced in mobile homes:

    • Does this model make sense when you don’t own the land?
    • Would you use a HELOC for this type of investment?
    • If your long-term goal was to own a small mobile home park or affordable housing community, would you start by acquiring homes or focus on acquiring land first?

    I’d appreciate any insights from those who have successfully made the transition into mobile homes.


     I'd take the advice of @Roger D Jones seriously and network your way to speaking with others that have tried to do this!

    One thing you did NOT include - what's the ARV of these homes, given they depreciate?

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  • Eric Power
    Member since 2026 · 11 posts · 3 votes
    3mo

    I would avoid investing in any real estate deal where you don't own the land. The upside from the appreciation on exit, especially with the leverage you are highlighting, is really where the money is. Refi will be challenging without land. That's where the appreciation is. MH's depreciate just like cars.

    1Reply
  • Lou HaidousPro Member
    Member since 2023 · 3 posts · 1 vote
    3mo

    Hey Roger, 


    I’ve been flipping mobile homes for the past few years, selling through the park and land contract direct to buyers. I just got a deal across my desk to purchase a 50 pad park. Any chance I can pick your brain on the opportunity? 

    0Reply
  • Claudia Rodriguez
    Lender · Phoenix, AZ · Member since 2026 · 55 posts · 17 votes
    2mo

    The part I’d spend the most time analyzing is the lot rent and the fact that you don’t control the land.

    At $1,500/month rent and $785/month lot rent, you're starting with $715/month before insurance, maintenance, vacancy, management, utilities (if applicable), HELOC payments, and other expenses. I'd want to model the true net cash flow pretty conservatively before deciding whether the $30K investment makes sense.

    I’d also look closely at the park rules: Are rentals allowed? Are there restrictions on resale or buyers? How often has lot rent increased historically? What happens if you eventually want to move or sell the home? Those factors could have a significant impact on the investment.

    The HELOC may give you inexpensive access to capital, but I'd still evaluate the mobile home investment on its own merits rather than letting easy access to funds make the deal look more attractive.

    If the long-term goal is owning a mobile home park, I’d also think about whether buying individual homes is teaching you the parts of the business you ultimately want to learn. Owning the homes can teach you tenant and unit operations, but owning the park introduces an entirely different layer, land, infrastructure, utilities, zoning, roads, pads, and management.

    Interesting strategy though, especially at that acquisition basis. I’d be curious to hear from people who have used individual mobile homes as their path into eventually owning parks.

    0Reply
  • Alyssa MarquezBusiness Member
    Real Estate Agent · San Antonio TX / Fort Lauderdale, FL · Member since 2023 · 120 posts · 29 votes
    1mo

    Numbers look promising definitely, but be very concerned about the lot rent, which will be one big cost you cannot manage. Ensure a park's rules will permit home transfer, rehab, future lot rent increases, ownership at its location long term prior to putting a $25k into rehab; while HELOC use could be advisable as cash flow supports debt comfortably I would require and maintain a margin of safety for vacancies/repairs and that building up an interest in owning a whole park may best start with two to three individuals as one to learn the operations and tenants' perspective in this market relatively inexpensively compared to buying an entire park.

    0Reply
  • Nicholas FloydBusiness Member
    NY · Member since 2026 · 305 posts · 101 votes
    2w

    Interesting approach, Nadene. I think the biggest thing to consider is the cash flow after all expenses. With $1,500 in rent and $785 in lot rent, you’re left with $715 before maintenance, insurance, vacancies, and financing costs. That could make the margins tighter than they initially appear.

    From the business funding side, I'd also explore whether a business line of credit or another financing option makes more sense than using a HELOC secured by your personal property.

    I’d definitely look closely at the park’s rules, potential lot rent increases, and whether the numbers still work if unexpected repairs come up.

    I’m curious, are you planning to start with one or two mobile homes to test the model before eventually purchasing an entire park?

    0Reply
  • Ali NajjarBusiness Member
    Lender · NJ · Member since 2025 · 66 posts · 28 votes
    3d

    From a lending POV, run your numbers above 5%. HELOCs on investment properties usually cost more than ones on your own home, and the rate is often variable. The line is also secured by the rental you draw it on, so a bad deal puts that rental at risk.

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