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Creating value and making money with mobile homes on private land, outside of pre-existing mobile home parks, is not typically a real estate niche that many real estate investors consider pursuing. Even many mobile home investor shy away from investing in mobile homes attached to private land when first beginning to invest in mobile homes.
✔ Mobile homes attached to private land sometimes fall into a weird unfamiliar-zone for many investors.
✔ Mobile homes attached to private land may not be understood or belittled by single-family house investors.
On the other side, mobile homes attached to private land may seem too challenging or overwhelming for most newer mobile home investors wanting to start with mobile homes inside of parks.
However, it is for this and multiple other reasons that investing in individual mobile homes attached to private land may be so lucrative. In today’s blog post and video we look at multiple ways to make money with mobile homes on private land.
Note: This article discusses mobile homes and manufactured homes that are purchased with land. The home(s) and land were likely purchased together as a package. Today’s video discusses adding mobile homes to your vacant land. This article does not discuss investing in homes within pre-existing mobile home communities.
1. Buy the mobile home and land together. Then RENT both the mobile home and land to a renter.
When paying cash or bank financing it typically is wise to purchase most of your investment properties for as far below retail price as possible. When purchasing a mobile home and land via seller financing or another creative method you may be able to pay the seller a considerably higher purchase price since you’re making payments for the seller’s home and equity.
Once a mobile home with land has been purchased both may be rented out for monthly cash-flow. In most areas of the country renters are waiting to rent a quality and safe manufactured home to live in with their families.
Related video: Calling Past Landlords
Pro Tip: If your goal is cash flow, then purchasing mobile homes with smaller parcels of land (less than 10th acre) will help keep acquisition costs to a minimum in many markets.
2. Buy the mobile home and land together. Then SELL the mobile home and RENT the land forever.
Mobile homes attached to private land will likely be considered one of two types: real property or personal property.
Real Property: When the original owner of the mobile home moved the home onto the land, he or she legally joined/married the two pieces of property (mobile home and land) together as one legal description. In many states the Title(s) are then surrendered to the state. Yearly property taxes will change depending on your state. Procedures to attach and separate properties vary from state to state.
Personal Property: If a mobile home is considered personal property while sitting on land you also own, it will likely have a Title(s) similar to a motor vehicle. The mobile home and the land will be taxed separately in many states. If you wish to legally joined/marry your two properties together start by contacting your local tax collector and property appraiser for more information.
Related video: Are mobile homes personal property or real property?
If a mobile home is legally joined to a parcel of land then it may be unmarried and separated as well, assuming there are no liens on either property. This is how mobile home owners upgrade an older manufactured home to a newer manufactured home while staying on the same parcel of land.
Legally separating the mobile home and land does not mean physically separating the two from one another. Rather the mobile home will remain on the current plot of land in the same location. The changes are on paper and filed in public record. Your current tax rate and insurance rate may lower as a result of this separation.
Pro Tip: If you’re selling a mobile home with the intention of renting the land, take precautions with proper agreements to ensure the home buyer will not quickly remove the mobile home from your property for at least 5 years. Make sure to collect 5 years or more of lot rent before the new home owner may remove the home from your land. This way you only sell to a mobile home buyer that loves the location and wants to stay for many years to come.
3. Buy a mobile home and land. SELL both for all-cash or bank financing.
This exit strategy may be what most real estate investors think of when they hear about mobile home investing. Depending on local supply and demand, your ability to quickly resell or flip mobile homes on private land may or may not be realistic.
Make sure your exit strategies and numbers are realistic for your location and time of the year. Your selling price should be attractive to a majority of serious buyers in your local marketplace. Know your numbers!
Pro Tip: Be certain in your exit strategy and realistic sales numbers before ever making any purchase offers to buy a mobile home. Verify comparable sales figures thoroughly.
4. Adding more mobile homes to your land.
Check with your local zoning department about adding more mobile homes to your current parcel of land. In country areas, outside of city limits, adding more mobile homes with proper utilities and infrastructure may likely require much less red-tape and legal hurdles.
Ask the zoning department about this land’s setbacks for any other mobile homes you add to the land. Setbacks are the distances the mobile home needs to be from your property line. Know your land restrictions? What ages of mobile homes are legal in the area? What utilities are already in place or can be tapped into?
Consider all your options, ask many questions, and get help before pulling the trigger and adding more investment mobile homes to your property.
5. Wholesaling mobile homes on land.
Wholesaling mobile homes attached to private land is very similar to wholesaling single-family homes. As a wholesaler, it’s important to know if the mobile home is considered personal property or real property.
When wholesaling mobile homes that are attached to private land you’ll be selling/assigning your Purchase Contract to another investor or end-user buyer for a specific Assignment Fee. Your buyers will purchase your real estate Purchase Contract directly from you or through a simultaneous closing via the help of a local property attorney, contract attorney, or notary. In this way you never need to own the mobile home in order to create value. As a wholesaler you are usually paid at closing through the closing attorney, title company, or escrow office.
In conclusion, there are a number of ways to create value as an active mobile home investor. Some are more realistic than others. Please keep in mind that little happens without serious action and daily commitment on your part.
While there are many ways to make money in real estate, there are countless ways to lose profits as well. Have fun and take daily action to reach your financial goals. If you have questions, feel free to ask them below.
Love what you do daily,
John Fedro
support@mobilehomeinvesting.net
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30 Comments
Julie
July 24, 2020Hi John,
I have a doublewide, 28 X 48 in excellent condition (brand new roof, solid steel skirting, painted last year, well-maintained). It’s a Silver Creek home, manufactured in 2000. I’m not sure when it was set up on this property; I’m the second owner. The land is the size of a city lot and the home has city water and sewer. There’s a front porch plus a deck on the back, a fenced backyard plus a smaller picket fence around the front yard, a large storage shed, and a double carport. The neighborhood is in the country, quiet, safe. It’s not a park; it’s more like a subdivision.
I’ve become disabled and need to downsize and relocate for health reasons. I simply can’t manage a 1344 sq. ft. home myself anymore and the Texas heat is literally killing me. I’ve had my home for sale by owner on Zillow and have had lots of interest and showings. But it seems like here in West Texas, the type of folks who are most interested in my property can’t qualify for a mortgage loan.
My best bet, I think, is to find investors who would be interested in buying it as a rental but I don’t know how to do that. The home would easily rent for a minimum of $750/month. A nearby single wide without a carport, storage shed, porch or anything is renting for $675. Can you help or point me in the right direction? My home is in Abilene, TX.
Thanks!
Julie
John Fedro
July 24, 2020Hi Julie,
Thank you so much for reaching out and connecting. Additionally, thank you for your detailed comment and questions. This certainly makes answering your questions a bit easier for me. With that said it certainly does not surprise me that many of the folks looking at your home would be unable to purchase the property. Mobile homes on land are usually a bit more difficult to become financed for. Not only does the home need to qualify (which based off the description sounds beautiful and should not be a problem) however the buyer also has to apply and usually bring 20% down for a manufactured home loan. While this is not always the case it is typical and many buyers simply will not have this kind of money.
I am working with an investor somewhat nearby however depending on the price range you are looking to sell your property for this may or may not be an option. When you have time I encourage you to list the property on sellfastbyowner.com when possible. This is a free site that will advertise your home to any investors in the area. With that said I highly encourage you to contact a local realtor that specializes in mobile homes nearby to help sell your property. The reason I mention this is because buyers looking with realtors will typically be a bit more qualified and serious than buyers looking without the help of a realtor. Your home sounds beautiful and should not have any problem selling once you find a qualified buyer. Additionally, I would normally tell you to contact a local real estate investors club to advertise your property to this group as well. However I did some searching in and around your area and could not find anything within a 50 mile radius of you at all. With all this said I hope this starts to point you in the right direction and help. As always, if you ever have any follow-up questions or concerns please never hesitate to reach out anytime.
Talk soon,
John
Jewel Dombroff
April 6, 2021How much is Julie selling for and what is the down payment requirement?🙂
John Fedro
April 17, 2021Hi Jewel,
Thank you for reaching out and connecting. I’m not personally working one-on-one with Julie, she is a reader who reached out in the comments for some help. Besides the correspondence above I am unsure of what Julie is selling for with regards to total price and the down payment. If you are looking for something to purchase via payments I would definitely encourage you to talk to as many sellers as possible and also even reach out to your local real estate investors Association. You may talk to the president of the local real estate investors Association to see who they know invests locally in mobile homes. You can then connect with this person and discuss what you are looking for with regards to a potential home. This is only one suggestion however I hope it makes sense and point you in the right direction moving forward. If you have any follow-up questions now or moving forward please never hesitate to reach out anytime. All the best.
Talk soon,
John
Jacqueline Henry
July 28, 2020What if you want to sell a mobile home you own and is paid off but the land isn’t yours the trailer would have to be move do you still buy them
John Fedro
August 4, 2020Hi Jacqueline,
Thank you for reaching out and connecting. Additionally, thank you for your questions. I will assume that you are asking me this question as a mobile home investor. In this case, if the mobile home is mine that I’m going to sell the mobile home and keep the home in the current location of possible. If the landowner will allow me to stay I will do my best to stay, and if the landowner wants me to move I will do my best to convince the landowner to let me stay, or if not I will have the home moved to another location or sell the mobile home to someone that wants to buy it and move the mobile home. I’m not sure if this answers your question however please let me know. If you have any follow-up questions or if I misunderstood anything never hesitate to reach out any time. Keep in touch.
Talk soon,
John
Marcus
August 2, 2020Hey John,thanks for this post, as a new land investor, adding a mobile home to a piece of land is something I’m interested in. In your experience, is there a difference in zoning for SFR lots and mobile home lots?
John Fedro
August 4, 2020Hi Marcus,
Thank you for reaching out and connecting. I hope that this information has helped you somewhat in your real estate investing journey. The zoning of a parcel of land may be changed with government approval. This process varies from area to area however it may be a pain in the butt especially if it is not supposed to hold a mobile home there and you want to put a mobile home on the land. There certainly are parcels of land that are just designated for single-family residences like site built homes, and there are other types of zoning that will allow single-family houses or mobile homes or manufactured homes. I hope that this helps and answers your question. If I did not answer the question or misunderstood something never hesitate to comment back anytime. Feel free to keep in touch. All the best.
Talk soon,
John
Ginnie
January 21, 2021Hi John,
I work for a pro bono agency in the state of Indiana. A woman called for help who has purchased a mobile home that has been on a permanent base since around 1977 and has had several additions to the home. She bought the home for cash from a prior owner and did not realize that when she sold the home she would need the VIN number for the home in order for buyers to qualify for financing. Her real estate agent shugs his shoulders and gives no help. She and people she has hired have tried to locate the VIN on the home to no avail. Is there a process in Indiana to apply for a salvage VIN or replacement VIN for a mobile home?
Thank you so much,
Ginnie
John Fedro
January 27, 2021Hi Ginnie,
Thank you for reaching out and connecting. Thank you for your detailed comment has certainly does help me understand the situation a bit better. In Indiana there is a process for most things. There is a process if a title is lost, missing, or in somebody else’s name. There is also a process for receiving a new Vin number on a mobile home. However this would have to go through the Department of Housing and Urban Development as well. For this reason this 1977 mobile home would have to pass current standards with building codes for manufactured homes. Definitely reach out to the state BMV division to ask them this question as well. Explain the situation and have the address available if possible. I assume that you have checked all over inside the home for the data plate containing the mobile homes VIN or serial number. There may also be a small metal plate at the back of the mobile home known as the HUD label. However this is likely not available either. Sometimes, depending on the manufacturer, there is a small metal plate or serial number pressed into the steel at the very front of the home where the tongue would be, or on the tongue itself. I hope that this helps and starts to point you in the right direction. Forward if you have any follow-up questions never hesitate to reach out any time. Happy to help if possible. All the best.
Talk soon,
John
Claudia Remines
January 31, 2021Hello John,I have a legal question. I was given a mobile home that is in a park. The manager said that the Corp. Wants to rid the park of older homes and that one they were going to scrap. But if I want it I can have it. I would be responsible for moving it. I told yes I want it. I secure a spot for the trailer and movers. Now they say. No.
John Fedro
April 17, 2021Hi Claudia,
Thank you so much for reaching out and connecting. My apologies with regards to the delay on this comment reply. However I do still want to answer your question for you and others that may be reading this thread. However I assume by now you have either closed on the home or moved on. In my opinion, when you are dealing with the park manager that does not want you there there is little we can do to actually stay inside of the community. You may be able to purchase the mobile home from a private seller, however if the park does not want you there and they will not allow you to keep the home there for long unless you are creative and have other people already living in the mobile home and approved on the lease. I’m not exactly sure about your specific situation however I am very glad that you contacted this manager in the first place to ask them if this home was available or any others that may fit your needs. I would encourage you to do this to other managers in and around your area as well. Moving forward when you ever have any follow-up questions never hesitate to comment back or email me directly at support@mobilehomeinvesting.net. Hope this helps some and point you in the right direction moving forward. All the best. Keep in touch.
Talk soon,
John
Breezy moore
March 9, 2021Hey there, I have a couple questions about the article I am desperate for some answers as we know nothing about this . If you could email and I can tell you the situation maybe you have some insight. Thanks so much in advance
John Fedro
April 17, 2021Hi Breezy Moore,
Thank you for reaching out and connecting. My apologies with regards to the delay of this comment reply. You may always email me at support@mobilehomeinvesting.net or comment below any time. Happy to help provide some answers for you if possible. Feel free to keep in touch. Hope all is been well since you originally wrote this comment. Feel free to keep in touch. All the best.
Talk soon,
John
Guy Hayes
April 5, 2021My mother owns just under seven acres in the county of Grande Prairie Alberta Canada we have an existing older modular home on the property . we do have the setup Plumbing and wiring for a second modular home on the same property what do we need for permits or questions we need to ask so that we don’t run into any roadblocks and can can we live in the newer one we’re going to bring on and rent out the existing order one. Concerned son.
John Fedro
April 6, 2021Hi Guy,
Thanks for reaching out and connecting. Thank you for the detailed comment as this certainly does help me understand your situation a bit better. Glad to hear about the good situation with regards to upgrading homes and renting the other one out. I would absolutely point you to the local city zoning department and code department with regards to the possibility and placement of adding another home onto your property. You will then likely want to call the permit office to discuss permits needed for moving the home, installing it, and utilities if needed. You’ll also want to get a copy of the city codes if possible. This will explain the foundations needed as well as other particulars concerning mobile homes on land. I hope this helps and begins pointing you in the right direction. Moving forward if you have any mobile home related follow-up questions never hesitate to reach out anytime. All the best.
Talk soon,
John
Catherine Dadiego
April 9, 2021I just want to buy a mobile home including the land in SW Florida, preferably Fort Myers or Cape Coral area to actually use, but can’t seem to find them for sale. Any tips on sites to look at?
John Fedro
April 17, 2021Hi Catherine,
Thank you so much for reaching out and connecting. You are certainly in a good area of the country with regards to mobile homes on land and mobile homes inside private communities. Whenever I work with folks we take a massive approach in order to find out everything that is for sale locally, not just the stuff on Facebook or Craigslist. The tips I have for you are not with regards to any websites online. If this were the case then everybody could go online and simply purchase these deals as well. Instead I would encourage you to find sellers before their homes go on the market. You can do this a handful of ways, some of them are old-school and some of them use modern technology. However they are attracting sellers before the sellers put their properties online in most cases. I’m not sure if you are an investor or simply looking for a mobile home to purchase and live in yourself. If you are looking to purchase a home to live in yourself I would very much encourage you to reach out to a local realtors in the area. Contact at least five realtors to ask them their opinions on prices and what they have available with regards to mobile homes on private land. You may also want to talk to local bank real estate owned apartments, to find out if they have any mobile homes that they have received back due to foreclosure or repossession. This is really just the tip of the iceberg however I hope this helps some and point you in the right direction. Moving forward if you have any follow-up questions never hesitate to reach out any time. All the best.
Talk soon,
John
Penny Andrews
April 27, 2021I am looking for land that is already set up for mobile home in florida
John Fedro
May 10, 2021Hi Penny,
Thanks for reaching out and connecting. There certainly land for sale in Florida. It is at a premium however is definitely out there. Land for sale can be found online, through realtors, by driving around, and so many more ways. Land closer to metro areas is likely more in high demand and will be more expensive usually. If you’re looking for land to place a mobile home on or that already has a mobile home set up, this will usually be surrounded by other mobile homes on private land as well. That is because these areas are zoned have a mobile home on them if the landowner desires. You may want to head out of the metro areas to find mobile homes and less demand where prices may be a bit lower. Hope this helps and point you in the right direction. Feel free to keep in touch moving forward. All the best.
Talk soon,
John
Kathy
April 28, 2021I am looking at a parcel in my area (in NC) of about 40 acres to build a home for my aging mom and myself (separate houses), and possibly a 3rd home for another family member (sort of a family compound) BUT the parcel has about 15 very old dilapidated mobile homes on it (not all are occupied). I mean in REALLY rough shape with trash cars and old tires, garbage laying all around, etc. What I would like to be able to do is remove all the mobile homes from the property and just clean up the parcel of all the garbage and trailer ruins to make it a family compound. After that, I might want to slice off a couple of 1-2 acre parcels to sell to potential home builders. Do I have to start by seeing whether the mobile homes are “personal property” or married to the land as was discussed above? Is there anything else I need to know? Thanks!
John Fedro
May 28, 2021Hi Kathy,
Thank you for reaching out and connecting. Additionally, thank you for your detailed comment as the certainly does help me understand your situation a bit better. Very much like your compound idea. If you get along great with your family then by all means having them close by on the same property would be ideal and fun. Hopefully the 40 acres is used well and homes can be separated by a good distance if needed. I am assuming that this is private utilities with well and septic tanks. At the end of your comment you asked if there is anything else you should know or need to know? The answer to that question is 100%, absolutely! I would encourage you to contact every department you will need to in order to achieve your ultimate goal of removing everything and bringing on three or more newer mobile homes. Go through all of the motions over the phone to meet everyone involved and get prices and estimates of what things will cost. You’ll want to speak with the local code department, zoning department, tax department, DMV, and more to understand if what you are considering is the best use of your land, legal, able to be done easily, and what restrictions and roadblocks you will run into removing the homes and setting up three new ones in different locations. I hope that this helps and points you in the right direction moving forward. I would encourage you to do all of your homework first before spending any money if possible. Moving forward if you have any mobile home related questions never hesitate to reach out any time.
Talk soon,
John
sheila jaworski
June 15, 2021hey John do you know of any land in Minnesota by any chance that will accept a mobile home? every place i look says no
John Fedro
August 31, 2021Hi Sheila,
Thank you for reaching out and connecting. My apologies with regards to the delay on this comment reply. I hope by this time you are found some land in Minnesota. Typically parcels of land that will allow for mobile homes are typically grouped together. This means that if you see a mobile home attached to private land it is likely that the other parcels nearby are zoned for mobile homes as well. Check online on general real estate and realtor websites to search where the mobile homes on private land are. You can then had to these areas to look for vacant parcels for sale or to mail to or connect with the sellers. You may also want to talk with the local realtor or perhaps a local mobile home dealer. In fact, you should talk to many mobile home dealers as sometimes landowners will approach mobile home dealerships to let them know they have land new manufactured homeowners. I hope this helps some and point you in the right direction moving forward. If you ever have any follow-up questions never hesitate to reach out anytime. All the best.
Talk soon,
John
Andrea McMillian
May 14, 2022Hi,
Any suggestions on a lender? Looking to purchase a singlewide on owned land with 20% down and good credit. Would be an investment property but finding it hard to locate a lender based on it being income property
Home is currently rented.
Appreciate any direction you may provide!
John Fedro
May 19, 2022Hi Andrea,
Thank you for reaching out and connecting. Glad to hear you are looking to purchase a home with some land. Check out the link below that may be helpful with regards to manufactured home lenders. Hope this point you in the right direction. Any follow-up mobile home related questions never hesitate to reach out any time. https://mhbuyersguide.com/manufactured-housing/financing/
All the best,
John
Matthew
June 5, 2022Hi John,
I just recently bought a 433A mobile home , so I “OWN” the land.
Since I “OWN” the land, am I legally allowed to drill a well for water ?
We`re in a major draught here in SoCal,and I`m hearing bad things about the water supply.
Thanks.
Matthew
John Fedro
June 15, 2022Hi Matthew,
Thank you for reaching out and connecting. In my opinion, you should be able to drill a well on land that you own. Unless perhaps you did not purchase the water rights for some weird reason. However while I believe you should be able to dig your own well, in many areas you may not be able to do so for one reason or another. Whether you are in the city limits or the country there may be legislation restricting you from digging your own well if it is over 20, 40, or 60 feet or more. I would absolutely encourage you to contact your local permit office to ask questions about manually digging your own well. Additionally, calling local well companies may be helpful to see your options there too. I do not want to give you any wrong or misleading information so would definitely encourage you to call your local permit office. Hope this point you in the right direction.
Talk soon,
John
Rebecca Stark-Perry
September 12, 2022How do you go about upgrading a mobile home, that is in a mobile home park?
John Fedro
October 3, 2022Hi Rebecca.
Thank you very much for reaching out and connecting. When it comes to upgrading mobile homes, it can be a bit of a rabbit hole that leads to more and more type of repairs and work. Keep in mind that in many situations upgrading a mobile home is not technically needed for you to resell it or to be lived in. However if you truly would like to upgrade a mobile home then by all means contact a few manufactured homes specific contractors and handymen. The local community manager may be able to point you in the direction of a few reliable sources. You may also want to contact local mobile home dealerships and mobile home factories to ask them the same question about a knowledgeable mobile home contractor mobile home handymen that can help with these upgrades. I hope this helps some and point you in the right direction.
Talk soon,
John
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