New construction mobile home

[John Powell]

I’m buying a lot and doing all the prep work (septic, well, power, grading, driveway ect) then putting a brand new mobile-home on the lot. Looks like the lot and prep are going to be about $25k the home will be around $60k installed. 20 year old homes in the area are selling around $150k. What am I missing my profit margin is huge. What should I watch out for. I have verified that I’m allowed to do septic well and place a mobile home in that location. I’ve previously flipped houses and have several rental and am an agent. It just feels too easy.

[Scott Mcnemar]

@John Powel

This is a niche that is a hidden goldmine, I do these in my area, except with a twist. Conservatively there are 10,000- 12000 mobile homes on private lots,(.33 -1.0 acre lots) within a 30 mile radius of me. About half of them have very old (20yrs or older) rundown MH’s on them, all with city sewer,power and water. Ideally I buy them for 100k +/- 10k, hall off old mobile and clean lot for 10k+/- and set up new MH for 80k, so I’m all in 190k-200k. I List and sell these as affordable housing for 320k, they sell in 60-90 days all year round.Try to net 100k per deal, after all expenses.

I’m working on getting MH’s factory direct, and I get an occasional lots for 75-80k, increasing my margins even more. We have to have them on 8/point foundations ($8000) or full perimeter foundations (15-$20,000)to get them financed, most already have 8/point foundation in place, or I have it put in.

The median home price in our area is $490k and climbing rapidly. This is “Affordable Housing”, Brand New Doublewide MH, 33acre lot for $320,000, and climbing rapidly .

Raw land and installing utilities also works with this model, I connect to city water, sewer, and power. A lot more work and less profit but still profitable.

I am an agent/PM/investor so I know the market exceptionally well. I’m looking for capital partners to scale up and get into MHP space (100 MHP’s within a 30 mile radius of me) Anyone interested please feel free to contact me. (Have pictures if interested)

point foundation or I put them in.