Subdividing land and adding mobile homes

[Steve Bobek]

Hello Bigger pockets community,

I'm an Investor from Michigan and this is my first post on BP.

I've got a deal on 158 acres of land off market that is worth around $550,000 that I can buy for $300,000. The piece has a lot of road frontage and my plan is to divide it into 11 parcels. The land was once farm land and tilled, but not for many years. I want to buy used mobile homes for around $25,000 and then move them to the new parcels one at a time and repair them which will cost around $10,000 each. Based on the market each of these pieces of land with double-wide mobile homes should be around $130,000 a piece based on comps.

Has anyone ever done something similar or have expertise they can share around problems I might encounter? I appreciate any feedback.

[Drew Brown]

@Steve Bobek, if your the owner of the property putting up used mobile homes it could work for a long term play. I am currently Working with an investor on moving used and new mobile homes to parks around Lower MI. 

For used mobile homes I would shoot to rent them because @Karen Hamblet stated very few lenders will lend on homes over 10 years at market value. Mobile homes are a lot like cars and a lender will value a mobile home like a car after that ten year period. 

When moving the mobile homes unless the seller is paying for the delivery cost you will have $3-5,000 in moving cost, if these are new sits you will need a foundation or piers to put them on $2-3,000 in piers setup and pour, and then setup and install you will have a HUD installer who can do block, level tie down, water/sewer (need a well at the location and septic system if not already at location), gas/heat hookup this will cost $2.5-$3,500, electrical hookup which can be $500- $5,000 depending if there is current service there or not and then skirting around $1 - $1,500. Please take into consideration these cost when planning on this build out.

Let me know if you would like to talk about property planning and mobile home installation, as I would be happy to share my knowledge.