Buying raw land, mobile homes??

Question

Hello all, I was recently presented an opportunity to purchase 5 acres for below market value. I intend to sign the contract on it in a couple of days. My mind has been reeling with the choices of what to do with it. There used to be a mobile home on it so it already has water, septic, and power nearby so I was thinking of finding a decent used MH and putting it there so the rent could cover the cost of the land loan and it would buy me some time to figure out what to do with the rest. I could subdivide and put more MH’s and just collect rent but I know financing for them is sketchy. There are a lot of MH’s in my area and I see them on mls all the time but have no idea how people are buying them. Also, if I went that route I would probably have trouble refinancing and doing a brrrr in the future. I’ve also thought about building duplexes or single family but that would obviously take much more time. Thoughts on what I could do with this 5 acre plot or if my MH idea is a good one? It’s in the county so there’s not a lot of restrictions.

Justin Apple · Answer

@Brenden Mitchum thank you, I will let you know what they say

Brenden Mitchum · Answer

@Justin Apple

Definitely check with the county because as soon as you start bringing in more than a home or two most counties would crack down, especially if it's not already zoned MH. What you described would require you to split the land into 5 separate parcels and have each zoned MH. Sounds like a nightmare but might be worth looking into?

Justin Apple · Answer

@Brenden Mitchum thanks for the reply. It wouldn’t be a MHP rather 5 separate sites with separate utilities. I don’t think that would fall under MHP rules BUT I will look into that! Thank you.

Brenden Mitchum · Answer

Hey @Justin Apple, welcome to the BP community!

Your issue with turning this into essentially a small mobile home park will be with the county. Unless it is already zoned MHP (not just MH), you will almost definitely not be able to bring in more homes. Your first step here should be to figure out what the zoning is, if you don't already know. If it's MHP then you're good to figure out the next step. If it's not, you will need to speak with the county to find out if they will allow you to rezone it to MHP. If this is near a major metro, then your chances of this happening are near zero.

Step 1 is your biggest hurdle so address that first. Chances are you won't make it past this step. But, if you do, drop another post in the forums and myself or other MHP investors will be happy to help!

And, feel free to reach out to me directly anytime!

Scott Davis · Answer

Most higher priced or mid end rural neighborhoods I think you're better off putting in a new *manufactured home (aka "mobile home") than going used. In my area manufactured homes that have been moved more than the initial time from the lot are (or can be) significantly more expensive to insure (but it's usully always still do-able), and there can be additional unforeseen hiccups. Figure out how many bedrooms your current septic can support, and shop around some, you might find a fairly attractive deal going new. Can finance (the purchase of new m.home it's self) as well.. Although overall manufactured on land might be a little harder to finance than stick built, it's certainly do-able in most cases especially with new. On a lower end piece of land however, despite these negatives, especially if the utilities and septic are all there, I might still consider moving in a used 2000's or possibly even 90's and newer single or doublewide. Well maintained older manufactured homes on their own rural land hold their value surprisingly well in a lot of areas. The thing is any "decent" used manufactured home "to be moved" still can/will often sell for a surprising amount. The other option is to partner with a builder or etc. *technically, "mobile homes" haven't been made since the 60's & whatever you do, avoid non-hud certified manufactured homes (avoid pre-1976) unless you're in a county with no building codes or etc

Buying raw land, mobile homes??

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