Buying 1 acre and dividing it into multiple lots for long term rentals

[Daniel Medellin]

Hello chat, 

I am currently interested in an acre lot here in Texas. I’m waiting to hear back from a city representative to see if it’s possible to divide the lot into multiple lots and put a mobile home on each lot.

Once the land is paid off and divided, is it possible to use each lot as collateral for its individual mobile home? 

Thanks in advance!

[Bill B.]

Unless the land is super valuable, probably not collateral for the mobile homes. 

BUT, get a solid quote on utilities. You could easily be $100k in for water/gas/power/sewer if you’re talking 4+ lots. 

If you don’t plan to sell the lots w/mobile homes is there a reason you have to split the lot? Obviously the ideal way would be to split the lots and rent the lots to mobile home owners but that seems like a very small market. But if your plan is to rent the mobile homes out you should be fine with one lot.