Question about Mobile Home Investing

[Brian Kalinowski]

When you invest in mobile homes, do you have to buy the dwelling or can you just buy the land? To have to buy the whole mobile mobile home park ( I think that what they are called) or can you buy an individual lot and them rent it?

[Jack Martin]

@Brian Kalinowski there are three common, yet completely different investment strategies that involve mobile homes:

1 - The mobile homes themselves

If your focus is the mobile homes, the most common strategy is to buy homes and sell them for a profit. Inside that strategy, there are a host of ways to create different businesses and revenue streams. (wholesaling, fix and flip, carrying paper, just to name a few) Most of what you could do with a single family house you can do with a mobile home, however if the home is in a park or your client is a park, there are additional strategies that are not common in SFR.

2 - An individual parcel of land with a single mobile home

If your focus is individual mobile homes on a single parcel of land, this is essentially a more affordable single family business, but with a more limited lender pool, and different material sources and methods of renovation.   

3 - A mobile home park, which is the land under many mobile homes 

If your focus is to own the mobile home park (which is the strategy I love) then everything is different.  You can own the homes, but the most common perspective is to create "sticky tenants" that stay for many years and just pay your rent for the land ("space rent" or "lot rent").  This is accomplished by selling the homes to the tenant, while you own the land (the park). 

All the best,

Jack