Flipping New Mobile Homes/land package

[Jeremy Holcomb]

Hello BP, 

I was out today riding through town and looking at homes and land. Has anyone here ever placed a new mobile home on a piece of land and made utility improvements and then sold them? I see a lot of used mobile homes on land here for sale between 80K-179K and most of them are older and hard to get financing for because of age. Any thoughts on this strategy?

[Jeremy Holcomb]

Originally posted by @Jerry Lucker:

It's all in the numbers as always.

1) What is an accurate estimate of what the property would sell for after a new home is placed on the lot?

2)What can you buy the lot for? plus - What is the cost of improvements needed (well, septic, power, etc.)? plus - What is the cost of a new house installed?

3) #1 minus #2 = Enough profit to make it worthwhile?

I've done several land/home packages. Some as flips, some kept as rentals. Always works great for me!

The numbers seem to work with approximately 30K per flip. It costs roughly 90K to put the package together. Approximately 3-6 month of holding land and having septic, well, and electric installed. We would price at 129,900 to cover realtor/closing fees on the sale. The homes being new would qualify for conventional financing through the VA, USDA, Banks, or FHA. Average value would be between 130-140K. I figured prices on the lower end would allow for a faster sale.