Who buys mobile homes in parks?

For several years now I've been investing in mobile homes located in mobile home parks. Why? Because they're quick, manageable flips that fit a need in our current market. Rents are currently the highest they've ever been, and many people are finding the American dream of owning their own home to be all but lost. Mobile homes offer people an affordable way to OWN something, even if they are renting the land on which it's located.

I've found that many buyers are younger families using mobile homes as a stepping stone to getting their dream house. I'm located in a market where a two-bedroom apartment rents for about $1,200 a month. In comparison, the average mobile home lot rent in my area is about $600. They've now cut their monthly housing cost in half. I know what you're thinking- what about the cost of the mobile? It's fair to consider about 75% of this cost to basically be a deposit. If they purchase a mobile home for $15,000, live in it for five years, keep the home in good condition, and then re-sell it- It should sell for approximately 75% of what they paid for it. What does all this mean? It means five years later the family has saved $36,000 in rent that they can put toward a down payment on a house. It also means they can sell their mobile home for $10,000+ that they can put toward closing costs. In Summary: It means that they are now in a much better position to purchase their dream home.

Apartment 5 Year Cost:

Purchase Price: $0

Monthly Rent: $1,200

Total Rent Paid: $1,200 x 12 x 5= $72,000

Sale Price: $0

Total Out of Pocket: $72,000

Mobile Home 5 Year Cost :

Purchase Price: $15,000

Monthly Rent: $600

Total Rent Paid: $600 x 12 x 5 = $36,000

Sale Price: ($10,000)

Total Out of Pocket: $15,000 + $36,000 - $10,000= $41,000

Another group that mobile homes are great for are retirees. Many people in their golden years want to downside, reduce expenses, and reduce maintenance. In fact, many mobile home parks are specifically for the 55+ community. Although these won't appreciate in value like a traditional home, for many retirees it's more important to ensure their nest egg will last in the long run. Having an affordable, low monthly expense may be more important to them than the overall value of their home. Often times I've found that a retiree has no desire to buy a home in a $500,000+ home neighborhood in which their kids & grandkids live; however they really want to be close by. In this situation many find that a cute two bedroom mobile home, in a nice, quiet park is the perfect solution.