If you’re a mobile home investor, you’re weighing several options on what streams of income you might be able to tap into. We think it’s great that you’re digging deep and looking into what’s available.
Investing in mobile homes with land is one such option. As with any other endeavor in life, there are pros and cons with this too. What we want to do is lay them out clearly. That way you can make the decision that’s best for you.
You may find that investing in a mobile home with land is simply not for you. Or you may find that it’s perfect and will coincide with your goals. There’s no loss in time whether you confirm what you do or do not want to do.
The pros and cons of investing in mobile homes with land
Now, remember this is just a general overview, comparing the pros and cons side by side. Just because you find the idea of investing in mobile homes with land appetizing, that does not exonerate you from doing further research.
Let’s look at some of the pros
There are many cons to investing in mobile homes with land:
- The land is appealing. Let’s face it. Land is appealing to the American dream. How many folks aren’t dreaming of having their own little homestead? Even a mobile home on a small chunk of land can acquire that vibe.
- It means an affordable dream. This goes both ways for the investor and the person you sell the mobile home with land to. You don’t have to sink so much money into investing as compared to investing in a stick built home with land. It comes as no surprise that mobile homes are more affordable. And folks who are looking for a bargain — especially with lower and middle-class incomes — are bound to pick up on your mobile home with land investment.
- Mobile home repairs are affordable. Considering the lower and middle-income folks who will look over your home do not have the highest of quality expectations, this will help offset your repair costs. This doesn’t mean you’re going to sell a shabby home. But rather a clean and comfortable, functioning home. In most cases, you can tackle the repairs on your own.
- Appreciation. Believe it or not, appreciation is a thing in mobile home investing. Especially double-wides on land. Those appreciate almost as well as a stick-built home.
Now for the cons
So it’s time for the cons. To some, these cons may not be deal breakers. To others, they’ll seal the deal on keeping them away from investing in mobile homes with land.
- The cost of land. So this point comes as no surprise. The land is costly — in most situations. So depending on where you’re investing, the prices can skyrocket. And yet, if the market will bear it, it could turn out to a wise investment. If not, you may have some heavy property taxes on your hands to contend with while you wait on a buyer.
- Maintenance. Depending on the nature of the property you invest in, land maintenance could be a challenge. Does the property need significant love and care before it could be appealing to your market?
- The condition of the mobile home. Be careful that you don’t get yourself into a money pit by buying land with a junky mobile home. If the mobile home is abandoned and is beyond repairable, it may be in your best interest to stay away from that investment. The cost of removing a mobile home may prove a pain to your investment. Call around and get an idea of what the going rate in that area would be for mobile home removal and disposal.
- The market may not bear it. If you have an area that is more likely to invest in mobile homes on rented mobile home park lots, then this is the wrong investment for you. It’s all about location and target audience. Also, you need to check if the property has any rules behind it on what you can or cannot do to improve it.
Be a smart investor
In the end, investing in mobile homes with land can be a rewarding experience for all. There is certainly a market for it. But you do need to be aware of location, the condition of the property, pricing and more. Can you flip it around and get more out of it than what you must pour into it?
Mobile home investing comes with its own risks. It pays to be a smart investor. Blindly going into an investment can do you in if you’re not careful.