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6 Ways To Make Money With Mobile Homes on Private Land

6 Ways To Make Money With Mobile Homes on Private Land

 

Mobile Homes



Creating value and Making money with mobile homes on private land (not in pre-existing mobile home parks) is generally not a real estate niche that many investors consider exploiting. However, it is for this and other reasons that investment in individual mobile homes attached to private land can be so lucrative. In this blog post we look at six ways to make money from mobile homes on private land.

Note: This article is about mobile homes and prefabricated homes purchased with land. The house and land were probably purchased together. This article does not discuss investment in homes in pre-existing mobile home communities.


1. Buying and renting both the house and the land


Firstly, it is almost always important to buy most of your investment properties at as low a price as possible below the retail price. Once a mobile home with land has been purchased, both can be rented out at the end of the month. In most parts of the country, tenants look forward to renting a quality, safe, prefabricated home to live in with their family.

Professional tip: If your goal is to make money, then buying mobile homes with smaller plots of land (think a quarter of an acre) will help to keep acquisition costs to a minimum.

2. Buy the house and the land - Then sell the house and rent the land indefinitely.

Mobile homes attached to private land are likely to be considered as one of two types: immovable property or movable property.
Real property

When the original owner of the mobile home moved the house onto the land, he legally joined the two properties (mobile home and land) into one legal description. In many states, title is then transferred to the state. Annual property taxes will change depending on your state.

Personal Property

If a mobile home located on private land (which you own) is considered personal property, it will likely have a title similar to a vehicle. The mobile home and the land will be taxed separately in many states. The mobile home has never been legally married (attached) to the land. This process begins by contacting your tax collector and property assessor.

If a mobile home is legally attached to a piece of land, it can be single and separate. This is how people can improve their prefabricated homes from year to year while keeping the same piece of land. This process of legally separating a mobile home from a piece of land starts with your tax collector and property assessor.

In relation to each other:

Legally separating the mobile home and the land does not mean physically separating the two: the mobile home will remain on the current plot of land. If the mobile home is legally separated from the land, it will probably have a title and will be considered (and taxed as) personal property. In this way, you can sell the mobile home for money or payments while retaining ownership of the land for a monthly rent.

Professional tip: If you sell a mobile home with the intention of renting the land, take precautions so that the house is not removed from the property for a number of years.

3. Buy the house and the land - Then sell both for cash or bank financing.

This exit strategy may correspond to what most investors think when they hear "investing in the mobile home". Depending on local supply and demand, your ability to resell or quickly return a mobile home on private land may not be realistic. That said, the asking price at sale should be of interest to many buyers in your local market.

Pro Tip: Make sure you have a realistic exit strategy and turnover before you make an offer to purchase. Check comparable sales figures thoroughly.

4. Add more houses

 Check with your local code department if you wish to add more mobile homes to your existing lot. In more rural areas, adding mobile homes with adequate utilities and infrastructure may be possible and financially beneficial. Think about your options and ask many questions before you pull the trigger and add more units to your property.

5. wholesale trade

The wholesale of mobile homes attached to private land is very similar to the wholesale of single-family homes. As a wholesaler, it is important to know whether the mobile home is considered personal property or real estate. This way, you ensure that the seller has the appropriate title(s), if any.

When wholesaling mobile homes attached to private land, you will only assign the property purchase contract to another investor or final buyer. These buyers will purchase your home purchase agreement directly from you. For this reason, you will never be obliged to own the mobile home in order to benefit from it. The amount of compensation will certainly vary depending on the potential deal and equity.

6. Something more unorthodox

Perhaps you would like to try something a little unorthodox. Depending on your goals, the local zoning of the lot, the location, supply and demand, the size of the lot and the size of the house, you may be able to consider the following:

    Renting the mobile home to a company
    Use of the land and mobile home as storage for boats, cars, etc.
    Subdividing the land and adding more houses - or selling to land buyers

Conclusion

There are many ways to create value as an active investor in the mobile home. Some are more realistic than others. Keep in mind that little happens without serious action and daily commitment on your part. While there are many ways to make money in real estate, there are also countless ways to lose profits. Have fun and take daily action to achieve your financial goals. If you have any questions, don't hesitate to ask them below. There are many active investors in the area to offer help and advice if you just ask.

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