12 places mobile home for sale

Some investors are living in a cloud of shame with their investment strategy.

Now, how could anyone think that an investment is a matter of shame? Yet, a small number of investors have not been living under this cloud for years. At that time mobile home parks were made for investors.

Stigma surrounding mobile home parks

Mobile home park (MHP) operators felt inferior to other real estate investors. There was a stigma attached to this state, there are disgusting terms like “trailer trash”. People thought these investors owned and operated a park catering for these tenants.

This has changed dramatically in the last five years. Analysts on Green Street even say that mobile home parks are a favorite of commercial real estate these days.

The popularity of investing in mobile home parks has really skyrocketed. BiggerPackets’ own Brandon Turner wrote to Forbes about investing in a mobile home park. He is investing heavily in MHP due to the difficulty in finding fair price alternatives in other sectors, and for various reasons he outlines in this article.

Why and how to find a mobile home for sale

It was a popular strategy promoted by Lonnie Scrags over the past few decades. It involves buying used mobile homes and leasing them. This seemed to work in the past, but most MHP operators will get their feet out of this strategy as quickly as possible. Learn more about why in this post from BiggerPockets.

Today, knowing how to buy a mobile home requires an important skill to increase the profitability of a mobile home park.

Why? Because the value of the park is a ratio between the net operating income and the rate of return. More specifically:

Price = Net Operating Income ÷ Cap Rate

Unveil your investment strategy

Everyone knows that investing in real estate can be a powerful way to build wealth and achieve true financial independence – but because each person’s journey is different, taking the first steps can be challenging.

Invest by mobile home park numbers

If an MPH operator achieves a 100-space mobile home park with 60% occupancy and an annual net operating of 100 100,000, the value would be about 500 2,500,000.

$ 2,500,000 = $ 200,000 ÷ 8%

What if they decide to fill 30 of the 40 vacant lots with tenants? Without anticipating any other changes, it could increase net operating income from $ 200,000 to $ 300,000 (50% increase in occupations) [90 ÷ 60] = 50% increase in income).

$ 3,750,000 = $ 300,000 ÷ 8%

But suppose they bought the park with 66.7% debt and 33.3% equity. With a value of $ 2,500,000, it has about 6 1,666,500 in debt and about $ 833,500 in equity.

At the new price of $ 3,750,000, the টিতে 1,250,000 gain in equity translates into a 150% equity ($ 1,250,000 ÷ $ 833,500) return.

Leverage appreciates the asset and multiplies it by 3 times [1 ÷ (1.0 – 0.67)].

Thus, the cost of investing $ 100,000 in this park would be $ 250,000 at the asset level. And this is before any other improvement or cost reduction measures.

The advantage of increasing the occupancy of the mobile home park

In addition to the high income and price, there are several benefits to increasing the occupancy of a mobile home park. These include:

  1. When you add new mobile homes, they enhance the quality and look of the entire community. Placing a few new homes near the entrance will further enhance the drive-by look.
  2. You can create a higher rental standard with new tenants, who will receive a market lease rate. This raises your income level and current tenants ’expectations that will increase in the future.
  3. A higher total income allows you to increase salaries and thus hire a better manager and maintenance staff and reinvest in the community.
  4. Companies like Fannie Mae and Freddie Mac like to offer surprising surprises in mobile home parks – with surprisingly favorable terms and rates – but they want to see some specific occupations and quality standards first.
  5. If you want to sell your park, higher occupancy and higher values ​​will attract more buyer competition, a better buyer and a higher price. You can also attract an institutional buyer who will pay more than most buyers.

More on mobile home from BiggerPockets

How To Find Mobile Homes For Sale For Mobile Parks

There are many ways to find new and used homes for mobile home parks.

Buy new

There are great financing options for park owners to buy a new mobile home. For example, Warren Buffett’s 21st Mortgage provides financing for park owners when they finance up to 100% for a tenant-buyer and mobile home tenant-buyers. As a park owner, you can shop for overstock mobiles and modular homes that you can acquire at dealer costs.

Become a dealer

When you become a dealer, you can buy a new home directly from the factory. It can save significantly on costs and will open up the opportunity to sell a few homes to outside buyers. You can sell the house at a discount to the tenants-buyers in your park and make a profit along the way.

Drive in dollars

You can drive (or drive stuff) through other area parks to see FSBO (for sale by owner) signs on mobile home windows. You can then make a deal to buy a mobile home and move to your park. Plan to pay cash at the scene in exchange for documents. If necessary, go to an escrow agent’s office to get cash and sign documents.

Park closed

When other parks are closing, you can occasionally arrange for their tenants to relocate to your park. You may be able to save running costs (bulk) and fill your vacancies. Paying the cost of moving house is usually a big win for park owners (see price formula above). For example, 30 spaces valued at $ 1,250,000 have been translated. That’s more than ,000 41,000 per lot. You can move house and give the tenant a “signature bonus” and still be ahead financially.

Craigslist and other websites

Many are surprised by the number of mobile homes listed on Craigslist. You should expect a mixed bag of older models that have been rebuilt and ready to move-in and a mobile home that needs some love. Popular real estate marketplaces like Zillow also have mobile homes for sale on their websites. Always reliable Google is a good place to start a search.


Multiple listing services (MLS) always have a few mobile home listings for sale. One of the conditions for accessing MLS is to be a real estate agent. If you are not one, you can easily partner with a licensed broker or agent.

Fema’s house

The Federal Emergency Management Agency (FEMA) has a contract to pay mobile home builders to build mobile homes for emergencies. Hurricanes and floods can displace large numbers of people and governments often take steps to help. Hurricane Katrina, for example, displaced more than a million people in the Gulf region in 2005, and at least 114,000 families were relocated in femur trailers. After these emergencies, the government auctioned off these homes with steep discounts, and they are usually not very old.

Lonnie Holmes

Some MPH owners try the “lone’s homes” strategy of becoming landlords (as mentioned above, it means buying used mobile homes and leasing them out). While it may work for some people, you may find it labor-intensive and unprofitable. However, if this is for you, use this strategy to identify someone, offer them a mobile home, move homes into your park, and sell or finance new tenants ’homes.

Current tenant

When an existing tenant wants to sell their home, you (or your manager) can help them by providing a buyer from your waiting list. You can prescreen buyers who have called or applied to find the right buyer. From the middle of the process, you can determine the lot rent at the current market level. This prevents you from playing defense after the home seller talks about their low rent.

Targeted digital advertising

Geo-fencing is a way to target Facebook or Google ads to specific locations. Let’s deal. Not every park is well managed or ethically managed. If a park has many deserving unhappy residents, you can geo-target that park and place a move-in special ad. You may have to pay for this move and perhaps even pay a signature bonus, but it can be worth it as mentioned above. MHP operators offer bonuses up to করা 15,000 designed as a college fund deposit. This is a great way for new and happy tenants.

Facebook Marketplace and eBay

The Facebook Marketplace is a treasure trove for all sorts of things, and it can’t hurt to find mobile homes for sale. EBay could be another great source.

Newspaper advertisement

There are still newspapers, and of course, they are also online. The tenant population of mobile home parks is often older, and they still advertise for sale in newspapers for their mobile homes. Classified trading newspapers are also a good source.

Mobile home park operators should keep in mind that one of the best ways to earn more is to increase occupancy and add more mobile homes to your park. This post has given you different ways to achieve this. Having multiple sources is important for achieving mobile homes. If you look at the math and consider that owning an MPH is the right choice for you, you will soon see that your business is giving a big return on investment.

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