A few different ways to invest in mobile homes...

Mobile homes are a forgotten asset class, which is one reason why they are still a hidden niche. Because it’s not often discussed, there’s a lot of confusion about investing in mobile homes. But after reading this short article, you’ll understand the 3 types of mobile home investments: mobile home parks, mobile homes on rented land, and mobile homes with land.

Mobile Home Parks

Mobile home parks are when multiple mobile homes are on the same parcel.  If you own the mobile home park, you may own just the land, or the land and mobile homes.  Quick heads up -- most municipalities require inspections and special licenses for mobile home park owners.  

When the same person owns the home and the land, think of this as a flat apartment complex.  The owner is responsible for everything.  

When the landowner doesn't own the homes, think of the mobile home park as a big parking lot.  The parking spaces are a little larger, and people pay a monthly fee to park their mobile home.  This style requires less maintenance because the homeowners are responsible for maintaining their home.  

This space of mobile home parks has become very competitive with hedge funds buying mobile home parks.  Typically 100 units or larger.  

Mobile Home on Rented Land

When you only own the mobile home and NOT the land, you own personal property.  In most states, this is governed by the DMV.  The owner of the land who allows you to park the mobile home will charge you a monthly fee commonly called lot rent.  The landowner may have set rules about resident age restrictions and subletting.  It's important to talk to the landowner/manager of the mobile home park before purchasing a mobile home on rented land to ensure they support your plan.  The lot rent, and any fees associated with the home, stay with the home.

Pro Tip:  When purchasing a mobile home on rented land, it's important to verify that the seller is current on their payments.  Ask the park manager. 

Ideally, when purchasing a mobile home on rented land, I want the rent or monthly purchase payment I will collect to double the lot rent.  This sets me up for success in the event I have months of vacancy.

Mobile homes on rented land have the most challenge when it comes to financing them and you lose control.  The landowner makes the rules.  I once had the manager contact me on the 5th of the month to let me know by the end of the month I wasn't allowed to own anything in the park which I did not live in.  

Mobile Home with Land

When you buy the mobile home and the land it sits on you have a real estate transaction.  This has become a forgotten way to invest in mobile homes.  This is great because you have less competition, which means more profits for you and me.  This has been my most profitable way to invest in mobile homes. 

The major reason I purchase mobile homes with the land is for the monthly cash flow, I have found residents stay longer when they have privacy compared to living with a neighbor a few feet away.  

I enjoy cash flow, so I buy and rent these aluminum castles, yet I know super profitable fix and flippers like Marc Bracy.  

Now that you know 3 types of ways to invest in mobile homes, it's time to decide which fits your business goals and take action!