How to Invest in Mobile Homes With Land

Real estate investments come in many forms. Buying distressed properties is a popular method of investing in the real estate market. There is one overlooked area of distressed property investments that presents the possibility for long-term profits. Distressed mobile homes that are on land can be used in a variety of ways to make a steady income for you. Subdividing the property can provide multiple streams of income. The natural resources can be sold and the existing trailer can be rented. Extra lots from the original land can be sold or rented. The possibilities all lead to profit.

Instructions

1. Look for mobile homes with land that is large enough to subdivide. Shop around and find the trailers with the most land that will require the least amount of repairs before they can be rented out. Purchase the mobile homes you have chosen for cash. Do not finance any of the properties putting yourself into debt before you get started.

2. Perform the repairs necessary and rent out the mobile homes you have purchased. Do background and checks on every tenant who applies so that you can avoid trouble down the road. Sign a contract with every tenant before you allow them to move into any of your properties. Stipulate the size of the lot that your tenant is renting. Keep the majority of the land for other uses and be sure that your lease contracts give you access to your unused land.

3. Cut down the large trees on your land. Remove and burn the branches and foliage and chop the tree trunks into firewood. Stack the wood in an out of the way to season it. Sell the firewood after it has seasoned for six months to raise extra income.

4. Subdivide each piece of land. Pay contractors to run water, electricity and other utilities to each lot in your subdivision. Apply for deeds for each parcel at your local county clerk's office. Sell off the excess lots to raise money for profit and for future investments.

5. Keep some of the parcels from each piece of subdivided property. Rent each parcel out to other mobile home owners for another income stream. Draw up contracts for these rental deals that relieve you of liability on the property throughout the duration of the land lease.

Tips & Warnings

• All investments involve some risk. Buying mobile homes can cost you more money than you can make back if you do not know what to look for when you first inspect each property.

• Renting a mobile home or piece of land places you in a position of responsibility and liability. Always familiarize yourself with the local codes and statutes involving rental property in general and mobile homes in particular.

• Always have an attorney review any contract you draft before presenting it to a renter so that you will be covered as much as possible.

References

• CRE Online; Raider of the Lost Parks; H.Ray Alcorn Jr.; 2010
• CRE Online; Mobile Home Rehabbing: Your Initial Walk-Through; Michael Scarbrough