Why do I love used mobile homes? Let me count the ways.

One of the first questions I get asked about mobile home parks is some version of this: “So, you just own the land and people just come and set up their homes?”

This hasn’t been my typical experience, because tenants lack the resources and ability to place and set home their own homes. In fact, I have never had a tenant show up ready to place a home in a park. Instead, what happens in practice is that park owners must set up and sell homes to prospective tenants.

Here’s the next question I get: “Is it more profitable to purchase new or used homes?”

New homes are expensive, and homebuilder backlogs can leave a prospective purchaser waiting more than a year to receive one. Used mobile homes, on the other hand, have much better availability, but their quality varies drastically. Understanding how to buy and sell used mobile homes is a critical component of successful park management.

Best practices for sourcing used mobile homes       

The used mobile home market is disjointed, complicated, and messy. These factors make it an “inefficient market,” meaning buyers and sellers often have difficulty connecting with one another. The demand is there, however, leaving an opportunity for those willing to put in the work and find used products that can be re-purposed into a park property.

The best resources for finding used homes tend to be mobile home moving companies. These organizations are not only plugged in on a real-time basis with used homes, but their business model relies heavily on the efficient movement of mobile homes from one place to another. Becoming a good “landing destination” for one or more mobile home movers is an excellent way to cultivate a pipeline of used homes. And since those companies can perform installation, It's also a great way to negotiate the cost of delivery and setup into the purchase price.

How to choose a mobile home with potential

The principal risk with buying used homes is ending up with a unit that is in so much disrepair it’s not worth the rehab expense to get it functional. And it’s not always easy to tell at first glance that a home is “too far gone.” Assessing a unit’s potential is a critical skill that can only be acquired by putting in the time and getting to know the product.

Generally, a reputable mover can be relied on to give a somewhat accurate assessment of a home's condition, but it is still advisable to get “eyes on” any home prior to purchase. Once again, cultivating good relationships with movers is critical here, because a trusted partner will be careful not to mislead a good client that frequently buys home and is easy to work with.

The benefits are more than just financial

Buying used homes will always be more time-consuming than buying new ones, but the financial savings can be substantial. In addition, cultivating relationships with the ecosystem of contractors working in the local mobile home market is crucial to growing your network and influence.

And in the larger scheme of things, repurposing used homes is also a way to participate more actively in the local housing community both by recycling homes that otherwise could become landfill waste, and by employing and interacting with a variety of local players in the greater housing community. Developing relationships in all the markets in which one operates is a necessary element of long-term success; taking the time and effort to do so is always time well spent.