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Investing in mobile homes, can be like investing in untapped gold mines. Contrary to popular opinion, mobile homes make excellent investments, as long as investors approach the investment with care and skill. Understanding how to purchase a mobile home and invest in it for profit, requires an understanding of what motivates people to live in mobile homes versus traditional homes.

Traditionally the person living in a mobile home is either low income, or tight on cash. The choice to live in a mobile home might originate from a lack of money, or it might be a senior citizen seeking to reduce living expenses. They could afford a regular home, but don't want to deal with the cost of upkeep on traditional housing. In either case, the motivating reason, is reducing expenses. While mobile homes are notorious for depreciating in value, they are excellent investment opportunities for investors.

Mobile homes should not be purchased as rental units, they should be purchased to buy and resell. A mobile home as a rental unit will create many problems for investors, as they can be high maintenance, as the floors generally need to be repaired after five years. The individual seeking a mobile home tends to want to purchase a home, but money prevents the purchase.

The best way to purchase a mobile home for investment is to buy a used mobile home, at the best price you can find, locate some land to purchase, and then sell the mobile home with financing offered by the seller. For example, you purchase a mobile home, used, for 15,000.00 cash. You locate some land for $5,000 and you place the mobile home on the land. Advertise the mobile home for sale, not for rent and give seller financing. Then you lease the land.

If you require $5000.00 down and finance the balance for 10 years at 10% interest, and a sale price of 30,000.00 you will make a huge amount of money on buying and reselling the mobile home. You will eliminate all headaches of maintaining the mobile home that you would have had, if you rented it, as the buyer assumes all maintenance responsibilities.

You give the new homeowner an excellent opportunity to own their own property. If they default on the note, you get the mobile home back, and you still own the land.

Investing in mobile homes offers many benefits for investors and homeowners. Buy and sell them, don't rent them. That's the best advice I can offer, from somebody who has rented homes for over 20 years.

Learn more about this author, Tammy Stoner.
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