In almost every city in America you will find some supply of mobile homes. These mobile homes and manufactured homes can be located inside preexisting parks and attached to private land the owner of the mobile home also owns. In many cities the highest density of these factory built homes are concentrated outside of the downtown areas. In fact traveling outside your city limits can afford you some great opportunities for investments.
Below is a quick common-sense grouping of most towns and cities around the country. Please keep in mind that this in no-way relates to every city or town nationwide. Instead this is simply a guide to help you understand why and where some mobile homes will be located in your area. Imagine each of the “zones” below expands in a 360 degree radius around your city.
In most cities and towns the and highest use of this land is not going to be a mobile home park.
Downtown land typically holds high priced real estate, commercial buildings, downtown condos, apartments, nightlife, shopping, and bars. It is for this reason that any mobile home parks that were located downtown have already sold-out and are no longer there. In short there will not likely be a good supply of mobile homes located downtown in most cities.
Once you start to travel a few miles outside of downtown you often reach more residential type of housing.
In many areas surrounding a downtown you may likely find newly improved/rehabbed areas, older built homes, and even slums. Depending on the land value and population you will likely find a few mobile home communities or neighborhoods around this area.
Most mobile home parks in this zone will have higher priced lot rents due to the proximity to the city. The supply of motivated sellers will typically be low here as this is a highly desired area in most cases and buyers will be ready to pounce on most seller homes.
This is the zone around your city that will start to hold more and more mobile home parks and neighborhoods.
Typically called the suburbs, land value is reduced thereby making park ownership profitable and feasible for park owners. In addition, for us mobile home investors we will find a lower lot rent payment monthly, typically a lower demand of cash buyers, longer “on the market” time, and a lower selling price compared to similar mobile homes located closer to the city. This will typically be a good area for deals as the supply is higher than closer to downtown.
You will discover similar findings here as the previous zone. This zone is very profitable too.
This area is more a subjective zone than a definitive land area.
I like to class this zone as when single family homes come with acres of land versus a small subdivision-sized lot. When you get into these areas you will find the occasional mobile home park here and there. In these parks the lot rent monthly will be drastically lower than any parks closer to town.
Additionally, these parks may contain older homes in rougher condition. The buyer demand for this area will be lower than closer to town. The buyers in these areas will be attracted to the nature-type of “country living”.
Depending on which navigational direction you leave from your city’s downtown and drive straight you may find yourself in a neighboring city instead of a country setting. I make this obvious reference to make sure you understand that each area is unique and only by being in the streets can you determine you own investing turf.
In conclusion know that you should become the local authority and expert in your own county (or parish) and the surround counties as well. Know what is for sale nearby and beyond zone 5. Only by understanding what all is for sale can you have the clarity to focus on any specific homes and sellers to help create value with. Aim to help everyone but only more forward with the most profitable and easy to sell homes.