What is a Mobile Home?
A mobile home technically refers to a factory-built housing unit constructed before June 15, 1976 — the date the federal HUD Code for manufactured homes took effect. In common usage, the term is applied broadly to any factory-built home in a mobile home park, regardless of age. The legal distinction matters because pre-HUD mobile homes are held to lower construction standards and face more financing and zoning restrictions.
Mobile home parks as investments
Mobile home park investing is a distinct niche within real estate. The investor typically owns the land and infrastructure (pads, roads, utilities) while residents own their individual homes and pay lot rent. This model has several advantages: lower maintenance costs (residents maintain their own homes), recession-resistant demand (affordable housing), and high barriers to new competition (zoning restrictions limit new park development).
Individual mobile home investing
Some investors buy individual mobile homes at deep discounts ($5,000-$30,000), perform minor repairs, and resell them with owner financing or rent them. The returns on invested capital can be extremely high because the acquisition cost is so low. A $15,000 mobile home rented for $600/month represents a theoretical 48% gross annual yield.
Challenges
Financing is the biggest obstacle. Most banks will not finance pre-1976 mobile homes. FHA will not insure them. Insurance can be difficult and expensive. Depreciation is a concern — mobile homes on rented land tend to lose value over time, unlike real property which generally appreciates. Park rules may restrict transfers or require park approval for sales.
Wholesaling mobile homes
Mobile homes can be assigned or double-closed like any other property, but the transaction may be handled as a personal property transfer (like a vehicle) rather than a real estate transaction, depending on the title classification. Work with a title company or attorney experienced in manufactured housing transactions.