Questions about Investing in Mobile home on land

Ok, i have found a 2+ acre piece of land that has power, water, and septic already on property, there used to be a trailer on the property that burned down, the land isnt listed by an agent yet, just some guy had a little sign up on the side of the road. after talking to him, he doesnt know how much the property is worth, and just has no use for it. so i am thinking about offering him about $50-60,000 for it because thats how much land is going for in this area without water, septic and power. i am also working with a palm harbor home agent that is trying to find me a faily new (2000-2003) repossesed manufactued home, that i am hoping to get for around $50,000 moved and setup. then maybe a little landscaping and a driveway, so hopefully i can get all this for no more than $110,000 invested. after checking a few listings, fairly older manufactured homes are going for between $150,000-$180,000. so i could potentionally make around $60-70,000. has anyone had any experience with this? or have any comments? am i overlooking anything? this will be my first real-estate investment, and it seems to be a good one. thank you


Just a couple of quick thoughts.

You need to find out if there are any ordinances prohibitting manufactured housing in the areas. Just because there has been a trailer on the property in the past does not mean that you can put one on it now. The original home may have been in place when the laws changed and as such could not be forced to change.

If the owners do not know what the property is worth, then try offering them $40,000. You never know when the owners will accept your offer just so that they don’t have to hassle with it any more. You can always increase your offer if they do not accept the original one, but you can never go down.

The property is 2 acres. Could you split the property, sell 1/2 with a MH on it and put in water and a septic system for the other half and then sell it? If so, then you might be able to make $100,000 instead of $50,000.

Good luck with your investing.


I agree with Wilson’s point about checking the ordinance. I would also verify what the requirements are of the current zoning–permitted uses, minimum lot size, width, etc. I think I would also talk with the zoning officer to see what, if any, zoning history there is on this parcel and for any “grandfathering”. If you decide you want to buy the parcel, I would have a RE attorney draw up the contract with the appropriate contingencies, such as an upfront due diligence period and perhaps a subdivision contingency (if applicable). You don’t want to have to close on the property until/unless you can use it as you want.

Well i do know that i cant subdivide the property, the minimum in the area is 5 acres now, i was looking into a piece of property 9.85 acres and was told i wasnt able to partial it off because it was under 10. the main reason i found this out was because my first idea was to put a manufactured home on the corner of a lot, and build my house on the main part and rent out the manufactured home, but i guess i can only have 1 dwelling on the property because its zoned R5. :frowning: im also about 99% sure i can put a mobile home on the property since almost all homes in the area are manufactured homes. i greatly appriciate the replys, please continure with any other comments and suggestions. i think im gonna go make this guy an offer on the property either this week or next, i need to go apply for a loan, and see what i can even get approved for. i went and looked at the land again, but it was 3am and dark (just got off work). there was a car in the way, so i couldnt drive down the little road nor really see much at all, mostly trees. so i think i am gonna have to clear alot of trees out of the way, and havent had any experience in this, dont know if im gonna need permits or, how much a new septic system will cost if the one currently is not big enough or working, i want to dive into this but not blinded, i dont want to get into this not knowing what im gettin myself into, and end up losing alot of money and time. im 21 and i am doing this as a business venture with my parents, they are co-signing for anything that i need, but i am having to do all the legwork, so i dont want to screw up here.