It’s time for another frequently asked question! This week we’re talking about whether flipping a mobile home is worth it. Time-wise, money-wise, is flipping a mobile home a project that will make you money? Maybe you’re even wondering if you could make a business out of flipping mobile homes.
If you have any experience in flipping stick-built homes, you know that there is no easy answer to this question. Flipping a home can make you a lot of money or it can flop and leave you with an empty wallet. A lot of factors play into whether flipping is worth it or not.
Flipping a mobile home vs. a stick-built
So first off, you’re probably wondering what the differences are between flipping a mobile home and flipping a stick-built home. The main difference is that mobile homes are significantly cheaper than stick-built houses. They’re built with low-grade materials. If you’re not careful, you could end up out-pricing the market.
Used single-wides go for around $15,000, while double wides can go for as low as $20,000 and as high as $50,000. Contrast that with an average price of $200,000 for a stick-built home. The price per square foot is significantly lower.
If you’re planning to update the inside of a mobile home and sell it for a profit, the most important part is not letting the numbers get skewed. Your profit margin depends on keeping renovation costs low.
An investor’s guide to mobile home flipping
Keep in mind that if you do end up flipping a mobile home, you won’t be able to use expensive materials. And your updates may need to be very minimal, such as cosmetic changes only. The best kind of mobile home to flip is a mobile home that is structurally sound and doesn’t need roofing, siding, electrical, or other expensive and time-consuming updates.
Find a mobile home that just needs a bit of modernizing. New paint, maybe updated vinyl flooring, some budget carpet, and little crown molding. Obviously, there could be a hundred different small updates you could make in any given house. The ones above are just examples.
If you flip a mobile home, you’ll be walking a fine line. However, that doesn’t mean that it isn’t possible or that you shouldn’t make a business out of it. Just be sure that, in the end, you’re not forced to overprice the home to try to make your money back.
When flipping a mobile home isn’t worth it
Sometimes flipping a mobile home just isn’t an option. We’ve already mentioned that if a mobile has major issues that need to be fixed, often your return on investment will disappear rapidly. But there are other reasons flipping a mobile home might not be the right move.
For instance, if the mobile home you want to flip is sitting on a rented lot in a park but it can’t stay there long-term, your buyer will have to pay for the home and move it to a new location. Let’s say you have to price the home so high because of remodeling costs that the buyer doesn’t have a budget left to move it. A better option may be purchasing a mobile that is already affixed to its own piece of land. Or, if it’s within your budget, you could buy a mobile home and a piece of land separately, attach the mobile home permanently to a foundation, and raise the value of both exponentially.
Another reason you might want to avoid the mobile home flipping industry is if you have no experience in construction.
To renovate or not to renovate
If you have no experience flipping homes, but want to start investing in property, the best idea is to forget the remodeling aspect. Just find deals on mobile homes, purchase them, and turn right around and sell them for a profit.
If you’re planning to start investing in mobile homes, or you’re looking to create a mobile home buying company, weigh your options. Can you make more money renovating and selling vs. buying and selling without renovating? If you decide to renovate, can you afford to hire contractors to do the work for you? Or do you have time to do it yourself?
Is it worth flipping a mobile home?
There’s no right or wrong answer to this question. Every situation will be unique. Just because we’ve found it lucrative to use one method (buying and reselling without renovating) doesn’t mean another isn’t just as feasible. It depends on your goals, expertise, and budget.
Consider your options, because you do have options! Decide what path is right for you and go for it. To help you out, take a look at our Mobile Home Investor’s Startup Guide to get some tips on how to begin your investing journey.