Buying and selling mobiles homes, or in other words, flipping mobile homes, is an investment trend that is beginning to catch on. Because a person investing in mobile homes actually invest in affordable housing, they invest is a form of business that isn’t very capital intensive, but risky, and hence can yield great profits in favorable conditions.
What is a mobile home?
A mobile home is essentially a structure that is prefabricated and built in a factory. It is ultimately transported over to its destination, but can also be moved or transferred to other locations if the need be. In simpler words, it is a home that you can move from time to time, for whatever reasons that you may come across. Given that the demand of affordable housing is on the rise in the United States, mobile homes are becoming an increasingly sought out investment for individuals.
What is the basic process to flipping a mobile home?
In its most basic sense, the process of flipping a mobile home goes as follows: Firstly, either you yourself invest money into buying mobile homes or look for an investor; secondly, you look for potential buyers and study their tastes and choices; thirdly, you make any necessary changes in your mobile home and show it to the potential buyer; fourthly, you close a deal and get a purchase contract drafted; finally, you transfer the mobile home in your buyer’s name and the deal is completed.
What are the benefits of flipping mobile homes?
There are a number of benefits of flipping mobile homes, and the first and major benefit is that the pre-fabricated housing sector requires a lot less in terms of investment and effort from you. You can also invest in multiple properties at any given time, without thinking of repercussions in terms of the overall value of that area going down or up due to multiple purchases in that area.
The second advantage of flipping mobile homes is that affordable housing is in an all time high demand, and more people are looking for mobile homes than ever. Also, if you are not able to flip your mobile home you can always rent it out to someone who needs it.
The third advantage is the less risk involved in purchase and sale of mobile homes because the sector isn’t essentially capital intensive at all.
The fourth advantage is that while many people are demanding mobile homes, not many people are selling them and you would have lesser competition in the market. You could easily become a market leader in this area if you try and work hard enough.
What are some of the challenges involved in flipping mobile homes?
The obvious challenge in flipping homes is that their values depreciate over a period of time and hence anything you buy needs to be sold out quickly otherwise you would be stuck with accommodating for its depreciation expenses. You should regularly be calculating the value of your mobile home to keep its investment and ROI in check.
Additionally, you also need to monitor the condition of your mobile home which depends on a number of factors including: the condition of your mobile home which includes whether or not it requires any repairs or paint done; the size of your mobile home; the location of your mobile home; and any additional features that your mobile home may have.
Another challenge is remodeling the mobile home because obviously every buyer has their own preferences of furnishings and fittings, and remodeling can be a bit expensive task for you.
How to increase your mobile home’s value?
You can do a number of things to increase your mobile home’s value which include the following:
- You can always upgrade the appliances within your mobile home to add to its overall value. A little goes a long way and just by adding minor detail, such as color coordinated appliances in your kitchen, you could charge a premium from your customers.
- You can add solar panels to your mobile home to make it more energy efficient and add more value to it in the process.
- You can add skylights and a patio to make your mobile home more aesthetically pleasing to potential buyers and other clients.
Article Submitted By Community Writer