Used mobile homes, if left in a state of disrepair, can become dangerous eyesores. With some modest financial and time investments, though, used mobile homes can be transformed into viable housing for tenants and a considerable income for you, the investor. This article will explain make money fixing up used mobile homes.
Instructions
Make Money Fixing Up Used Mobile Homes
1. Allocate enough space for this investment. Whether you intend to simply fix up mobile homes and sell them or start your own used mobile home dealership, you will need plenty of land to accommodate the mobile homes you rebuild. While some mobile homes may be repaired on site, many will require removal from their lot and must be towed--using either your own truck or a rented transporter--to your property for renovation. For renovating one home at a time, 1 acre of land should be sufficient, though large parcels may be necessary for more complex undertakings.
2. Locate an inexpensive used mobile home. After some use, mobile homes lose a significant amount of their financial value. Many homes--especially older models built before 1990--can be had for less than the price of a used car, and owners of mobile homes with serious issues or in need of extra renovation are sometimes willing to simply give them away for free. To find a used mobile home, browse online sites like eBay, your local Craigslist listings, or newspaper classifieds. A drive through a mobile home park may also yield some prospects, though many parks are private and not receptive to unfamiliar passersby.
3. Negotiate with the owner. When the owner of a used mobile home decides to part with the home, there may be some stipulations to keep in mind. Mobile homes that will remain in a mobile home park, for example, may require payment of a monthly "lot rental" fee that can amount to hundreds of dollars each month. Some owners require that the home be moved from the lot within a specified period of time, and still others may specify that, while the mobile home itself is for sale, add-ons like porches and carports must remain in place. Before signing any agreement with the owner of the mobile home, be sure to become familiar with all applicable fees and restrictions.
4. Move the home to your lot, if necessary. If the mobile home must be moved, use a truck with a powerful engine or hire a transporter to move the property. This task can be expensive and dangerous, so building a strong relationship with any assistants or transport companies may work to your benefit.
5. Complete any necessary repairs or updates. When the property is secured, begin remodeling the mobile home to repair any damage, update obsolete appliances or fixtures, apply fresh paint, and otherwise improve the appearance and integrity of the property. Keep in mind that mobile homes sometime make use of special lightweight materials (due to their mobile nature), and some older models may require extensive repairs in addition to modernization. Keep track of any expense related to the improvements you make, as this information will be useful when reselling the property.
6. Comply with all local laws. Some municipalities require special registration stickers and other considerations for mobile homes. Check with your local tax collector or county clerk to verify that any necessary taxes or endorsements have been obtained. In addition, it is critical to be in compliance with any local regulations regarding inspection of mobile homes or homes for sale; these regulations vary from area to area, but your local county clerk or municipal website should have information on steps to take before selling a mobile home.
7. Sell the rebuilt, improved or refurbished home. Set a price for the used mobile home that takes into account your acquisition and transport costs, all costs associated with the renovation process, and any licensing, subcontracting, or inspection fees you may have paid. Depending on where the used mobile home is located, you may choose to list it for sale in local media outlets, in online resources like Craigslist or by simply putting a "For Sale" sign in front of the finished product. If you chose to leave the mobile home on a lot in a mobile home park, you may have the option of renting it to potential tenants, possibly increasing the property's profit potential.
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