Buying 1 lot with a home on it to resell only home

mobile home university
1

I stumbled across an ad for a land lot in a nearby town with a decent mobile home already on it for $8,000 cash.

Is it possible for me to buy this lot with home, and turn around and sell just the house for $8,000 self-financed of course and charge lot rent forever?

It would seem people would pay higher lot rent to not be in the park. Plus, I don’t have to submeter. I’m getting the land with house for cheaper than I can buy and move most mobile homes to my current park. Has anyone ever done this?

2

I looked into this, and the biggest issue is that your Buyer would have neighbors on both sides of them who own the home and the land, which may be a turn off for them. You’re looking for a Park tenant in a community full of land owners, which is may be more difficult to find.

You also cannot control the behavior of the adjacent neighbors. If they decide they want to Park 9 cars in the yard and have aggressive breed dogs you cannot address that.

I think it can be done for sure, but the model is odd and may only work in certain markets - I guess if there is enough demand I would give a try and if it didn’t work out owner finance the land + home.

3

Thanks jhutson

I’m guessing it’s just like bad neighbors anywhere, you build a tall fence.

4

Check with local RE and mortgage brokers - home and land packages sell rapidly in many markets.

You give up the long-term land lease, but since you’ve bought the home and land at a low basis, your profit should be worth it.

Hint: don’t buy it - have your Roth IRA option the land and any improvements. The profits go into your retirement account tax-free.

Keep us posted,

Mike

5

How do you option it into a Roth? I need to start doing that

6

I’ve done this and would do it again in a heartbeat if I could find the deals. Your find sounds like a terrific one!

7

I’m glad to hear you have done it. I really like the idea and want to pursue that route once my park is full.

8

Contact your Roth IRA administrator. They can (usually) help with the paperwork.
If you need assistance beyond them, please let me know.

Mike

1 Like
9

Do you have a self-directed Roth? Like from paycheck IRA?