I am a mid-twenties professional who is just getting started out in NC. I have an idea to partner with a friend. We hope to save $10,000 total and purchase a single lot, which we will then rent for $200-$250 per month. The lot would hopefully pay for itself in 4 years, and we could then reinvest this money into purchasing more and more lots.
Is this a viable strategy? We are both concerned about the difficulty of finding a lot with water, sewer etc. at this price (and how to find it), as well as whether or not we could actually find a renter. I like the idea because it is low maintenece and seems like a safe investment, but I am struggling to get a grasp on whether or not it is truly viable or not.
I have seen a lot of material here about buying trailer parks, but never about just buying one lot. Does anyone have any tips or advice?
Who is going to move their own home to your lot? Or are you thinking of a single home on a single lot? In which case, you’re in the home rental business.
I do land home deals from time to time, but this is buying the land, placing a mobile home on it, and then owner financing the whole thing as a package.
With the strategy you’re talking about you might be able to rent a couple RV pads. But like @Brandon said you would be hard pressed to find someone to move their mobile home out there unless you had a big incentive or amazing location.
It’s also just a very uncommon model - you can test it with an advertisement to see if there is any demand…would be surprised if you got more than one call per week.
This is great feedback from you, and from everyone who has responded so far. Thank you so much for being so welcoming.
What do you mean by land home deals? I have seen some discussion on this forum where people buy land and a trailer, and then sell the trailer itself as a rent-to-own and charge lot rent. (At least that is what I think is going on.) Is that what you mean?
As @Jeros said, it may be more practical to just finance a $50,000 asset and do things in a more traditional way. I don’t want to go “too” far outside the box. (Something I tend to do occasionally.)
No I sell the land and the home - it is much more marketable. And I retire the mobile home title to the land too. The MHP down the street will have mobile homes cheaper than me for sale all day long…the LAND component of the deal is the differentiator. My last one sold in a town of 750 in two weeks.