Tag Archives: mobile homes

Flipping mobile homes for profit

Posted on by

Fixing up mobile homes offers an opportunity for some to make money:

Photo by Nick Adams on Pexels.com

This is mobile home investing, an unsexy, little-known sector that happens to be recession-proof, meeting a nearly bottomless demand, and earning some of the best returns in the housing industry. Its low price of entry is allowing an entirely new crop of entrepreneur — many of them Black, as the Sellerses are, or coming from very modest backgrounds. (A 2021 survey by the National Association of Real Estate Investment Managers found that 73 percent of industry workers are white males.) With housing costs rising across America, many mobile home flippers are finding the opportunities so plentiful that they’re now training other wannabe real estate moguls in the practice, earning a significant chunk of their income from mentorships and tutorials that help more people like them enter the field.

While they don’t get a lot of attention, mobile homes — “manufactured housing” per marketing and policy wonks, or “trailers” in other circles — are the country’s biggest source of unsubsidized low-income housing, providing shelter to 21 million Americans. As the nation’s housing crisis grows, they’re becoming increasingly attractive to people who can’t afford a traditional site-built home. Between 2014 and 2024, the number of new manufactured homes shipped across the country increased by over 60%, according to census data…

The work does require a lot of elbow grease. Some units just need a good cleaning and a fresh coat of paint; others have rotted subflooring, old insulation, and broken windows that all need replacing. After that, the investor will have to market and sell them on Facebook Marketplace or Craigslist, either outright to a buyer or wholesaler, or through seller financing. Investors say the downsides of the mobile homes business aren’t much different from those of other real estate fields: homes that turn out to be in worse condition than the buyers had thought, difficult tenants, unscrupulous contractors.

The sector’s high returns are often characterized by desperation. Facing a lost spouse or job or some other hardship, sellers are often willing to dispose of a home cheaply because they need the quick cash. Buyers are hungry for something, anything, they can afford. They aren’t looking to build equity; they’re seeking shelter, at a time when both conventional homeownership and rentals have soared out of reach for many. Mobile homes exist in an alternate reality, one where a home purchase can be completed in a day without the help of attorneys or appraisers, where the cost of a used unit floats depending on its actual value to the buyer and seller.

An interesting look at the intersection of flipping culture – who doesn’t want to make money on housing? – plus a big need for affordable or cheaper housing across the United States.

Several questions come to mind:

  1. At what point do the returns on flipping mobile homes limit investor interest?
  2. How many people might be priced out of mobile homes because of flipping?
  3. Does any of this help raise the status of mobile homes which tend to have a stigma in many places?
  4. Would we ever see an HGTV show on flipping mobile homes? (Maybe not given their audience.)

The presence of mobile homes in the Chicago area

Posted on by

Remembering a small mobile home community not too far from the suburban home in which I grew up, I was interested to see numbers on how many mobile homes are in the Chicago region and read about the experiences of people living in mobile homes:

Yes, we do! It turns out hundreds of families live in Chicago’s only trailer park, Harbor Point Estates, which is in the far southeast corner of the city. It sits along the shores of Wolf Lake in the Hegewisch neighborhood, just off 134th Street. The community is so close to Indiana you can fly a kite there, a property manager says.

And beyond the city’s borders, there’s another 18,000 mobile homes in the seven-county metro area, according to estimates by regional planners. Mobile home communities are squeezed between expressways and plopped down in exurban cornfields, from the North Shore to Peotone…

Curious City got a question about trailer parks from a listener interested in affordable homeownership. “What is life like in Chicagoland trailer parks?” the listener wanted to know.

So we visited manufactured housing communities in Chicago, Blue Island and Des Plaines to ask residents that question. And we met people with a whole range of experiences. We found some who had moved to the trailer park as a way to make ends meet. We found families looking for peace and safety and a quiet place to raise their kids. We found residents who liked the trailer park because they could live near extended family — adult siblings, cousins — and others who’d adopted neighbors as extended family. We found people living in their familiar mobile home deep into old age. We found folks looking for a foothold to the American Dream.

Many suburban communities and urban neighborhoods would not want or approve mobile homes. As communities tend to prefer development (if they prefer any new development) that matches or exceeds the prices and styles of existing residences, mobile homes can be hard to find in metropolitan regions.

This also reminds me of sociologist Matthew Desmond’s findings about urban mobile home communities in Evicted. Such communities do exist, their landlords can and do make money, and residents in mobile home communities can face a number of issues.

Yet, because of their cost, they can be a housing option for many. Looking to address affordable housing in the Chicago region? Mobile homes could be part of a comprehensive answer.

(Bonus: the title of my published study on religious zoning in Chicago suburban contexts refers to someone saying that would prefer mobile homes nearby rather than a possible Islamic Center.)

Using preservation to maintain affordable mobile homes

Posted on by

One architect and preservationist suggest mobile homes deserve the attention of the preservationist community:

We talk about affordable housing all the time, as we should, but we never talk about mobile homes or mobile home parks—even though they’re primarily used as affordable housing. When we talk about affordable housing and historic homes as preservationists, we really need to start including mobile home parks in those discussions. They fill a critical gap [in housing opportunities], but they’re also endangered…

[Since most mobile home parks are privately owned], they become too expensive to maintain. To keep them affordable, their original infrastructure usually remains in place while their owners [find temporary solutions for repairs] until the entire mobile home park needs to be replaced. They’re sold off because it’s just too expensive to maintain and the owner is no longer making a profit; these are private places and businesses, and that is a legitimate concern.

Sometimes, mobile home parks are zoned out of their city or municipality because they aren’t wanted. That trend began in the 1950s and ‘60s, when suburbs were growing exponentially, and it continues today. When owners don’t want to own their mobile home park anymore, they sell them to developers who would rather build condos or other forms of housing that don’t have limited profit margins…

In preservation circles, I think it’s particularly challenging because mobile home parks don’t meet any current measure of architectural integrity. They are very flexible spaces, and they could be upended at any time. It would be exceptionally difficult to put them in the National Register, the way it’s set up now, but that ultimately opens up opportunities for the future. I think we need to change the way we measure and create historic places.

I have been under the impression that preservation is typically sought for (1) older and (2) architecturally significant buildings. Mobile homes could fit both of these categories: a number of mobile home communities span decades and they are a unique American form of housing. At the same time, I cannot imagine too many neighbors or communities would be thrilled if mobile home parks were given a longer lease on life because of being tabbed for preservation. Using preservation to keep affordable housing units seems to be a delaying tactic; it may protect units in a time when many metro areas need a lot of affordable housing units yet very few places would want even more mobile home units.

This argument gets at bigger issues: (1) what buildings are worth preserving? and (2) who gets to make these decisions? According to opponents, historic preservation can stall normal processes of redevelopment. According to supporters, preservation can protect significant edifices that may be demolished in the name of “progress.”

How communities limit the construction of manufactured housing

Posted on by

Manufactured homes might be a viable solution to affordable housing but it is not easy to place such homes:

While courts today are unlikely to uphold outright exclusions, barriers for manufactured housing come in other forms. Some towns require manufactured homes be in a manufactured housing community. Others restrict them from residential zones.

Unequal treatment—including aesthetic rules, like a pitched-roof requirement, that exclude mobile homes by default—is common. Conditional use laws require pre-approval before a manufactured home can go up, and often approval is denied. Advocates for manufactured housing lobby for by-right use, which would allow someone to put up a manufactured home without pre-approval.

But zoning issues are a matter of state and local policy, not federal policy, so HUD has little power to influence restrictions on manufactured housing. Still, Mandelker believes HUD could play a role in destigmatizing manufactured housing.

“If they start working on a model state [zoning] law and start funding pilot projects, that would bring some attention,” he said. “I think that would be very helpful.”

Two features of manufactured homes are likely to scare off numerous communities from providing space for many units: (1) the property values of the units compared to stand alone single-family homes (since higher housing values are perceived to be signal a better quality of life) and (2) negative perceptions of residents who live in such homes (viewed as lower-class residents). So what could prompt more local governments to allow manufactured homes?

There are various ways that incentives or sanctions could be used. As an incentive, perhaps there could be some extra Federal money given to communities that provide space for such homes? Or, perhaps those constructing new developments could receive extra opportunities if they set aside land for manufactured homes or paid into a fund for purchasing land for manufactured homes. Sanctions would likely provoke resentment but they could also push multiple communities into helpful conversations.

Ultimately, providing the necessary affordable housing needed in the United States will likely require multiple approaches. Manufactured housing could be part of the solution but it will be difficult to destigmatize it.