America’s hottest real estate investment is a bargain

When Andrew Keel first laid eyes on the Quail Run Mobile Home Park in Edwardsville, IL, he was so smitten, he moved in—and bought the 67-lot park for $1.34 million.

“I found mobile home parks back in 2015 and instantly fell in love with the asset class, primarily due to the higher than average returns and lower than average risk,” he says. Quail Run, which the Keel Team owns to this day, has “been a fantastic investment, netting returns over 70%.” He also enjoyed living there.

“I learned so much,” he says. “People think it’s full of crime and slumlords when this is the farthest thing from the truth. Most trailer parks are really affordable housing subdivisions, and most of our residents prefer to live here due to the lower costs versus renting an apartment or owning and maintaining a home.”

Mobile homes—also called manufactured homes or trailers—may not seem like a sexy place to put your money, but their phenomenal returns have been turning heads and earning this asset class the reputation of being “recession-resistant.”

“They remain stable and resilient, even when the economy takes a hit,” says Gabe Monfried of GMF Group, which owns and operates 4,300 lots and units across 48 communities. “I think the secret is a combination of factors, including long-term stability, lower operating costs, and the ever-growing demand for affordable housing. We started investing in manufactured housing after recognizing it as an undercapitalized and overlooked asset class. Once we took a closer look, the potential was clear.”

Mobile homes not only offer an affordable entry point for investors, but also have been increasing in value in part because they’re “the only shrinking real estate asset class in the US,” says Brian Davis, founder of the real estate investment club SparkRental. “Municipalities don’t approve new mobile home parks because they don't produce much property tax income.”

Flippers have also been pleasantly surprised by the return on investment of mobile homes.

“We flipped our first mobile home by accident because we never realized the tremendous value they can have,” says Ryan David of 607HomeBuyers.com in Clarks Summit, PA. “We nearly declined the offer because we buy houses, not mobile homes. But we decided to roll the dice.”

David bought the home for $8,000, spent $4,000 on a “mini-flip” with new floors and a fresh coat of paint, then sold it a week later for $34,000, netting about a $20,000 profit after expenses.

“We now look at mobile homes in a totally different light,” he says. “We see so much potential, we started a postcard advertising campaign to five local parks in our area.”

How to invest in mobile homes

Investing in mobile homes may be a moneymaker, but it also comes with potential pitfalls. The home and the land underneath are typically sold separately, and finding financing can be a challenge. Zoning restrictions mean these homes cannot be plunked down anywhere, and lingering negative perceptions may keep these homes from appealing to a broad swath of buyers.

Keel recommends that investors learn the basics before diving in and offers a free guide on mobile home investing to help with things like how to gauge the age and condition of what you’re buying (i.e., a pitched roof means it was built in the 1980s; a flat/round roof means it’s from the 1960s–1970s). Although mobile homes can be found on typical real estate sites like Zillow, Facebook Marketplace tends to have the best deals, Keel says.

Mobile homes are typically on the affordable end of the spectrum, but some are much more upscale and glamorous. Fashion designer Betsey Johnson once lived in a pink, floral-printed mobile home in Paradise Cove, a park in Malibu, CA, that boasts tennis courts, a guarded gated entrance, and beach views. She sold it for $1.95 million in 2019.

“What might surprise people is how diverse and stable manufactured housing communities are. They’re home to a mix of residents, including working-class families, senior citizens, and essential workers, and many stay for years,” points out Monfried.

“Unlike younger renters who often move for school or work, these residents tend to be more rooted,” Monfried adds. “Beyond affordability, these communities offer a sense of connection. With shared spaces, residents have opportunities to build relationships. That atmosphere often leads to higher resident satisfaction than you might find in a typical multifamily building. We love buying and improving these communities. It’s been incredibly fulfilling to see both the financial and social impact of our work.”