Used Mobile Home for Sale at $2.5 Million in a Rental Park!! (See, I Told You They Appreciate)
In the late 1970s or early 1980s, I sold 3 double-wide mobile homes from my dealership in Orange County, California to a speculator and installed those units in the Paradise Cove Mobile Home Park in Malibu, Calif.
The speculator had acquired the use of the three rental spaces by purchasing three older mobile homes in those spaces at a ridiculously high price and then hauled them away as salvage. He was also going to pay space rent on those spaces that, at the time, was at least twice the amount of rent as any other rental park that I had ever heard about. I recall thinking what a foolish investment considering all the expenses involved.
Well, lo and behold, I just ran across a real estate company advertising a triple section late model used manufactured home at a selling price of $2.5 million! Land not included! Located in the Paradise Cove Mobile Home Park.
The 2 bedroom, 2 bath, 2300 square-foot home sits atop a bluff overlooking the Pacific Ocean where it captures a view of Santa Monica Bay. “We have sold four homes over $2 million,” says listing agent David Carter of Pritchett-Rapf & Associates told A.O.L. Real Estate. “So this isn’t unusual.”
Surprisingly, the space rent is “only” $2000.00 per month, which is reasonable, compared to other similar mobile home park rents along the Southern California coast.
I get comments from time to time inquiring about the appreciation of manufactured homes in comparison to site-built homes. I always respond that a manufactured home will appreciate under the same circumstances and conditions as a traditional site built home. The primary factor determining appreciated value is, “Location, location, location.” Here’s proof!