What it’s really like to invest in manufactured homes

When Leo Young first heard about manufactured homes, his mind jumped to “all the stereotypes,” like the sitcom Trailer Park Boys and Eminem in 8 Mile. “Twenty years ago, people didn’t want to touch this due to the stigma,” he says. Today, Young manages more than 500 manufactured housing units nationwide at Cornell Communities and calls the sector the real estate industry’s “$500 billion blind spot.”

The pros: “As an asset class, manufactured housing communities are attractive because it’s a simple business model: You rent out the land and maintain the infrastructure,” he says. One of his recent acquisitions for $3.35 million was Emporia Estates in Emporia, VA, with 94 occupied lots producing an annual cash flow of 8% and projected annual returns of 15–20%. Manufactured home communities are also famed for being recession-resistant.

The cons: “You’re usually working with old properties with a lot of deferred maintenance,” Young warns. Zoning regulations also vary by area, and certain states are more welcoming than others. “Historically, many local governments restricted or prohibited manufactured homes in areas with site-built homes,” he explains. Virginia recently passed laws leveling the playing field. “This reflects growing recognition that manufactured homes are a practical solution to Virginia’s housing affordability challenges.”

His advice: “Start with a community that’s manageable—i.e., under 30 units—and ideally on city utilities,” Young says. “Make sure to do your due diligence on the property to make sure you budget for any CapEx requirements over time, and understand the regulations around ongoing operations and bringing in more units.”

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