Manufactured homes are only considered for a mortgage if the axles are removed, and the structure is placed on a concrete foundation or a basement. No longer are you limited to a location. I am not trying to sound mean but the stigma and the picture you are painting in your mind is what frightens me the most, not the actual thought of buying the home. And while they can technically, physically be moved, moving a manufactured home would be just as expensive as closing costs on a real home, with additional legal headaches like getting permits and easements. In my search for a new home, I've looked at everything from $150k to $250k. This is due to the long-time stigma of mobile homes. I do worry about the increase in rent, even worse, some investor offering them a crazy amount of money to turn it in to a Costco or shopping center. The inside has never seen a pet, smoke and the flooring still looks new (it was built in 2004). This video has been taken from the www.RealEstateCashFlowFormula**** Is a New Mobile Home a Good Investment The Costs of Mobile Homes are Lower than Single-Family Homes. Flipping mobile homes can be a great investment if you find a valuable property, can make some slight repairs and touch-ups, and then sell it on the market for a higher price. From maintaining your yard to overseeing preventative repairs to dealing with big stuff like leaking roofs and broken furnaces, there’s a whole lot that goes into keeping your home in a good and livable condition. Baby boomers on fixed-income are retiring with little savings, and mobile homes are a good solution for the affordable housing deficit.   While the wheels are removed, the steel chassis usually isn’t. Mobile homes can offer a great return without any leverage or appreciation. When he gets home from work we will discuss this again so we can set a more financially sound goal. Or am I just worrying about nothing? The reason you can achieve such good returns is primarily because as a mobile home park owner, you are renting land and therefore do not have the expense of capital improvements that a housing landlord faces. I live with my GF who works part-time and is doing the same, taking classes at a local community college. Have you considered having a tiny home built on a piece of land you can buy? However there are numerous instances where a manufactured home will certainly increase in value over time. Even more is the flexibility I saw with mobile homes. I think that even 20 years ago, maybe manufactured housing wasn't as good as it is today. And, no mobile home … Are Mobile Homes A Good Investment : Investment Opportunities In 2011 : Investment Property Down Payment. We paid 16 bucks a year when similar properties would be paying close to 1.5k just up the street.The worst part of living in a mobile home was not the maintenance or the neighbors. Are Mobile Homes a Good Investment? Never, ever, ever finance the furniture. A metal roof and a golf cart! All of these factors will make your home a good investment. Features of the Modern Mobile Home. But in 5 years I can save and invest way more than I could with a $1200/mo house payment. 21. We won’t assume that either a traditional home or the manufactured home will be a “good” investment; we are trying to get you to look at the costs over the next several years. The average mobile home will cost you close to 100k when you get done, and it's worn out. - Manufactured Homes Trending As Preferred Option! So, my fiancee and I are currently renting an apartment while I attend school. The problem is that, for one, I will transfer colleges in a year, and I dont have many local college options so a move will be in order within a year. Rent and put aside whatever you can for a home some day. Mobile homes can appreciate but being in a park limits the rate; Mobile homes set up in a park may be harder to sell than a traditional house. You mentioned rent. Her apartment is more expensive than the mobile home she had before. Park owners can sell the park with very little notice. Make sure to buy in a good area, a good park, and in an area that is not over-built. Make 110-130k a year and just had no use/time for house. Ten years, you buy a whole new a/c. Mobile Homes are a good investment IF you take care of them. And this is before mentioning that the rent for the space the manufactured home sits on is overpriced in comparison to real renting for the same space (when factoring in not having to buy and maintain the structure). Make sure the home suits your needs first and foremost, but also is desirable to a lot of people in general. Lots of people make good money on a home purchase, but as you say, the majority don't. According to Apartment List, 17.7 million Americans, about 5.6% of the population, live in mobile homes or trailers. In this video John describes the rash of mobile homes that are falling into foreclosure and what help Investors can provide. Read on to find out why a mobile home may be a good investment for you! Each section will require its own serial number or vehicle identification number. 11. And if you don't own the land it's on, it will become more and more of a liability and cost sink to you as the home gets older and more difficult - if not sometimes legally impossible - to move. Most real estate investments require a highly leveraged mortgage position and a good appreciation rate in order to provide a solid ROI. 3 Jan 2020 Bruce Hill. The memories of that make me stand firmly against it. Manufactured Homes . Manufactured homes on land you don't own come with all the downsides of renting (lack of control and stability), with none of the upsides. [Editor's Note: This is a guest post from Rachel Hernandez, the spouse of a physician and a real estate investor who has written a book on investing in manufactured housing entitled Adventures in Mobile Homes: How I Got Started in Mobile Home Investing and How You Can Too! I honestly don't think I'll lose money if I sell it in 5 years but I doubt I'll make money either. I have personally seen a mobile home burn down within 30 minutes. Mobile homes don't appreciate. Yet, the end product ensures the investment is a promising one, especially since manufactured homes are constructed to withstand wear and the elements. Mobile home parks are not a thing of the past. Mobile homes can be sold by themselves for just the home or as a package (just like traditional real estate) attached to a piece of land. Other than that, mobile homes are a terrible investment. And I'm not worrying about paying my house payment because her part-time job would pay the bills if things ever got really bad with my mental health. Mobile Homes Are Inexpensive To Renovate – In our experience, we are able to completely renovate a mobile home for investment at a fraction of what it costs to do a traditional home. I'm 43, divorced, one child who's about to turn 17. I take a few medications that aren't cheap and I have embraced meditation and minimalism. Her apartment is more expensive than the mobile home she had before. Mobile homes are sometimes placed in a mobile home park or on leased land. We dont have great credit so I just see it as a bad situation all around. I struggle with PTSD so I minimize my triggers like stress, clutter, drama and chaos. Park home ownership has really become a popular way to live in the UK. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. MHL features beautiful homes and provides helpful information for buying, remodeling, decorating, and repairing mobile and manufactured homes of all makes and models. I think buying a mobile home will leave you behind the 8 ball...much more than renting an apartment would. It's an RV park, much different than a trailer park. This is what really scares me. But they might not. You usually do not think about the car home when you think about investing in real estate, but they really can be a smart choice. The reality is that a manufactured home is generally a great investment. Modular homes tend to be cheaper than traditional homes, so they might make a good investment. Dave explains that it's because mobile homes go down in value. You can't just hitch one up, haul it around on public highways, and drop it on any old plot of land. If you don't mind the lifestyle, do your thing. You can work out most of the figures quite easily, what is the going rate (at various times of the year) for the caravan (this will vary by site and size etc but you can find out easily enough) and then the only tricky bit is working out the occupancy rate, ie how often will you be able to rent it out. I can't sublease which is okay, however, I know the prices people pay to come visit here and $50k for a vacation home is a drop in the bucket. For those of you unfamiliar with Section 8, essentially the government pays a landlord rent on behalf of low-income tenants. This style of living is where its at. Never buy anything they cut the wheels off and take with them. Mobile homes, also known as “manufactured homes," are built in a factory and placed on a trailer chassis to allow them to be moved. Because mobile home parks allow investment companies to acquire more units for each investor dollar (as discussed above), the risk for loss decreases. Depending on how the state you are moving to defines a mobile home, you might also have cheap property taxes. You can't decide you've had enough of the landlord and decide to break your lease, because that hunk of metal is still on their land. Why Invest in Mobile Homes in 2020? I don't think you're losing your mind. I'm speaking/writing from the perspective of someone who lived for years in a mobile home's not a good idea if the mobile home is old already. Dave explains that it’s because mobile homes go down in value. Plumbing sucks. For example, in 2005, when my wife and I lived in Tucson, Arizona, we looked at houses and it was clear we were in a real estate bubble. He says to buy a mobile home and sell if anything comes up, which freaks me out. Changes in value over time. The sinks are ceramic, the walls are sheet rock and you feel like you are in a stick built home when you are inside. Photograph: Stephen French/Alamy My monthly living expenses will be less than $500 and we make close to $80k yr. So after a lot of praying and this long post, I'm buying a mobile home. If I buy it, I will keep it forever and use it as a vacation home since it is in a vacation destination. Why Invest in Mobile Homes in 2020? (Of course you know this - I'm more explaining to the thread.). Press J to jump to the feed. I think it depends on what your goal is as to whether or not it is a good investment. So, what do you all think? Manufactured homes don't maintain value, because the home doesn't maintain. It is an RV campground, not a trailer park so we are talking maybe 12-14 mobile homes and the rest are campsites. Hypothetical example, if Facebook wanted to expand their campus even further into East Palo Alto or if Google is looking to expand into the Alviso area in Santa Clara county, they'll have to start buying up land in the area which includes mobile homes. This is why you should consider investing in mobile homes this new year. If you own the land, now that's real property and could be considered an investment. Join our community, read the PF Wiki, and get on top of your finances! Past that - good luck. If you do, it takes a crud ton of work to fix. He doesn’t even own the land which would hold value. Debbie wants to know why Dave tells people not to buy mobile homes. You can sell it, but typically for less than you paid, and it is a pain because a lot of people don't want a used one. are mobile homes a good investment For years, mobile homes have been the butt of jokes—and definitely under the radar of most real estate investors. Secondly, I have heard nothing but bad things about buying mobile homes, such as that they lose value over time and that they are a pain to sell. Beach house properties are substantially pricier than similar homes located inland. That number continues to rise – and for good reason. Haha, right! I've really focused on myself since my divorce. Mobile homes. Investment appreciation. Still, to make sure you get all the benefits that come with owning foreign real estate, you do need to understand the tax consequences both where you are buying and back home. Couple that with a nice, new metal roof, vinyl siding, a golf cart and most contents inside, we agreed on $63k which I'll just use my savings to pay. I'm not a slave. Living within your budget. We are paying abut $50k for the single-wide, the rest is extra stuff we are including that they are selling. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. I suspect a lot of the supportive comments are from people who have never had to deal with manufactured homes. Bad times. Just because they are prejudiced towards Christians doesn't necessarily make them good people. Moved into a sort of camp ground with mobile and stick built homes on land I own paying taxes on. I know a house is a better investment but I've seen a lot of people lose on homes because of closing costs, realtor fees and the fluctuation in the market. Electrical problems. This is the exact situation many mobile home owners who bought a NEW mobile homes between 2000-2010 are in right now. With a working knowledge about your buying power, dream home ideas, family needs, and others, you will be able to make an informed decision. There are millions of people living in mobile homes in the country, and the numbers are growing daily as people look for the most affordable housing. As mentioned earlier, the mobile home park investment industry, for the most part, hasn’t been infiltrated by more sophisticated real estate investors. Thank you, we're super excited and that's crazy coming from a 3800sq ft home I had custom built back in 2006. Nationally, indicators point to the manufactured homes sector returning to the robust real estate growth numbers of the 1990s. Many of these buyers did not fully understand the repercussions of the loans and mortgages they were agreeing to. In other … Manufactured homes are things you purchase because you're destitute and intend to die in them during a bad retirement, leaving the liability behind for someone else to take care of. Beach house properties are substantially pricier than similar homes located inland. No single wide is worth $60k, even new, let alone used. I have some, the ones I found were too small. I say lets just wait until I graduate, get married, and find employment before any big purchases. Are Manufactured Homes a Good Investment? QUESTION: Debbie in New York from My Total Money Makeover wants to know why Dave tells people not to buy mobile homes. There is a price difference between a stick built home and a manufactured home, but I think that part of it is efficiency. Still, there is little that compares to being able to order a new home exactly how you want it. The seller is asking $50k for the home. Also, since you're not buying it new, someone else already took the big depreciation hit. I love going on fishing trips and traveling. Just be prepared to handle the downsides. Mobile homes are built in factories and placed on trailer chassis that make it possible for them to move. So if you suspect home prices are topping out, it may make sense to buy a mobile home just to keep your investment in real estate to a minimum. One of the most well known personal finance authors is Robert Kiyosaki. We fell in love with the home, it feels right in our hearts and it fits our lifestyle. Cookies help us deliver our Services. I have thought of that and I plan to save/invest most of my earnings. A manufactured home is built in a warehouse on an assembly line. I really dont have a problem with renting for the time being because we really dont have the money, as I see it,to buy any time soon. This is why you should consider investing in mobile homes this new year. They either have square footage requirements and/or specifically say stick homes only. I'm thinking about putting 14" dubs on it, maybe a body kit?? We won’t assume that either a traditional home or the manufactured home will be a “good” investment; we are trying to get you to look at the costs over the next several years. I live in a tourist town in the mountains. You've got a cheap piece of crap held together by 2x2s, little insulation, a tinderbox-in-waiting, and heaven forbid if that thing has a sunroof. It seems like you've put a lot of thought into it, and I can't argue with the logic. Low Turnover. Thank you. As you analyze whether a mobile home is a good investment for you, there are a couple things to keep in mind. You may not have thought to invest in mobile homes before, but it could be a profitable choice in 2020. I like to think of the trailer as a tiny home, despite it being 1200 sq ft. That's what makes it different from a real house. I think it’s a great idea. And from what I understand, don't you rent the land it sits on? It's also very well insulated, so it stays warm in the winter and cool in the summer. Compared to traditional, site-built homes, manufactured homes offer more bang for the buck in terms of dollar per square foot. They are like cars. In these cases, the owner rents a space or leases land, but owns the mobile home itself. Not bad - just not as great as it seems. Needs carpet. A mobile home isn't an investment at all. In Delray Beach, a popular beach town in Florida, the median house price … Ours was the fire risk. In an ideal world, we could all buy pre-owned mobile and manufactured homes and bypass dealers completely. It also means less critters that make their way inside, or water when it rains. Mobile Home Living was created in 2011 by Crystal Adkins after buying her first home, a 1978 Homette single wide. Manufactured homes are inexpensive and very capable of being financed at low rates, which automatically makes them very appealing to many consumers. Please tell me that $63k includes the land it's on. You can sell it, but typically for less than you paid, and it is a pain because a lot of people don't want a used one. Mobile Homes Rentals Offer A High Rate Of Return (ROI) – A good return on investment is the pillar rule for wise investing. There's really nothing wrong with renting, and it's pretty much the best choice financially for you at this point in time. I grew up in a mobile home and, from what I remember, it was nothing but a money pit in the end. Section 8 Vouchers Used Toward Purchase of Mobile Homes. Mind you this is in Illinois near Chicago where taxes are insane... mine are 800/y +100 hoa and I own the place outright. High quality – Usually, the quality of manufactured homes is as good as or even better than traditionally-built homes. All this applies to a new mobile home....a used mobile home is a different story, but very "used" is the condition always. A good investment is something that will pay you more than you paid for it. The home is a Norris which is Clayton Homes top of the line. EDIT: Thank you all for your responses! In 10 years I know I could retire if I do not take a hit in my salary. Loved by pensioners, mobile housing is also fraught with rogues who prey on residents Park homes can appear good value – but it’s worth doing your homework. You know going in you're not going to be making money on the purchase long term, but since you'll be saving quite a bit in monthly expenses, you'll essentially be making money there. Mobile home parks should be viewed as an affordable housing solution and delivers a stable tenant base for regular income. Buying a mobile home in most states is just like buying a vehicle. If you're planning on moving soon, you should just stick with renting. It's just not worth it. According to the author and lead analyst of the Phoenix area housing market, Mike Orr, he states that “the fastest appreciation over the last 12 months has been experienced by mobile homes.” The numbers show just what a good buy a mobile home can be. If anything that should go up as long as my mental health holds out. It's a beautiful place and the few neighbors we have are mostly retired. Most mobile homes are set in mobile home parks or on leased land. When you have a vacancy, you are not marketing to the general tenant population. Are Manufactured Homes a Good Investment? Popular Posts. Plus with it being in a campground and not a trailer park, I honestly think selling it will be easy. Make sure the home suits your needs first and foremost, but also is desirable to a lot of people in general. And definitely some of the friendliest people you'll ever meet, plus we have a pool :). The other issue was land restrictions, they are both tiny home friendly. Are mobile homes actually a good investment? Mobile Homes Are Inexpensive To Maintain – The systems in a mobile home (plumbing, HVAC, electrical) have much easier access than in a stick-built home. Related: 5 Strategies to Add Mobile Homes to Existing Mobile Home Parks. Seriously, they give you a loan with a variable interest rate and at some point will sell your home's loan to someone else and then they will say you skipped a payment during their transition, hoping they can double your interest rate right now and lock it in at 29%. Are Mobile Homes A Good Investment : Investment Opportunities In 2011 : Investment Property Down Payment. Please be aware of that if you need to run space heaters. Being a homeowner is a lot of work. A Good Investment. 6. Just needing some second opinions. Reasons Why Mobile Homes Are A Good Investment. The current mortgage is aroun Enjoy and congrats on the new home. Mobile Homes are a good investment IF you take care of them. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. ... More than 50 parks in a 50-mile radius is a good inventory. Buying an entire mobile home park can be a lucrative investment. While investing in mobile home parks can be quite lucrative, actually getting into the market can prove to be quite challenging. I appreciate your post and I respect what you are saying. Because they don't own the land on which their home resides, they are not deemed to be owners of property in the full sense, and have only a right of tenure under the 1983 Mobile Homes Act. Even more so, you always have the option of attaching or un-attaching mobile homes and vice versa. The only time buying a mobile home make sense is if the land under that mobile home will be worth a lot of money in the future. RV parks vary considerably depending on management - are they going to be there for the next 5-10 years? You will probably see a lot of people with their memories of what a dumb their trailer/manufactured house was, and it was probably true. Press question mark to learn the rest of the keyboard shortcuts. Living within your comfort zone, makes sense to me, win win. Outside is just as nice with the vinyl siding and the type of metal roof you see on log cabins. This usually means the owner needs to pay park or lease fees. I do worry about having to find another job in my area, it's mostly restaurants and shopping here . So you're paying rent, plus paying the mortgage on the mobile/manufactured home? Not to mention the $120+ I'd pay in interest over that 30 years (granted I'd pay it off earlier). Press J to jump to the feed. It's not right for everybody, but maybe it's right for you, and that's all that really matters. That's what makes it different from a real house. Manufactured homes are an affordable housing option for many homebuyers, and with today’s technology, they often feature the same amenities and appeal as traditional stick-built homes. In the past, these homes have been referred to as “mobile homes” or “trailer homes.” I understand his frustration but when youre putting a large amount into something, it better be worth it. I knew that the value of homes in the area that I’m in won’t go down, so essentially I’m treating my home like a bank account, with a potential for investment upside. According to Apartment List, 17.7 million Americans, about 5.6% of the population, live in mobile homes or trailers. Parts can be ordered online or a local hardware store. You can't just pack up and move later, because you have that giant hunk of metal to deal with. You have to target your marketing efforts to mobile home owners or to tenants who want to rent a mobile home from the owner. Thank you for your response. A mobile home is not an investment. Investing in mobile homes has become a highly lucrative practice in the housing industry and with good reason. Park homes are manufactured to last around sixty years. If you're looking at older mobile homes, you have to be a good judge of whether the place has good bones. The elderly gal who lived there barely made it out alive. However, with the baby boom, this seems to be a non-issue these days. I have and we actually LOVE the lifestyle. They make prefab homes that you can have delivered and set up on a build site. Funny how life changes us. He says it will save money but thats not what I remember from living in one. Mobile homes might not be expensive, but with the right strategy, they can certainly be a lucrative investment. Meaning, they’re a single owner and probably don’t have sophisticated records. By using our Services or clicking I agree, you agree to our use of cookies. You be stylin' fo' sho' in that. There is a fundamental difference between a trailer park and a mobile home park and the people on each type of site behave very differently from each other.A trailer park is a scenario where a tenant could hook up their trailer and simply drive off into the night almost as and when they please, which would present a problem if they owed rent and other bills.Residents in a mobile home park and living in a mobile home are in fact most … This means the demand for mobile homes in well-managed parks is increasing as the need for affordable housing continues to grow. Nearly every property was a good deal and great money could be made. I am extremely hesitant to purchase anything that you couldn't resell for what its worth. A manufactured home placed in a land-lease community, also known as a mobile home park, is evaluated as personal property with the land not considered in that evaluation. I work in IT and I'm always working on continuing education. On the other hand, you can get a 902-square-foot mobile home with three bedrooms and two bathrooms for approximately $27,000, according to Mobile Homes Direct 4 Less. To make things more fun, mobile homes are full of parts that you can't buy at a normal building supply store; they're all odd sizes and funky shapes. Is a single wide going to be enough room for the three of you? This may be difficult to come by as most mobile home park owners are mom-and-pop shops. All of these factors will make your home a good investment. Start your research with the legal requirements to run this kind of business in your city or state. It seemed everytime we turned around we were peeling back the metal walls like it was a sardine can to fix a leak.Downsides - you have to maintain things, you cannot let things slide. Many of these buyers were not ready to be home owners.