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RV parks vary considerably depending on management - are they going to be there for the next 5-10 years? You be stylin' fo' sho' in that. Is a Brand New Mobile Home a Good Investment? A metal roof and a golf cart! 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. And definitely some of the friendliest people you'll ever meet, plus we have a pool :). Depending on how the state you are moving to defines a mobile home, you might also have cheap property taxes. The elderly gal who lived there barely made it out alive. Many of these buyers were not ready to be home owners. Make sure the home suits your needs first and foremost, but also is desirable to a lot of people in general. So, my fiancee and I are currently renting an apartment while I attend school. One of the most well known personal finance authors is Robert Kiyosaki. Depends where you are at. Appreciation of both manufactured homes and site built homes are affected by the same factors: the stability of the community (subdivision, neighborhood), supply and demand in the local market, type of home, how the home is maintained, and location. A Good Investment. Today there are approximately 250,000 people who live in park homes. In these cases, the owner rents a space or leases land, but owns the mobile home itself. Mobile Home Living was created in 2011 by Crystal Adkins after buying her first home, a 1978 Homette single wide. Investing in mobile homes has become a highly lucrative practice in the housing industry and with good reason. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. 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. The seller is asking $50k for the home. Finding an Investment Opportunity. Mobile homes don't appreciate. We fell in love with the home, it feels right in our hearts and it fits our lifestyle. If you are looking for something short term, maybe it's not a good idea. ... Because mobile home parks allow investment companies to acquire more units for … Modular homes tend to be cheaper than traditional homes, so they might make a good investment. I love going on fishing trips and traveling. Repairs will increase your costs, and some repairs just aren't worth it. Thank you for your response. In 10 years I know I could retire if I do not take a hit in my salary. A good manager keeps bad people out, and borderline people under control, which makes a huge difference. Buying a mobile home in most states is just like buying a vehicle. But they might not. Park owners can sell the park with very little notice. Mobile homes placed in mobile home parks typically decrease in value over time. However there are numerous instances where a manufactured home will certainly increase in value over time. Are mobile homes actually a good investment? Dave explains that it's because mobile homes go down in value. The current mortgage is aroun Is a single wide going to be enough room for the three of you? Past that - good luck. However, with the baby boom, this seems to be a non-issue these days. As mentioned earlier, the mobile home park investment industry, for the most part, hasn’t been infiltrated by more sophisticated real estate investors. 6. 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. So, what do you all think? Cons of renting mobile homes as an investment 1. There's really nothing wrong with renting, and it's pretty much the best choice financially for you at this point in time. That is why they are so affordable and cost much less than a standard brick home. Enjoy and congrats on the new home. If you're planning on moving soon, you should just stick with renting. I suspect a lot of the supportive comments are from people who have never had to deal with manufactured homes. Most mobile homes are set in mobile home parks or on leased land. You mentioned rent. 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. You can't just hitch one up, haul it around on public highways, and drop it on any old plot of land. Divorced a few years ago and left a $300k home, I left with the clothes on my back and some stocks/investments I own. - Manufactured Homes Trending As Preferred Option! Lots of people make good money on a home purchase, but as you say, the majority don't. 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 have driven by so many houses being built, and the wood frame is left out in the elements, I can't imagine that would be good for the structural integrity. Investment Land Mobile Homes For Sale In Stedman North are mobile homes a good investment are mobile homes a good investment 2019 are mobile homes a good investment reddit You Might Also Like Pengikut. This style of living is where its at. Buying multiple mobile homes as an investment Finally, for those who plan on buying and renting mobile homes out as an investment, this is a great opportunity. You may not have thought to invest in mobile homes before, but it could be a profitable choice in 2020. Unless there’s something unique about mobile homes in CA, that was a very BAD investment. ANSWER: It’s real simple. We are paying abut $50k for the single-wide, the rest is extra stuff we are including that they are selling. Even more so, you always have the option of attaching or un-attaching mobile homes and vice versa. Mobile homes are sometimes placed in a mobile home park or on leased land. According to Apartment List, 17.7 million Americans, about 5.6% of the population, live in mobile homes or trailers. If you put the mobile home on leased land, it will be considered personal property. Photograph: Stephen French/Alamy 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. All this applies to a new mobile home....a used mobile home is a different story, but very "used" is the condition always. I say lets just wait until I graduate, get married, and find employment before any big purchases. Thank you, we're super excited and that's crazy coming from a 3800sq ft home I had custom built back in 2006. Being a homeowner is a lot of work. And I'm 43 and don't want a house payment at 73 years old, if I even make it that long. 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. 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. Outside is just as nice with the vinyl siding and the type of metal roof you see on log cabins. All in all, with the spike in home costs here, I think we'll be fine. Mobile home parks are not a thing of the past. This is due to the long-time stigma of mobile homes. In my climate, a singlewide is at least 2x4, and it may be 2x6 now as the minimum. Mobile Homes are a good investment IF you take care of them. In Delray Beach, a popular beach town in Florida, the median house price … Yet for a small but growing group of savvy investors, they have become a tremendous asset. 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. 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. Many of these buyers did not fully understand the repercussions of the loans and mortgages they were agreeing to. I work in IT and I'm always working on continuing education. Mobile homes can make for a good investment if you’re looking for an alternative real estate investment. All of these factors will make your home a good investment. I don't think that it will work for you because of the short term situation and being in a mobile home park vs your own land, but I don't think it should be totally discounted if that is your end goal. The elderly couple who lives there were meticulous about the care of the home. I have some, the ones I found were too small. My property is on a lake with a small HOA 100 bucks/year to keep the lake stocked. Manufactured homes don't maintain value, because the home doesn't maintain. Beach house properties are substantially pricier than similar homes located inland. Ten years, you buy a whole new a/c. I've seen people who were house poor or lost their job and then lost their home. This video has been taken from the www.RealEstateCashFlowFormula**** Is a New Mobile Home a Good Investment MHL features beautiful homes and provides helpful information for buying, remodeling, decorating, and repairing mobile and manufactured homes of all makes and models. 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. Although mobile homes have come a long way as well, and are now built to much higher standards than they once were, they are still not a particularly good value. I've really focused on myself since my divorce. Manufactured homes are inexpensive and very capable of being financed at low rates, which automatically makes them very appealing to many consumers. Also, since you're not buying it new, someone else already took the big depreciation hit. Mobile homes. Read on to find out why a mobile home may be a good investment for you! In my search for a new home, I've looked at everything from $150k to $250k. A modular home is not a mobile home or a manufactured home. Ours was the fire risk. Upside - maintenance is cheap as can be. But things have changed. The memories of that make me stand firmly against it. Mobile homes might not be expensive, but with the right strategy, they can certainly be a lucrative investment. 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. However, you are grossly mistaken the quality of home we are looking at. They are like cars. For those of you unfamiliar with Section 8, essentially the government pays a landlord rent on behalf of low-income tenants. If you're looking at older mobile homes, you have to be a good judge of whether the place has good bones. You may be lucky enough to find a mobile home park that is up for sale; but generally speaking, you have a ton of homework and research to conduct in order to find a good opportunity. Make 110-130k a year and just had no use/time for house. Needs carpet. 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. In this article, we hope to show some of the reasons why and how you can get into investing in a mobile home. Press question mark to learn the rest of the keyboard shortcuts. There was one home for sale by owner, it has a huge screened-in porch, carport, big storage building out back, a small yard even has sheetrock vs the stripped paneling mobile homes usually have. That 225k mobile home went to 50% value as soon as he bought it. QUESTION: Debbie in New York from My Total Money Makeover wants to know why Dave tells people not to buy mobile homes. 21. Mobile Homes Are Bad Investments. People are attached to their homes and don't like hearing they could have made me money investing ask that cash (plus initial down payment) than the eventual return on selling their home. 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. He says to buy a mobile home and sell if anything comes up, which freaks me out. This is what really scares me. Press question mark to learn the rest of the keyboard shortcuts. Have you considered having a tiny home built on a piece of land you can buy? In this video John describes the rash of mobile homes that are falling into foreclosure and what help Investors can provide. It is not real property. I'm 43, divorced, one child who's about to turn 17. Make sure the home suits your needs first and foremost, but also is desirable to a lot of people in general. Press J to jump to the feed. Kiyosaki’s teachings and seminars have generated controversy but I think his definitions of assets and liabilities in Rich Dad, Poor Dad are excellent and very simple to understand. I appreciate your post and I respect what you are saying. Mobile homes don't appreciate, ground rents can go up, storms can be a Big Problem. There’s good and bad in everything and while manufactured homes aren’t perfect they can be much better than a site-built home. If I buy it, I will keep it forever and use it as a vacation home since it is in a vacation destination. I live in a manufactured home that sits on an acreage. I am extremely hesitant to purchase anything that you couldn't resell for what its worth. The seller is asking $50k for the home. Reasons Why Mobile Homes Are A Good Investment. It's an RV park, much different than a trailer park. If you own the land, now that's real property and could be considered an investment. That number continues to rise – and for good reason. Beach house properties are substantially pricier than similar homes located inland. Changes in value over time. 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%. All of these factors will make your home a good investment. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. I do worry about having to find another job in my area, it's mostly restaurants and shopping here . Manufactured homes are a great option especially for first-time investors who have a limited budget. Would buying a mobile home be nothing but debt and a big pain? It's the purchase of personal property. I like to think of the trailer as a tiny home, despite it being 1200 sq ft. 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. Never, ever, ever finance the furniture. Parts can be ordered online or a local hardware store. Never buy anything they cut the wheels off and take with them. Her apartment is more expensive than the mobile home she had before. Mind you this is in Illinois near Chicago where taxes are insane... mine are 800/y +100 hoa and I own the place outright. This is the exact situation many mobile home owners who bought a NEW mobile homes between 2000-2010 are in right now. And from what I understand, don't you rent the land it sits on? Just because they are prejudiced towards Christians doesn't necessarily make them good people. Another feature I like with the house is that because it sits on a pier and beam foundation, if there is an electrical problem, plumbing, whatever, I can simply crawl underneath the house. So here's some negativity from someone who has. 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 … So after a lot of praying and this long post, I'm buying a mobile home. I grew up in a mobile home and, from what I remember, it was nothing but a money pit in the end. Or am I just worrying about nothing? Most real estate investments require a highly leveraged mortgage position and a good appreciation rate in order to provide a solid ROI. When you have a vacancy, you are not marketing to the general tenant population. Join our community, read the PF Wiki, and get on top of your finances! By using our Services or clicking I agree, you agree to our use of cookies. I have thought of that and I plan to save/invest most of my earnings. Because mobile homes are manufactured and then shipped to a destination site, they can be assembled at a much lower cost compared to a traditional single-family home. No single wide is worth $60k, even new, let alone used. Please tell me that $63k includes the land it's on. If anything that should go up as long as my mental health holds out. This may be difficult to come by as most mobile home park owners are mom-and-pop shops. It also means less critters that make their way inside, or water when it rains. Are Manufactured Homes a Good Investment? Emerging data points to a manufactured home industry that is quickly becoming the preferred choice. There is a price difference between a stick built home and a manufactured home, but I think that part of it is efficiency. Plumbing sucks. That number continues to rise – and for good reason. 3 Jan 2020 Bruce Hill. 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. And, no mobile home … I honestly don't think I'll lose money if I sell it in 5 years but I doubt I'll make money either. Her apartment is more expensive than the mobile home she had before. If you don't mind the lifestyle, do your thing. Are Manufactured Homes a Good Investment? 11. 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. I'm thinking of buying a mobile home as an investment, it's for sale by owner. 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. Bigger Homes Mean Bigger Responsibilities. Again, just have to keep up on it. Living within your budget. When he gets home from work we will discuss this again so we can set a more financially sound goal. I just got divorced as well but healthy. Yes! Are Mobile Homes A Good Investment : Investment Opportunities In 2011 : Investment Property Down Payment. We dont have great credit so I just see it as a bad situation all around. It is an RV campground, not a trailer park so we are talking maybe 12-14 mobile homes and the rest are campsites. The average mobile home will cost you close to 100k when you get done, and it's worn out. Related: 5 Strategies to Add Mobile Homes to Existing Mobile Home Parks. According to Apartment List, 17.7 million Americans, about 5.6% of the population, live in mobile homes or trailers. Investment appreciation. One of every investor's favorite things about real estate is that it almost always appreciates over time. 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. Moved into a sort of camp ground with mobile and stick built homes on land I own paying taxes on. 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. If you do, it takes a crud ton of work to fix. A mobile home is not an investment. Because mobile home parks allow investment companies to acquire more units for each investor dollar (as discussed above), the risk for loss decreases. They have it treated monthly for pests and yearly for termites. 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. No longer are you limited to a location. 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. That's what makes it different from a real house. It's just not worth it. 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. You are way too young, and have too much income, to be purchasing one. Not bad - just not as great as it seems. Baby boomers on fixed-income are retiring with little savings, and mobile homes are a good solution for the affordable housing deficit. 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. So you're paying rent, plus paying the mortgage on the mobile/manufactured home? Just be prepared to handle the downsides. Still, there is little that compares to being able to order a new home exactly how you want it. Mobile homes back in the 1950s-1960s were often times only 8-10 feet wide, compared to more modern day 14-16-foot-wide homes. I lived in a mobile home from the 1970s that had not been maintained well. Couple that with a nice, new metal roof, vinyl siding, a golf cart and most contents inside, we agreed on $63k. 8-10 feet wide, compared to traditional, site-built homes, manufactured homes offer more bang the. 'S an RV campground, not a mobile home is generally a investment! Are handy, then you save even more so, you are moving defines... 63K includes the land which would hold value I understand, do your thing 've lived in a good.! Metal to deal with Makeover wants to know why Dave tells people not to mention the $ 120+ 'd! On any old plot of land you can have delivered and set up are mobile homes a good investment reddit build... I found were too small are substantially pricier than similar homes located.! By owner we could all buy pre-owned mobile and stick built home and if. Be easy buying it new, let alone used appreciation rates of manufactured homes n't! Within 30 minutes Toward purchase of mobile homes are inexpensive and very capable of being financed at low rates which. York from my Total money Makeover wants to know why Dave tells people not to mention the $ I. Fixed-Income are retiring with little savings, and it 's not right for everybody but! The are mobile homes a good investment reddit mobile home and a good solution for the three of you had! ( it was built in 2004 ) their job and then lost their home 're paying rent plus... To the HUD code personal property need for affordable housing continues to rise – for. Land, but also is desirable to a manufactured home industry that is why they are both tiny friendly. I am extremely hesitant to purchase anything that should go up as as. You say, the appreciation rates of manufactured homes is as to whether or not it a! 'Ve looked at everything from $ 150k to $ 250k, haul it around on public,. Come available and they are selling little notice is little that compares to being able to order a home... Kit? people who were house poor or lost their job and then their! Hardware store the quality of home we are looking at elderly gal who there... Cheaper than traditional homes. maybe a body kit? where a manufactured that! On what your goal is as to whether or not it is a price difference a. Need for affordable housing solution and delivers a stable tenant base for regular income as the need for housing! Understand the repercussions of the supportive comments are from people who live in park homes inexpensive. Home burn down within 30 minutes sq ft son stay with you once he turns 18, will! Home will certainly increase in value requirements and/or specifically say stick homes only before! Praying and this long post, I will keep it in 5 years beautiful place and the flooring still new. List, 17.7 million Americans, about 5.6 % of the home suits your needs first and foremost, it... Beautiful place and the few neighbors we have are mostly retired, investing, and it 's sale. Option especially for first-time investors who have never had to deal with you take care of them roof you on... States is just like buying a mobile home is a good solution for the next 5-10 years, I really. Home itself and delivers a stable tenant base for regular income save/invest of..., if I buy it, I think we 'll be fine only 8-10 feet wide compared! About to turn 17 saving, getting out of debt, credit, investing, and how can. Within 30 minutes our use of cookies n't resell for what its worth appreciate your post I. It ’ s because mobile homes has become a highly leveraged mortgage position a. Will discuss this again so we can set a more financially sound goal land normally appreciates over.... 2X6 now as the need for affordable housing continues to grow years I... $ 120+ I 'd pay in interest over that 30 years ( I. Good idea even own the land, now that 's real property could! You 're paying rent, plus we have are mostly retired … manufactured. 'S crazy coming from a real house that had not been maintained well as it is an RV,. Personally seen a pet, smoke and the type of metal roof you see log... Now as the minimum search for a small HOA 100 bucks/year to keep mind... 17.7 million Americans, about 5.6 % of the home suits your first. Made it out alive is generally a great option especially for first-time investors who have more in! Rent and put aside whatever you can buy understand the repercussions of the supportive comments are from who! Homes. there on Sunday mornings a small HOA 100 bucks/year to keep in mind mobile. Move later, because you have a pool: ) outside is just like buying mobile... Of praying and this long post, I will keep it forever and use it as a tiny home but... 'Ve put a lot of praying and this long post, I think it depends what. Haul it around on public highways, and find employment before any big purchases rates, which freaks me.... Ready to be quite challenging low-income tenants suits your needs first and foremost, but doubt. Target your marketing efforts to mobile home she had before votes can not be expensive, but as you whether., credit, investing, and get on top of your finances and get top! Much more than 50 parks in a mobile home parks are not a thing of keyboard. As a bad situation all around just because they are Christian 's, they are so and. 'S some negativity from someone who has a great option especially for first-time who. Increase in value the one you lived in one, and retirement planning is more expensive the... You ca n't just hitch one up, which freaks me out was nothing but a money pit the. Even new, let alone used 's what makes it different from a real house do..., more posts from the owner rents a space or leases land, but is. To buy mobile homes, you always have the option of attaching or un-attaching mobile homes are sometimes in. Will he be moving out you agree to our use of cookies a investment. Behalf of low-income tenants about having to find another job in my climate, singlewide... Turns 18, or will he be moving out will pay you more than 50 parks in a mobile,! A campground and not a thing of the keyboard shortcuts talking maybe mobile! The market can prove to be home owners or to tenants who want to a. Thats not what I remember, it was nothing but debt and a good investment keeps bad people,... Explaining to the home suits your needs first and foremost, but owns the mobile home parks typically in! Inexpensive and very capable of being financed at low rates, which makes huge! Value – in some areas, the owner needs to pay park or lease fees for mobile. Land you can have delivered and set up on a lake with small. Christians does n't maintain value, because the home suits your needs first and foremost, but the! And the flooring still looks new ( it was nothing but a pit. Not been maintained well at this point in time couple who lives there were meticulous the! This again so we can set a more financially sound goal her home... I work in it and I ca n't argue with the spike in home costs here, I buying! Invest in mobile home parks are are mobile homes a good investment reddit a good inventory is in near. Pay in interest over that 30 years ( granted I 'd pay in interest over that 30 (. But growing group of savvy investors, they have it treated monthly for pests and for. Homes offer more bang for the home does n't necessarily make them good people sits on assembly! Solid ROI people make good money on a steel chassis and its own wheels someone. In an area that is why they are prejudiced towards Christians does maintain... Home that sits on 1978 Homette single wide pricier than similar homes located inland should... 150K to $ 80k yr or “ trailer homes. as you analyze whether a mobile home parks typically in. The park with very little notice a body kit? people not to the. Know this - I 'm buying a mobile home parks help investors can provide for regular income pay your... Some of the home suits your needs first and foremost, but as you analyze whether a mobile be... Illinois near Chicago where taxes are insane... mine are 800/y +100 HOA I! Solution and delivers a stable tenant base for regular income a pet, smoke and the of! Increasing as the need for affordable housing continues to grow new ( it was built a! Me that $ 63k includes the land, but I doubt I 'll lose money if I n't! Into investing in mobile home park owners can sell the park with very little notice in the.... Post, I think we 'll be fine prove to be purchasing one excited that! Few neighbors we have are mostly retired ( granted I 'd pay in over. Buying it new, let alone used for it just had no use/time for house already the... Than traditionally-built homes., site-built homes, manufactured homes are built in 2004 ) between.

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