Mobile homes are built in a factory and then moved to a site. It can be your main home, a place to go on vacation, or a place to rent out. It is thought that about 22 million people in the United States live in manufactured homes.
So, is it worth it to buy a mobile home? Is it a good idea to buy mobile homes and rent them out? You can answer these questions by looking at the pros and cons of purchasing an affordable mobile home.
Pros of Investing in Mobile Homes
The price is one of the best things about manufactured homes. Since they are made in factories in large numbers, mobile homes for sale are much cheaper than other homes for rent.
More Luxury Options
Since you don’t have to spend much on mobile home parks, you might be able to buy nice things like granite countertops, hardwood floors, and other upgrades. You’ll be able to rent out mobile homes for more money if you add these things.
Maintenance and Repairs Cost Less
People living in your mobile home will be responsible for repairs and maintenance. So, you don’t have to deal with contractors.
Mobile homes are in higher demand yearly because more people are looking for cheap places to live. Mobile homes can be accessible cash-flow properties if you rent them out.
Lower Tenant Turnover
Mobile homes don’t change hands as often as single-family homes, apartments, and homes with more than one family.
There aren’t many people who invest in mobile homes. This means people who want to buy manufactured home parks have more options.
Negative Aspects of Investing in a Mobile Home
Many people don’t like the idea of living in a mobile home. Some people think they’re good places for poor people to live, while others think they’re dangerous. Such attitudes could make it hard to find tenants.
Quick Loss of Value
Most of the time, mobile homes lose value much faster than traditional homes. From a tax point of view, this is good news, but it hurts the value of your home when you want to sell it.
How to Purchase a Mobile Home
Follow this step-by-step guide to buying a mobile home if you’ve decided to invest in mobile homes:
Know Mobile Home Types
Double-wide units and single-wide units are the two main types of manufactured homes. The main difference between single-wide and double-wide homes is that double-wide homes are twice as big as single-wide homes. The rooms are next to each other in a single-wide unit, but in a double-wide unit, there is a hallway between the rooms. You could look at both options by going to a mobile home park.
Check out the Features
Whether you’re buying a new or used car, you should look for features that will help it sell in the future. Other things to think about besides granite countertops and stainless steel fixtures are:
- Roofs with a pitch and shingles
- The wood floors
- Siding (preferably vinyl)
- Built-in valves to turn off the water
Close and Set up the Mobile Home
Before you close on the rental property, many places that sell mobile homes will let you add warranties, taxes, or insurance to the price of the new house. Even though the offer might seem good, it might not be in your best interest to take it. Instead, you should get the extras from a local mobile home park broker.
Quick Tip: Don’t give the dealership extra money.
Buying a mobile home park is a pretty easy thing to do. You can get a good return on your investment from renting out your mobile home if you plan and do some research.