Manufactured home on a permanent foundation as a rental?
Hi there,
Looking at a 4 bd 2 ba manufactured home sitting on a .77 acr as my first rental.
Do manufactured homes appraise the same as a regular home and can I count on the value of the home going up the same as a regular home?
The home is beautiful and would require no rehab.
Thank you so mcuh!
-Luther
#3 Private Lending & Conventional Mortgage Advice Contributor
- Banker
- Nationwide
- 985
- Votes |
- 1,814
- Posts
#3 Private Lending & Conventional Mortgage Advice Contributor
- Banker
- Nationwide
Luther,
Nothing wrong with going the MFH- Mobile Home route as a first purchase/rental. To answer the appraised value and continued growth it would depend on a few things. If your buying a "Newer" Manufacured Home not more than 15 years old. It would also depend on if there are other "Newer" MFH in the general area and will continue to be added to the local area.
The issues comes when your trying to refinance or get an appraisal and there are a shortage of recent sales in the are that are also MFH's. Usually an appraiser will not use an SFR as a comparable sale due to the property type and most SFR's are superior to MFH's.
Quote from @Luther Maday:
A manufactured home will never appreciate as well as a stick-built home, but they can still be good investments in the right situation. They are often good for cash flow and appreciation can be decent in the right market. Anticipate higher maintenance costs over the years. Here's a manufactured home for sale in Malibu for $2.5 million: https://www.realtor.com/reales...
