To keep this short, I'm in my early 20's and make ~ $3,000/mo after taxes. I'm considering buying a mobile home and paying it off quickly, thus living rent free. I could take the addition $1,000/mo that I'd usually pay in rent in my market to save as a down payment for future real estate endeavors. Ultimately, buy a mobile home for myself and begin putting investments into an LLC to manage my tax benefits.
My reasoning behind this is because I'm so young and my job is a little sketchy. I've been laid off for 8 months before and barely survived in a warehouse with my high rent (before I got a better mindset).
I feel like buying a mobile home would be nice. I could spend the next 10 years investing without worrying about a rent payment, build my portfolio, and buy a nicer home down the road. But everyone seems to hate mobile homes. Is there an exceptional case, like mine?
By the way - I know and am very familiar with house hacking. I live in a college town and it would be a great opportunity, but I'm just worried on my job situation. It seems pretty stable right now, but I don't want to gamble with it. If I were to house hack as my first deal, not find good tenants, lose my job..... I'm sure you see the downward spiral. I feel the mobile home approach in my situation is actually well thought out.
ANY input it welcome and appreciated, good or bad. Thanks!
Moving a mobile home is expensive, that is one reason the tiny homes are interesting, probably pull one with a pickup. You’d have to rent your land. I see ads where people buy travel trailers and want to rent spots in a backyard...have to hook up to sewer and get water from a spicket. Living with roommates is the tried and true method of cheap , low commitment housing. Rent free is walmart parking lot.
@Marian Smith Land rent (from my parents) is only $150 a month. Have you seen any tiny homes worth it? They're all a small much as an actual house from what I've seen.
I own 3 mobile homes currently. there is nothing wrong with your idea. I work the oil industry and have had some off times. During the last down turn I had to sell a rental to stay afloat.
The key is that a mobile home is a like a car. If you buy new, you will take a beating. There are a lot of people realize they can get into a MH easy, but trying to sell can be a problem. I have purchased all of mine for basically the value of the land.
I do not remember th pod cast but there was at least one about investing in MH. Just go find someone who needs out of their MH. You can get it to close to nothing, move in and improve it. You can go find another and do it again.
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I hear you. That is why I said “interesting.” I saw a few container homes built for hunters for sale in West Texas. 50k. They had welded bump outs, reclaimed wood and all kinds of upgrades. But point being, it is thousands to move a mobile home... putting it on your parents land might work out great. Does their neighborhood allow it?
Find out if you can get a permit first. Many areas will not allow you to place a mobile on a existing occupied lot/acreage. Consider the cost to move it in and move it out when you are done living in it. It is a depreciating asset so make sure you buy a inexpensive one in fair condition so when you are done you can sell cheep or give it away and have the new owner pay to move it.
@Marian Smith yes it's allowed. Just hasn't to be on 5 acres minimum. It's 8. There's actually a mobile home on it now, my parents bought the land but the owners wanted too much for the trailer. So now, 2 years later, they're either going to have to sell me the mobile home at a great price or move it and I'll bring in my own
If your parents are on 7 acres, you might keep an eye on the house to be moved opportunities. The guy who moves houses and fixed the piers on my son’s house (which was moved and placed on pads like a mobile home in 1997) said people get houses for free but it is 20k to move them. His house was free. It is expensive to demo a house, so people give them away. He told me this a year or two ago.
Mobile homes are a no-go for me. Rent a room for $250, drive a crappy car, live reasonably, and save every penny until you can buy some property. Learn how to wholesale.
Mobile homes depreciate
I personally bought a SFH and my "roommates" paid all but $50 of my total monthly bills. Why not blend all of your ideas together, you say you fear house-hacking because of job stability/tenants so why not rent the rooms in the mobile home out to college students who don't care that they are in a mobile home and they will likely more than pay the payment on the mobile home (if you can get a loan to purchase it). Then you won't lose money on a mobile home and in the mean time you are able to save your income to upgrade. Then you sell the mobile home that your roommates paid for and you don't care if it sells for a little bit of nothing (or you could keep renting it out) because you paid nothing or very little for it. I would steer clear of moving into a mobile home by myself though, because it will no doubt lose value.