what about buying manufactured homes...need your opinion

1 Reply

I have owned several and can give you my opinion. Depending on how you want to purchase them will make different results.

1. You have to understand that you will lose the value of the home over time which is the biggest drawback. Mobile homes lose there value over time the way a car does so keep that in mind. If you pay $20000 for one today in 10 years it will be worth $5000. (These are not definitive numbers just making the point) So your cash flow will pretty much be all you get.

2. They tend to draw a more difficult tenant the way a lower class house would. Making it a more challenging process.

3. One of the biggest upsides to them is you can get them cheap. I own one now that I paid $1300 for and spent about $3000 rehabbing and it rents for $400 a month. I pay $100 a month for the lot rent and make $300 a month off of it (minus taxes and upkeep) if you can pile up enough of them it can be great but can also be a lot of work.

4. They also tend to rent really well meaning they don't sit empty very long but the turnover cost can add up as people in that price range don't typically care about the property.

There are a lot of other pros and cons but I think that they can typically be a great start if you are willing to put up with the hassle factor. I started that way both times and it worked out great. ( lost everything in a divorce the first time and had to start over). If I can help with any questions you have about them let me know.