I live on the Oregon Coast, and there are a lot of manufactured homes out here. In fact, most of the "working" population lives in manufactured homes under $200,000. I am trying to run the numbers on these properties to see if they would make good rental properties, but I do not have a ton of experience with manufactured homes.
Anyone have experience renting and financing manufactured home that they would be will to share with a newbie? Any experience with renting manufactured homes in expensive/ low inventory markets?
Should I just run the numbers the same?
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I don't have any experience with this but I don't see why you wouldn't run the numbers the same as a house in the same area. @Ryan Groene any insights?
@Alex Hake ...are you specifically referencing the Oregon market? @John Fedro is a great place/resource on how to evaluate a mobile home and how to rent them how and evaluate them. good amount of articles on BP forum as well written by him.
Evaluating a mobile is different than a single family home in that some of your percentages of cost to repair will be different...most of my experience is in the midwest where mobile homes cost in 1k-40k range.
@Alex Hake , it depends on what kind of property you are talking about. Manufactured homes outside of a park typically receive rent close to market rent. The only issue with holding manufactured homes is that if they are not properly maintained they can degrade pretty quickly. So factor in maintenance costs/cap ex as usual and make sure you have a maintenance schedule.
Manufactured homes in a park (without amenities) will get slightly less than market rent just because it doesn't appeal to as many people. That being said there is a pretty strong rental market on the coast and I know there are quite a few manufactured home parks so there may be more of a market for it in your area. I would not be surprised if those rents are fairly close to market rent. Another factor that is important to look at is how many renters are retired/elderly. Manufactured homes in a park tend to appeal to the elderly because of the one level living space, proximity to neighbors (pros/cons), and easy maintenance when it comes to the yard. I know certain parts of the coast have a pretty high density of retired individuals so there may be more of a market for that.
Unfortunately I do not know enough about Lincoln City specifically to give you an accurate answer. Check rents on Zillow and see if there are enough manufactured homes listed for rent to compare that with SFRs.
@Alex Hake - manufactured homes in your area cost $200k?
Yeah, so a manufactured home on about .11 acres goes from about $150-200 along the coast. These are not in parks, they are generally standing in for where a sitebuilt unit will eventually go. Housing is expensive out here so a lot of people opt for this.
My thought is, over the course of 10 years, the lot value on many of these properties will appreciate past the cost of the manufactured home, so I would love to buy and hold and see if I can pull that off.