My local area has quite a few manufactured (manu) homes. It is a more rural area with a city center nearby. I have started looking as some of the properties that are for sale. Not know much about manu homes I turned to the forums for more information. There seems to be a toss up on the feelings of buying manu homes. Some say they are a great (read cheaper) way to get started in investing, while others swear that they are garbage. I realize that a lot of opinions may be based on experience in a different markets. I'm just trying to get a better feel for whether it is ever a good idea. Do manu houses work for long term buy and holds or better as a fix and flip? Would I be able to use a strategy like BRRRR on a manufactured home (in other words is there an avenue to refinance after a rehab)? What expenses are there on manu homes as opposed to more traditional stick houses? Just trying to get as much information as possible to do accurate calculations.
Bottom line are manu homes worth the squeeze, so to speak?
Thanks in advance.
Yes, there has been a lot of debate on the forums about this topic. We have had great success with manufactured homes. I am from Washington and we like to invest in the rural areas around the city. Most of our manufactured homes are buy and hold or sold on lease options and have worked very well. The benefit you get from manufactured homes, at least in our experience, is a lower price compared to stick built with almost identical rents as stick built.
When it comes to differences in maintenance/rehab, it is no different than a stick built. One thing I can say about the opposing side of the manufactured homes argument, is it does tend to attract a certain kind of tenant. We are extra careful in our screening process for this reason.
Let me know if you have anymore questions! I’m sure you’ll get many helpful replies from people on both sides of this argument.
I don’t think appreciation is as good a stick built and the way they are assemblied together makes them less desirable and prone to repair on the floor entry ways according to my contractor . Aside from that They make these in a day and drive them to the location in pieces . That being said they sell for less and could be a good way to start investing if the price point is right . Everyone needs a place to stay