Hey, i was wondering what kind of rentals grounded manufactured home make? Grounded meaning they are with land. I am wondering this because i see everywhere grounded manufactured homes that rent for similar prices as the actual homes with much lower purchase cost, and it occurs to me are there any real disadvantages? I realize that perhaps finding tenants would be harder because people have a tendency to look down at manufactured homes, but is this the only real disadvantage? Can't wait to your guys' input.
Kenneth, you are correct grounded manufactured homes offer very good cashflow potential. However, if they are pre 1976 they can be hard to buy because of a lack of mortgage options, even if you can pay cash keep in mind your exit strategy because your target market may not have that luxury when you go to sell. They also offer very little in expected appreciation, renter demographic is not ideal, and don't offer as much tax benefits as RE. All in All I say its not better not worse just different. Do your homework, find out what you want to accomplish with purchasing and see what fits in with your goals the best. Hope this helps.
Rob Anderson, Anderson Property Management LLC | [email protected]
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