BRRRR possible with manufactured homes?

[Sydney Brisco]

Would there be any difference to doing the BRRRR strategy with a manufactured home? I do understand that the home would not appreciate as much and the rent would be lower. But would it be better to start my BRRRR strategy with manufactured homes (which I can afford now) or wait to start until I can do the strategy with a stick built home?

[Steven Goldman]

@Sydney Brisco   Manufactured homes are tricky from an appraisal standpoint. I would be careful to check that their are other manufactured home within the required distance for an appraisal. Many lenders will not lend on manufactured homes. Here is a blurb about manufactured homes:

Appraisals

Appraisals of manufactured homes must contain at least two comparable sales that are also manufactured homes.

This is often one of the most difficult requirements because manufactured-home-comps are few and far between in many areas – frequently making such homes very difficult if not nearly impossible to appraise.

In our experience, manufactured homes tend to appraise for far less than standard homes because the appraisals are so difficult, because financing is more difficult to obtain, and because of a stigma that seems to be attached to manufactured homes (justified or not).

As an investor I would stay away from manufactured homes unless you are planning to buy in cash and hold long term. Just saying.....Good luck.