BRRRR possible with manufactured homes?
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?
The Following is just my opinion as there are not a lot of details in the post....
If it were me, I would flip the Manufactured home and put the proceeds towards a BRRRR that you want to keep long term. I am sensing by the wording on the post that manufactured homes is not your ideal strategy. It is okay to use multiple strategies but make sure they feed into your end goals and not just get you in the game.
Hope this helps...
Patrick that helps a lot actually! I never thought of doing the manufactured as a flip and recouping capital that way. Thank you!
@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.
Are you talking Manufactured homes on real Property or a manufactured home in a park?
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@Sydney Brisco in theory - yes. You could BRRRR with manufactured homes. But the reality of it is that most lenders won't want to help you on the REFINANCE step. It's pretty hard to find a lender on an investment property mobile home. But if you can find one, and make the numbers fit, then yes, this is entirely possible.
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