I've have an opportunity for a 4 bed 2 bath Manufactured Home in Ingalls, Indiana.
Would very much welcome some opinions. Because i'm just not very knowledgeable on Manufactured homes, and the location.
Home is on a foundation, and has bigger windows (doesn't looks like the smallish windows you find on most older manufactured homes), built in 1996. Not sure if it makes a difference but has the trademark wall boards that are covered by trim strips on the vertical seams. I've seen other Manufactured homes that have regular drywall through out.
House is in decent condition doesn't seem to have any needs for major repairs. Just paint and maybe some flooring like Carpet or Laminate in certain areas, and maybe a minor rehab of the bathroom. Kitchen is in good shape, has an open floor plan.
Located in small neighborhood that has a mixture of Manufactured and stick built homes.
I'm not sure what to think about the location.
Safe town, Pendleton school system which is great.
Easy access to Indianapolis via Pendleton Pike. I know that towns like McCordesville and Fortville are very popular for families. Ingalls is the next town down the road about 5 minutes. Also kind of close to I-69, which has alot of development around that area with Hamilton Town center and Medical Campus.
Being a 4 bed, I think I have the opportunity to get a long term tenant. But i'm not sure if I would have a hard time renting this property out considering the location and the manufactured aspect itself, though the exterior looks great.
I'm looking for rent range of $850- $1000 or possible lease option in the future. I have seen these rent ranges for 3bed room houses in the same general area on Rentometer.
Am I nuts on this house? I am primarily interested in it do to the fact that the price seems like a steal and is priced identically to a home I am looking at in Beechgrove that is only a 2bed -1bath and about half the size, and needs similar repairs.
I'm gong to say no on manufactured housing and no on location. That isn't really a suburb of Indy, more a tiny rural town. You'll have a tiny pool to rent to and the home will depreciate in value as it ages. You are better off to look in Beech Grove. You'll have quality built homes and a large tenant pool.
I agree with @Rusty Scott . Manufactured homes are not good investments. They are hard to get financing on which limits your exit strategy.
I think it depends on the customs and habits of the area. My good friend
Buys used mobile homes on their own land and does "rent on own" on them.
If your brand-new I would go to that small little town and go talk to a broker that has been working in that town for 30 years and ask them about investing in mobile homes, that's what I would do
We love double wides on their own land. Have to be out side of a park... IE on its own lot. In GA due to county zoning double wides are often on an acre, 2 acres or a small city lot. We buy them for $20k to $25k forclosed from banks, put in $1k to $10k. Then we ONLY rent to own, then seller finance. We get good families wanting ownership and pride. Never rent anything called a mobile home. All the stories are true. Rent to own, seller finance is a different story.
We started out in stick built rentals in top high school districts, a top strategy for problem free rentals. We like double wides so much this is all we do now. Cap rate is astronomical. All in ave $30k ish and rent is averaging $875, $1500 down and we finance Dodd Frank compliant typically into a 13-14 yr note. If we get one back, just mark up higher and repeat.
You are correct. That's why we don't hold the home, we sell it with seller financing. It's a perfect storm of: demand, cheap, no other investors like them (buy what's hated), and no one finances them so sell with your own financing. Isn't this called "cornering the market"? :)
Makes sense. Same strategy used for mobile homes.
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