Main Advantages of Buying a Mobile Home; And Where to Find Cheap Ones
Mobile homes get a bad reputation, but a lot of people are turning to these affordable home options because housing prices are too high. A traditional stick built home has the advantage of a traditional mortgage, and the price of a traditional home will increase faster than a mobile home's price.
The main advantages of a mobile home can be broken down into several categories:
Rental Opportunities on the Cheap
Mobile homes are cheap to buy, and these homes are also a great rental option, too. When buying a mobile home, you have the option to relocate the home to a parcel of land you purchase, or you can choose to:
- Lease Land - a form of rental where you'll lease land from the owner establishing rights to keep the mobile home on the property.
- Mobile Home Park a mobile home park allows for the proper hookups and needs of a mobile home. These parks can charge fees of $200 - $300 a month.
If you have a newer mobile home, the cost of renting the lot and the mortgage can range between $700 and $1,000 per month in most cities. Upscale mobile homes with top-of-the-line amenities can cost more.
So, there are opportunities to buy the mobile home and rent it out for a profit.
You'll also find that many of these rentals will be best suited for use on your own land. If you can place the home on land you own, it drops the cost of ownership dramatically and boosts the profits of a rental property.
Lower Cost of Ownership
Mobile homes have a long-standing place in the real estate market because of their low price. When a person can't afford a stick built home, they can often find a mobile home that is far more affordable. In fact, mobile homes cost less per square inch than a traditional home.
But, mobile homes aren't as cheap as they were 20 years ago.
Mobile homes can cost as little as $37,000 for a single wide and up to $73,000 for a double wide. These homes can often be found for cheaper, too. The interesting thing is that these homes often demand a non-typical mortgage that lasts 10 years.
Some lenders are now offering longer mortgage terms, too
A semi-permanent home, mobile homes have the potential of being moved in the future. If you're buying land with the idea of selling it or building it up in the future, you can choose to place a mobile home on the land now and start making rental income.
You may decide to remove the home from the lot in the future and build a traditional home on the lot, too.
The idea that a mobile home is not built to the standards of a traditional home is a fallacy. Many people don't realize that mobile homes are built in a controlled environment. These environments allow for the highest level of craftsmanship.
And there are often no holdups due to weather and sub-contractor concerns.
The only issue with a mobile home is that it will depreciate in value much like an automobile. Stick build homes appreciate in value. Land value will also increase with a stick built home because they're often kept in one place and not moved.
It is possible to move a stick built home, but it's not a practical option for most people.
Mobile homes are often placed on a temporary foundation making them more susceptible to damages from high winds and earthquakes. You can place a mobile home on a permanent foundation to alleviate many of these issues, but this eliminates the ease of moving the home in the future.
Where to Find Cheap Mobile Homes
Mobile homes, especially ones that have been in place for years, are cheaper than a newer mobile home. The great thing is that many of these mobile homes have something many investors don't even know about: great locations.
You can find mobile homes in some of the top destinations in the country:
- California - the beautiful counties of California are filled with mobile home opportunities. You'll find options all along the coast, and in some of the biggest cities in the state, you'll also find ample mobile homes:
- Fountain Valley
- San Diego
- Santa Ana
- Florida - the sunshine of Florida is a perfect getaway for people from around the world, and there are mobile homes in prime locations just waiting to be snactched up by an investor. Some of the locations where mobile homes are selling fast in Florida are:
- New Port Richey
- Levy County
- Kentucky - rural and relaxed, Kentucky is home to numerous mobile home manufacturers and ample land opportunities. Covington has numerous opportunities for a mobile home investor as well as other cities:
- Georgia - the great state of Georgia still has a lot of charm, land and friendly residents that are more than happy to invite you into their home for a piece of pie. When looking for mobile homes, you'll find ample opportunities in:
- Rising Fawn
- Rock Spring
Mobile homes have come a long way from what people 30 or 40 years ago viewed as a bad investment. While the mobile homes of today still depreciate in value, they're built to the highest standards and also provide investors with more than enough opportunity to make monthly income off rentals.
And when the property is owned by the investor, they'll be able to build higher appreciation value in the land and choose to sell or develop the land further in the future.
Mobile homes are starting to rise in popularity again as many potential homeowners don't have the finances to be able to buy a traditional stick built home. Renters are also becoming more prominent, and a mobile home is often viewed as a better rental option than an apartment due to higher levels of privacy.
If you want to own a rental or personal home and don't have the money for a stick built, a mobile home is a great choice.