Manufactured and Modular Homes - Worth Investing In?
So I recently began to look at investing in real estate, and have found that there are many modular homes that are very cheap. I assume that investing in manufactured homes doesn't bring great returns, but I don't see anybody talking about if it is worth while.
Does anybody know more about this type of investment and should I even waste my time researching it?
Comments
That's a very interesting question. The conventional wisdom is that manufactured and modular homes depreciate in value quickly. That would mean that they are bad investment decisions. But I suppose if you took care of the home or were able to fix it up, you might be able to turn a little profit on it.
Posted by: Andrew Flusche | April 7, 2008 08:15 PM
i agree with andrew that modular and manufactured homes depreciate quickly. but in the end, its how ell u manage ur finances.
Posted by: Daniel | April 7, 2008 10:09 PM
hmm, you have very good question, but i would suggest you to keep away, its useless research work you could have earn much better in other fields.
Posted by: Rostyslav | April 8, 2008 12:57 AM
I have heard that modular homes depreciate more quickly, but I think it also depends on what exactly you put in to it. I think modular homes can be a very good option for some.
Posted by: ModularHomeFinder | April 8, 2008 05:32 PM
I haven't heard anything that supports this. However I would have to think that this would not be the best type of investment since modular homes depreciate so easily.
Posted by: Phyllis Vance | April 10, 2008 03:32 PM
Modular homes are a nightmare.
Posted by: Tierra Concepts | April 16, 2008 12:18 PM
No research is ever wasted research! In the end, you just become a smarter invester!
Posted by: Emily | April 25, 2008 09:53 AM
It can make you money the keys are,
1. No Parks or Modular Communities. These attract JR toothless and his buddies.
2. Buy larger homes 1900SF minimum.
3. Buy homes on great pieces of land in rural America. Look for large properties 1-10 acres. Find something that you would almost buy at the sell price for just the land, there are a surprising number of these out there.
4. Rent to quality tenants.
5. Over time the appreciation of the land is far greater then the depreciation of the house.
Remember they ain't making any more land.
Posted by: Dallas Businessman | May 3, 2008 06:43 AM
I have made a killing on mobile homes over the last 10 years.I left my real job 9 years ago and it has been great.I buy older M.H. on land worth 40k for 20k and rent to own them out for $600 a month. T&I are next to nothing on these and the cashflow is off the charts.I have good tenants that I screen real good.The older M.h. do not drop anymore in price,most go up. They are cash cows
Posted by: Dan | May 18, 2008 03:32 PM
I'd personally wouldn't invest in manufactured homes, but instead focus on newer modular homes. Appraisers aren't allowed to appraise it lower because it's a modular, but instead appraise it just like it's a site built home.
Check out the modular home episode on the the show Build it Bigger (Discovery Channel)
Posted by: Real Estate | July 14, 2008 02:01 PM