As a Greensboro rental property investor, you are probably searching for a good deal on a property constantly. You may wonder whether manufactured homes are a wise investment. At first, It may appear to be the optimal option for your next rental property. Manufactured homes are popular in numerous regions of the United States. However, there are a number of advantages and disadvantages to consider before deciding whether a manufactured home is the best option for your next investment property.
Oftentimes, manufactured homes are more affordable than other types of single-family homes and this is one of the greatest advantages. Due to the manner in which prefabricated houses are constructed and installed, their cost per square foot can be much less than that of other properties, even ones of comparable age and size. Additionally, a new manufactured home will probably be far less expensive than new construction, which may be out of your budget range as an investor. Additionally, they are typically constructed in half the time required for traditional homes. In other words, you could spend about the same amount on a brand-new home and start renting it right away as you would on a fixer-upper that would take months to get ready for your first tenant.
Investing in manufactured homes also provides quality and an eco-friendly design. Nowadays, unlike in the past, the quality of manufactured homes is usually on par with or higher than that of traditionally constructed homes. The likelihood that the manufactured home you purchase will be structurally sound, attractively designed, and energy efficient is increased by the strict factory standards for manufactured homes. Most have upgraded insulation in the walls and under the foundation. Additionally, they provide energy-efficient windows, on-demand water heaters, and fixtures and appliances that conserve energy. These eco-friendly attributes can all lower utility and upkeep costs.
However, there are some disadvantages to investing in manufactured homes. Finding a suitable location to build a manufactured home is one of the biggest obstacles to buying one to use as a rental. Although the price of the home may be relatively low, the price of the land must also be considered. Especially in urban or suburban communities, the cost, zoning, and availability of property may provide insurmountable problems.
Finding and purchasing a pre-existing manufactured home may help overcome this obstacle, but it brings up a second common disadvantage of manufactured homes: their depreciating value over time. Whether manufactured homes appreciate sufficiently to make them worthwhile investments for rental properties is up for debate. In some areas, the future value of manufactured homes may be severely constrained by an ongoing stigma.
And lastly, financing a manufactured home might be more challenging than for other kinds of real estate. Manufactured homes are not commonly regarded as “real property” by mortgage lenders. Some lenders might decline to give you a loan large enough to pay for the land and the home itself because they feel that a manufactured home is temporary. While this objection might eventually be overcome, there are still additional requirements for rental property investors to meet. So, are mobile homes a wise investment? The most appropriate response is that they potentially could be, subject to factors like quality, location, and financing availability.
While doing research on every potential income property is a lot of work, Real Property Management of the Triad can help lighten your load. We offer free rental property analyses for investors, which can help you more easily identify whether the income property you want to buy is a profitable option. Contact us online or call us at 336-355-6677 or 336-777-7444 to learn more!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.