Home Buying in Portland>Question Details

Cat, Renter in Topeka, KS

Are Mobile Homes A Worthy Rental Investment?

Asked by Cat, Topeka, KS Thu Feb 28, 2013

I am looking at a really nice looking mobile home in the Portland area and thinking if i bought it outright i'd only have to pay the $545 HOA fee per month. i could rent it out for over $1000 i think (its a 3 bedroom). is a mobile home ever worth buying? people tell me all the time they are a waste of money and will only depreciate. any thoughts on that from realtors?

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8
Barbara Hahn’s answer
As long you never expect to sell it for a profit and enjoy the extra income of renting it out. It is true they only depreciate. I would make sure what they're going for rental wise especially with more people buying since interest rates are low and rents are high.
1 vote Thank Flag Link Thu Feb 28, 2013
Thanks for all your responses. Overall it sounds like a terrible idea so I won't be doing that.
0 votes Thank Flag Link Sat Mar 2, 2013
Rents in the parks are low compared to single family homes. They are private property so talk to an accountant about write offs. High HOA fees and you can expect them to rise6-9% a year. Any they only depreciate in value. If you owned the land they sit on that is a different case in the price you will spend probably 5-6 times more and they do not hold the value compared to a normal home on a foundation. Good luck to you. Tom Inglesby, Broker RE/MAX Equity Group
0 votes Thank Flag Link Sat Mar 2, 2013
We are all in agreement on this one Cat! You are better off utilizing your funds as a down payment and purchasing a SFR. In this market you may be able to find a SFR investment property near the same payment you are talking about with the manufactured home. However, you will not be dumping your money into a depreciating asset. While we can't look into the crystal ball, the Portland real estate market is expected to see some steady appreciation over the next few years. I would be happy to assist you in finding a low cost investment property in the area :)

Marshall Rosario
Customer Service Manager
503-427-9233 x108
fax 503.200.2287
marshall@stellarnw.com
http://www.stellarnw.com
0 votes Thank Flag Link Fri Mar 1, 2013
It depends on if its in a park. If so they normally require owner occupancy not rentals. If its on its own land then yes they can be a great investment.
0 votes Thank Flag Link Fri Mar 1, 2013
Not a good investment. A depreciating asset unless you own the park.
Let's talk about alternatives?
0 votes Thank Flag Link Thu Feb 28, 2013
As someone who has been in the Portland real estate market on the finance since since 1989, I have to say that Barbara gave you very good advice.

Mobile homes are in general not a good investment. You pay higher mortgage rates on them, they only depreciate, and when they get to a certain age are very difficult to finance making selling them enormously challenging requiring you to carry a seller contract.
0 votes Thank Flag Link Thu Feb 28, 2013
As a straight up rental investment, they aren't a great investment- you will always pay HOA/site rental, there is zero appreciation and you will always have repair and maintenance expenses.

There are people out there who specialize in purchasing mobile homes for rock bottom and flipping or renting them. If you know what you are doing in this niche investment market, you can probably do pretty well, but it will take a lot of work and time.


You can google "making money with mobile homes" or search that term under Amazon.com- there are a few books by people who specialize in it- that would be a good place to start if you decide you may want to consider it.
0 votes Thank Flag Link Thu Feb 28, 2013
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