Home Buying in Apple Valley>Question Details

Marilyn Edwa…, Home Buyer in 68933

Is a mobile home in an Apple Valley 55 & older park a good investment? Mobile price $15,000, space rent $348. Seller will carry paper w

Asked by Marilyn Edwards, 68933 Tue May 17, 2011

"good down." MLS Number 400315

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7
Marilyn,
It would depend on a number of things, such as the age of the mobile home, the park it is located in, and location of that park.
However, mobile homes are not generally a good investment for the following reasons: They are not attached to the land, they depreciate in value as opposed to appreciate over time, and they require specialty parts for repairs.
If you are going to use it as a rental, it may have some investment potential, but you stated that it's in a 55+ park, so that limits your field of renters. In today's market I don't see you recouping your money or even seeing much of a return on it.
Whatever you buy, be sure to get a complete inspection on it. Do not rely on the sellers word or even a bunch of receipts. Hire someone who has a good reputation for inspecting the type of home you plan to buy.
1 vote Thank Flag Link Tue May 17, 2011
Just out of curiosity James and this is on another matter. Do you know where I can obtain local information about the sales activity in MH rental parks during the past 10 years. I'm doing a study as a consultant for a client and this would really help me considerably. HCD does not keep accurate info on title transfers and as I understand it Apple Valley manages the parks within their jurisdiction but they apparently don't keep record for more than a few years. Thanks for your feedback.
0 votes Thank Flag Link Tue Aug 16, 2011
If you live in the High Desert area, and you know the condition of most senior MHPs and you're a certified building inspector, you're far from unqualified.
Currently in this area, people are practically giving away mobile homes. Check the MLS.
What may be true in Encinitas is not necessarily true in Apple Valley. The number one, two and three rule of real estate: Location, location, location.
I believe John when he says he hasn't lost any money on manufactured homes. I don't know that is true of the people he's sold them to or placed them for.
If this were about a MH built after 2000, I'm pretty sure it wouldn't be $15K and the owner wouldn't be touting "owner carry". In this area there are Lonnie Scruggs type investors (not that that's a bad thing in and of itself) or park owners who buy old mobile homes back from the estate of the deceased, then carry paper in senior MHPs and do so for the same MH several times. That may or may not be the case here.
0 votes Thank Flag Link Tue Aug 16, 2011
Here we go again with unqualified generalizations.

"Mobile homes are not "generally" a good investment for the following reasons: They are not attached to the land, they depreciate in value as opposed to appreciate over time, mobile homes usually require parts for repairs which may be hard to find"?

Pure hogwash! I've been in the MH biiz for 3 decades and have never lost money on one yet regardless of their age. Being attached to the ground is only important if you own the land it sits on. In that case you will have to install a engineered certified foundation system and obtain the California required 433a documentation if you are attempting to qualify for an FHA forward or reverse mortgage which is only required for resident owned purchases.

As I said in my earlier comment:

"If it's in a resident owned park and the home was built before 1976 you probably couldn't get it financed if you needed to go that route."

"But don't buy into the notion that MH's lose value. Not true. If you buy a new home (2000 or newer) you're buying a "factory built home" which is built exactly like a site built home only better. Where you do lose money is in a non rent controlled rental park. The higher the rent the lower the value of your home. That's the magic formula."

Once again if you buy a MH that was built after 1980 you will not need to worry about looking for parts. That's rediculous. They're made exactly the same way any site built home is. If you need "parts" you can find them at any Home Depot or Lowes.

I would love to extend an invitation to you and especially any/all RE professionals who continue to pontificate on subjects and topics they know little about to join me for a factory tour sometime. Perhaps if some professionals took the time to better educate themselves they wouldn't be so hasty and presumptuous in making uneducated pre drawn conclusions that serve to mislead a potential buyer.

Now that I've vented let me once again say that if the home was built before June 15, 1976, (pre HUD) you may have difficulty finding parts because that generation of "Factory Built" housing was manufactured like a trailer. Additionally, there were a lot of caustic, toxic and carcinogenic materials that were used in those days that could be harmful to your health.

If it's a nice park and you think you would be comfortable living there you could purchase the home for 15k, pull it out and put in a new one. New MH's don't lose value rental park or not unless the park management gets carried away with rate increases. Then you could lose value in your home.

Additionally, if the park is run down and mis managed that could also have a negative impact on value. But that will happen in any neighborhood Factory or Site Built.

If you would like more accurate and concise information about "Factory Built" housing feel free to log onto our website or contact me at onthelevel@cox.net. We've been a licensed general contractor, manufactured home contractor, manufactured home dealer and developer since 1986. We are also a real estate broker, investor and property management company specializing in "Factory Built Housing"
0 votes Thank Flag Link Tue Aug 16, 2011
Marilyn,

The age of the mobile home, the park it is located in, and location of that park fadctor into if it is a good investment or not.


Mobile homes are not "generally" a good investment for the following reasons: They are not attached to the land, they depreciate in value as opposed to appreciate over time, mobile homes usually require parts for repairs which may be hard to find.


If it's in a 55+ park, so that limits your field of renters and ALSO can you rent the out in the park check the restrictions in the park.

I don't see you see much of a return on a mobile home purchase.

Pay to get the home inspected. Go to my website and there is information on "Why Your Should Obtain a Home Inspection"
Web Reference: http://www.BettyKerr.com
0 votes Thank Flag Link Tue Aug 16, 2011
We really need to cut to the chase here. What year is the MH? Is the park a rental or resident owned community? If it's in a rental park you probably couldn't use it as a rental anyway because most rental/lease parks have rules and regs against it.

If it's in a resident owned park and the home was built before 1976 you probably couldn't get it financed if you needed to go that route.

But don't buy into the notion that MH's lose value. Not true. If you buy a new home (2000 or newer) you're buying a "factory built home" which is built exactly like a site built home only better. Where you do lose money is in a non rent controlled rental park. The higher the rent the lower the value of your home. That's the magic formula.

If you need some real professional advice and not just a bunch of outdated attitudes and assumptions you should give us a call or log onto our website. We'll set you straight.
0 votes Thank Flag Link Sun Jun 5, 2011
Hi Marilyn,

I would have to agree with James Foy. His reasons for this not being a good investment are all true. As a rental you would be limited to a smaller group of renters and if the park increases space rent as so many do then you may find that your rent collected is not covering your costs depending on the type of rental agreement you have. This type of investment might give you a small monthly income but as James mentions recouping your initial investment may be a problem if you should decide to sell at a later date.

Good Luck.
0 votes Thank Flag Link Tue May 17, 2011
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