Mobile Home? Bad idea? Bad investment?

Asked by Jackie Brown, Pennsauken, NJ Sat Mar 30, 2013

I am a first time homebuyer looking to buy a home and pay less a month than I do now renting (I currently rent a 1br apt for $1000/month plus util.) so that my fiance and I may save up for a real stick home. While home searching, i came across a manfactured/mobile home (2br, 1 bath and all newappliances and cabinets and full size washer and dryer included) for $18,000. It is located in a park with other MH, but looks very well kept. There are no property taxes, just a $20/month lot fee which includes water and sewer. Ive done my math and with prop. Fees andhomeowners ins and paying off the place and all utilities, it would be less than $500/month. This would give us the chance to have a slightly bigger place and more importantly save over $500/month for a stick home. We figure we could sell or rent the place once we were ready to move. It is located in a great area with new shopping center and a huge park nearby. Is this a waste of $? Would we get near $18,000 later on? Thanks

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6
Bill Eckler, Agent, Venice, FL
Sat Jun 22, 2013
Mobile home living serves a true purpose in the American way of life by providing an affordable residential lifestyle and avoiding higher rental fees...although many mobile home communities involve leases for the use of the land and other amenities. These fees can be excessive.

As I se it, purchasing a mobile home is a lot like investing in a car....they typically don't appreciate. So you can normally plan on not being able to recover your money invested over the long term.

Hope this is helpful.

Bill
2 votes
Anthony Picc…, Mortgage Broker Or Lender, Cherry Hill, NJ
Sat Jun 22, 2013
Mobile homes are NOT ideal... financing is difficult and resales are even worse.
1 vote
mjrich52, Both Buyer And Seller, Palm Springs, CA
Wed May 21, 2014
I have a problem here in California, with the way Mobile Home Parks are run. Typically most parks in California don't allow you to rent your house out if for some reason you you can't live there. In senior parks when people pass on, their heirs have an immediate liability of having to pay the space rent and ergo most of what ever their inheritance would be is spent on the space rent until the house is sold. What happens is, they wind up selling these places for next to nothing just out get out and it creates a false market in the parks. We got caught in this when the market crashed and we couldn't sell our house because the competition was so cheap, we couldn't even get a bite. In fact, most of the market now in 2014 is still that false market. Here in Palm Springs, CA, I can rent my little place out because it's a resort town filled with snowbirds and most people don't want to be here in the summer when it sizzles. Here in California space rent can range from what I pay, $380 mo. to about $1000+ at the beach as well as some homes ranging from a few thousand dollars to a million dollars, again at the beach. I know this reply is late in coming. Is it a good decision? Only if you are prudent with home improvement and only if you are in a desirable neighborhood in a great park. Good Luck.
0 votes
Keith & Kins…, Agent, Verona, WI
Sat Mar 30, 2013
I generally think mobile homes are a bad investment. They are like a car, they consistently go down in value. Where real estate generally goes up in value over time (the last 5 years is a poor sample of the historic averages). However, if you are truly saving $500/month as compared to your rental, you could afford to loose $500/month in value on a mobile home and you'd still come out even with renting. It may not be a bad idea in this case. Although, I think you should double check the lot fee. I'm assuming your lot fee is actually $200/month rather than $20? Double check your numbers on that.
0 votes
Josh Barnett, Agent, Chandler, OK
Sat Mar 30, 2013
What is the typical wind speed where you are buying? Mobiles are more prone to being blown over than a homes are.

Something to think about.
0 votes
Elisa Dewees, Agent, Cherry Hill, NJ
Sat Mar 30, 2013
The main difficulty with mobile homes is that they are considered a motor vehicle, not a "house". Therefore, you cannot obtain a mortgage. You need to find alternative financing, just as you would for the car you drive. This makes MH more challenging to purchase and therefore resell.

Check a little bit more into financing the MH and also the $20. A month fee, that sounds very cheap. Most of the MH parks charge a few hundred, that's how the owners who own the land make money.
0 votes
you're incredibly wrong, tied down mobile homes can get financing.
Flag Sun Jul 12, 2015
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