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Updated about 7 years ago, 11/11/2017
Starting out with House Hacking Manufactured Homes any Advice?
Hey BP!
I decided that graduating college and moving to a new state would be a great time to start my real estate investing journey! I have no college debt and quite a bit of savings for a decent down payment. Unfortunately, my job is in the San Jose, California area so the only thing I think I could reasonably afford to buy and house-hack is a manufactured home. I would love input on my plan seeing as I'm not too familiar with the specifics with manufactured homes or the Bay Area real estate market.
Plan: Buy a manufactured home with an FHA loan, 3.5% down payment and rent out the extra rooms.
Current Financial position: No debt, credit history is in good standing (700+ credit score), enough savings for down payment of manufactured home in question, good W2 job waiting for me, previous W2 income is 1 year worth of unsteady (more than one company/not-continuous) internship income.
Questions:
- What are the main differences between manufactured homes and SFH. I've done some initial research and couldn't find much more other than the cheaper construction materials means likely more maintenance (however building standards have improved significantly over the years), land may not necessarily come with the property, and insurance tends to be higher proportionally.
- I believe the conventional loan route is out of the question since I don't have steady W2 income for the past 2 years (only a year worth of internship income, and wasn't at the same company), but I have heard having been a student as well as leveraging the income you plan to make in your new job is enough to get an FHA, is this true?
- If you have any good contacts or resources for learning up on the area's market and/or about manufactured home investing/house hacking I would greatly appreciate it!
Thanks for reading!