Modular homes are put on a foundation but are NOT manufactured homes. No metal frame. Built to local building codes NOT HUD building codes. Built in sections in a factory, delivered by truck and put together on site.
Manufactured homes have a metal frame and are built to HUD building codes.
MOST Manufactured homes never move once placed on site. Cost is prohibitive in most cases.
BOTH can stay where they are placed, can be as large as and 'can' look like traditional houses.
Modulars can look exactly like Manufactured homes and may not.
BOTH are "made of better/more durable construction than homes built on site".
Some areas will allow modular homes but may not allow manufactured homes.
Manufactured homes used to be called mobile homes and are still called that in many cases.
I buy, fix and sell manufactured and modular homes and I sometimes call them mobile homes.
Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes
10y
Financing and refinancing can be an issue with a manufactured home.
I wouldn't look into them if your short-term plan is to refi them. I know the prices can make it seem easy to get into owning them but they should be a cash purchase and slow and steady cash flow to get your return. I know financing can happen but it is not as easy as a traditional home.
Flipper/Rehabber · Vancouver, WA · Member since 2013 · 328 posts · 252 votes
10y
There are some differences with manufactured homes.
Some of the materials are different. For the most part they're pretty straight forward.
Newer ones have sheet rock walls, standard plumbing, etc.
Good idea to walk through a few and talk differences with a handyman or contractor who knows manufactured homes.
Lower cost of entry is the attraction for those of us who work with them.
You can get financing if you live in it. If it's an investment, can't get a standard loan.
If on land or a city lot, you can rent, no problem. BUT if in a park, make sure the park management will allow rentals BEFORE you buy. Some parks do and some don't.
Nanuet, NY · Member since 2016 · 17 posts · 12 votes
10y
Are you talking about a mobile home or a modular home? I am interested in manufactured homes as well but of the modular kind, whereby they stay in place and look like (and can be as large as) a traditional house once they're built. I heard that there are no problems selling or refinancing these types of homes since they're actually made of better/more durable construction than homes built on site. Is this not the case?
Modular homes are put on a foundation but are NOT manufactured homes. No metal frame. Built to local building codes NOT HUD building codes. Built in sections in a factory, delivered by truck and put together on site.
Manufactured homes have a metal frame and are built to HUD building codes.
MOST Manufactured homes never move once placed on site. Cost is prohibitive in most cases.
BOTH can stay where they are placed, can be as large as and 'can' look like traditional houses.
Modulars can look exactly like Manufactured homes and may not.
BOTH are "made of better/more durable construction than homes built on site".
Some areas will allow modular homes but may not allow manufactured homes.
Manufactured homes used to be called mobile homes and are still called that in many cases.
I buy, fix and sell manufactured and modular homes and I sometimes call them mobile homes.
I know how you feel about ROI numbers. I felt the same way for 10 years when I did regular stick builts only and was a mobile (manufactured) home snob.
What I found was the ROI is actually MUCH higher. We can buy fix and sell 10 deals with $100k instead of 1 stick built. And the cash flow and returns are a much higher percentage.
Example - we bought one for $10k, put $3500 into it for fix up. Sold it for $25k cash 28 days later and netted $11,500.
So $13.5k in, $11.5k out in 1 month is 85% ROI and over 1000% annual. How's that?
Saginaw, MI · Member since 2016 · 161 posts · 67 votes
10y
I definitely wouldn't count on appreciation but if you get it at a good deal and plan on keeping it strictly for renting then yes I think at a good price manufactured homes can cash flow nicely BUT use for strictly buy and hold only cause you won't get much resale value because of depreciation, they always seem to go down in price in my market anyway
Sacramento, CA · Member since 2014 · 73 posts · 16 votes
10y
great information. I have been looking into manufactured homes as well. Does anyone know of a lender to lend on these? I'm looking to keep more long term.