Should I buy a mobile home to live in?

Question

I have minimal experience in real estate (only one sell), but I continue to educate myself with almost every second of every day. I continuously stream audiobooks on the way to work, at work, on the way home, while doing chores at home, etc.

The more I educate myself, the more I'd like to live more frugally to put my money towards investments.

My situation is different than most. I make good money (I'm only 23 but make $25/hr) but I'm in a contract position, and my jobs stability is a little sketchy. In the last 3 years I worked this job, was laid off for a year due to lack of work and worked in a warehouse for $13/hr after going 6 months without work, and now I'm back where I was originally. So in 3 years, ive only worked a solid 2. So I'm sure you can see my concern with financing a home.

Also, I didn't go to college (I think it's more of a business than anything depending on your degree) so for me to make this kind of money where I am is rare. I can't just go find a more reliable job.

With that being said my parent's own a parcel of land beside them that they said I could put a mobile home on. Is this a good decision?

A newer home can be bought and taken to their property for about $30,000. I think if I paid this off asap and was living rent free, it would be easier for me to start my real estate endeavors. What do you guys think?

JD Martin · Answer

If you can get titled to the land, aside from having a place to live for low cost, if you move you can rent it out. If not, then you have your property on someone else's property. And if you have to move for work, what do you do with the mh?

I would consider it for sure if you can get titled on the property. Otherwise, I would house hack a duplex or triplex.

Christopher Charles · Answer

@Chris Hall

Take the money and put down on a Multifamily Apt complex 5 units or more.( Find a mom and pop couple motivated to sell, list source, Mellisa data, 24/7 agent pro, oooorrr just build some connections with a couple CRE agents (loopnet.com)(Reach out if you need a good script to introduce and sell yourself to these guys) let them know what your after and have them find you one) Either way, say you get 10 units rent the others out live in one. Boom passive income. Need to raise more of a down payment? Start headed out to your local REIA's and Chamber of commerces. Let them know your plans, the guys out there in those groups typically all are retired professionals with large 401k's get good with your words offer some good Interest on there Dough and again boom...More funds.

Stay Lit

Chris Hall · Answer

I just think it's a good idea to pay a cheap mh off and live rent free while putting more money that could be spent on rent into investments

Chris Hall · Answer

Thank you for the replies thus far! Any other opinions are also welcome

Chris Hall · Answer

@Colleen F. there's already a renter next door, there's actually a mobile home already there but the owners want too much for me to justify. The current tenant is really private and all. My parents don't mind neighbors, they just didn't want a bad one to come along if that makes sense.

Chris Hall · Answer

@David Song my market is very low considered to the rest of the nation. A typical single family, 3 bed 2 bath with standard design and nothing fancy in terms of tile or design would be about $100k. Rental prices on a home like that go from $900/mo - $1,200, especially if you rent by the room to college students.

My only concern with house hacking are

A) I'm extremely introverted and couldn't imagine keeping sanity while having roommates. I know this is an asinine excuse but I really can't be even elaborate. Everyone my age in my town parties heavily and I couldn't imagine keeping my sanity in the meantime.

B) my job situation not being so concrete worries me. If I were to buy a mobile home, I could pay it off fairly quickly. They're about $30k and I have $10k cash almost already. My plan would be to ultimately keep about a $10k safety net. Finance the mobile home, put about $5k down. Keep the other $5k. Save like crazy until I have an additional $5-$10k more in cash than I owe on the home. Pay it off in chunks at a time. THEN jump into a multifam investment so I know I'll keep my sanity, but also own a home free and clear so if something goes wrong, I still have leverage.

Maybe I'm being too conservative?

Chris Hall · Answer

any other opinions?

Chris Hall · Answer

Forgot to tag you! Also, I'm sure my parents would consider putting me on the title to the land. It's basically an extension of their own land. They bought it purposefully to know that a crazy neighbor wouldn't come along, so I'm sure they'd work with me on the ownership.

Should I buy a mobile home to live in?

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