RE: Mobile Home purchases with land and without...

[Margie Fuller]

When considering mobile homes whether with property or purchasing property for mobile homes (land with septic tank and well), what things should I make sure I know about?

I've called regarding codes and zoning. They mentioned something about a well inspection etc. What items do you have done before making an offer on a property like this, and how would the finding results either encourage or discourage your purchase or offer amount?

[Christina McCaffrey]

One of the problems we have is that the manufactured home doesn't do well in resale here, but it may be different in your neck of the woods.  If I were considering a manufactured home purchase I would make sure to get the best deal at the beginning because in this part of NC I know that I will not get a lot of appreciation, and I may actually get a decrease in value.  

Also, many of the banks in my area won't finance manufactured homes, and the banks who do offer financing will expect that the home is well maintained and is sitting on a permanent foundation and even then the rates for those loans will be higher.  You may want to check to see if this is the same where you are.  If it is the same in your area, remember that this will cause problems when you finally do sell.  You will be limiting your pool of potential buyers.

If I were purchasing I'd really take time to figure out if the land and the location was worth it and I'd make sure that I could get a good rent and that I didn't have a lot of competition.

I have a client who bought 3 doublewides a few years ago.  He does really well because of their location.  He's not worried because he bought them really cheap, the land is good and the rents are great.  His only concern is that the turnover is a little bit higher, but that may just be the area and not the type of property.

His deal is still profitable because he's doing a lot of the fixes himself and the units are pretty nice.  

I think you should definitely still do the regular home inspections and I'd double check the well water.  If the well has been sitting it probably needs to be treated.  

Just a caution about wells, it is important to know the depth of the well too because if you have a drought the well can run dry.  If your area tends to have some droughts you will want to know that this may be a possibility.