Thoughts on Manufactured Homes?

[Dillon O'Connell]

Hi BP community, 

After listening to episode 851 with Jason Velie on the podcast I have become inspired to look into manufactured homes. I find this asset class interesting because I am new to REI and as far as I'm aware, there is far less competition and the price of entry is more affordable.
I thought I would connect with this community to get your insights on manufactured homes, particularly in the Central Florida market. I'm curious to know if there are any specific factors or considerations I should be aware of. What are your thoughts?

Thank you!

[Jason Wray]

Dillon,

If you are going to use  a Bank/Lender you want to make sure you are focusing on certain requirements.  Due to guide lines most banks and lenders have guide lines that require a few things.  MH must be a double wide, In Florida must be on a permanent foundation/concrete slab, and have hurricane tie-downs.  Must not be older than June 1976 while other lenders want to see something less than 20 years old.  

MH cannot be moved from another piece of land must be brought in by builder and axles removed. You will also need a foundation inspection report in order to pass all the above as well as inspection. All in all Mobile/Manufactured can be a great investment since they are in most cases 50%-60% less than a SFR build from ground up.

If you are buying as a primary you can include the land into the sales price if you locate a lot and want to put in a MH.  Rents in some cases do not seem to be effected unless the MH is much smaller than the local comps.  I am here in Saint Petersburg, Florida and Manufactured homes are all over the map.

Stay away from buying mobiles or manufactureds in MH parks where the lot is rented.  There is very little money in those unless you are buying the mobile home park.  You can make money but there is a little more of a hassle collecting rents due them being transient in nature.