Replace current mobile home with a new/used mobile home or build?

[Vega F.]

Hi everyone,

I'm back after cleaning the mobile home unit I posted about a few weeks ago. After further inspection and a bit of number crunching, I have decided to completely demolish the existing unit. Now, that leaves me with a few options:

1. Buy a used mobile home and set it up on the property

• Cost: ~$30k -
  10% down = $3000
  Lifespan: 15 years
  Monthly Rent: $550

2. Buy a new mobile home

    Cost: ~$60k
   10% down = $6000 down
  Lifespan = 30 years 
  Monthly Rent: $800

3. Hire a GC to build a new home
  Cost: ~$120k
 20% down = $24k
  Lifespan: ~80 years or more?
Monthly rent: $950

Running the numbers is the easy part - If I want to cash flow as quickly as possible with as little money out of my pocket, it makes sense to purchase the used mobile home. However, my family has 15+ rentals with most of which are mobile homes. For as long as I can remember, there have been issues with shifty tenants failing to pay rent, random components of the homes breaking on a regular basis, which is accompanied by a sense of unease.

There is also the undeniable truth that mobile homes quickly depreciate, offsetting any positive cashflow over the course of the home's lifespan, when in another 15 years I have to purchase another mobile home to replace the decrepit replacement.


This is where I question what makes the most sense: immediate cash flow or investing in an asset (a solid construction home) that will only grow in value.

Thank you for your input and help!