Modular and manufactured homes for short-term rental investment

[Lynette D Nickleberry]

We are in the process of building a portfolio of short-term rental properties in the andarondacks (Lake George). Wondering about the viability of including a modular or manufacturered home with lots of private land (we'd add pool, jacuzzi and other recreational amenities). The CoC ROI is impressive, but of course there is no growing equity in modulars (correct me if I'm wrong). Have others used modulars for this reason? Also, would you vacation in the such a place? Pros and cons? Horror/success stories?

[Cheryl Schlehuber]

I'm assuming you're referring to manufactured home vs. modular. There is such a difference between the two and many are confused by the term. Manufactured is set with the steel carriage left in, built to HUD standards vs. BOCA code...Modular can come as high end as any "on site custom built home and appraisal values are the same". Manufactured also sometimes referred to as double wides, usually have a lower pitch roof, much cheaper to purchase and do not hold values in most areas. I've seen some great manufactured parks in well cared for areas but they get a bad reputation for a lot of good reasons.....It is however a much more affordable way to purchase a home, it's just harder to sell and finance them....Ok, sorry, that's my REALTOR hat going back on...as we deal with them in more rural areas of our community. There are some beautiful and well maintained manufactured home parks..I've toured them......like everywhere, it's all about the level of development you are looking at. If you can't afford a $500,000 condo on the ocean, a $140,000 manufactured home in an oceanfront park can looks pretty good. A lot of vacationers (& snow birds) in many areas of the country have no problem staying in a manufactured home if well cared for and amenities are available. Bottom line, it may be an affordable option vs. modular or stick built (custom home) which have become unaffordable for many.