Manufactured homes or mobile homes are pre-made structures assembled in the factory and transported to the site where they are placed. These can be a vacation home, primary residence, or rental properties. Currently, around 22 million people are living in mobile homes. Many mobile homes have been observed in Louisiana, North Carolina, Texas, Florida, and Alabama. Thus, the question arises, are mobile homes a good investment? Therefore, let’s start by checking the advantages of purchasing a mobile home.
- Mobile homes are cheaper than conventional rental properties due to mass production.
- Mobile homes are cheaper. Thus, you can install hardwood flooring, granite countertops, etc. With upgrades, you can charge more when renting out the house.
- In mobile homes, the tenants are responsible for the maintenance and repairs. Thus, you do not have to worry about dealing with contractors.
- A mobile home built as per the United States Department of Housing and Urban development code is deemed safe from natural disasters. Thus, you need not worry if the property is located in high-risk zones for storms, hurricanes, or other national calamities.
- Since more people are looking for affordable accommodation, mobile home demand increases.
- The turnover rate is much lower than apartments, multi-family dwellings, and single-family homes.
When you are trying to decide, are mobile homes are a good investment, you need to look at both advantages and disadvantages and then decide. Let’s look at the problems of purchasing a mobile home:
- A lot of people have a prejudice against mobile home living.
- Mobile homes depreciate faster than traditional homes. You may also have to buy land on which the mobile home will be placed.
- Advertisement must be at the right place since traditional tenants may ignore the listing.
- You will have to pay in cash ultimately.
Do Mobile Homes Make For A Good Investment?
If you are looking for an alternative form of property investment, you can go for mobile homes. But, you must be ready to handle the disadvantages. If the property ends up being a cash flow one, it will be an excellent property investment. If not, you must move onto the traditional market of real estate. With a little bit of research and pre-planning, there is a high chance that the mobile home you purchase turns out to be a perfect investment option.