As a De Beque rental property investor, you are continually on the lookout for a good deal on a property. You may be questioning if manufactured homes are a good investment. On the surface, it may appear like the ideal option for your next rental property. Manufactured homes are popular in various different parts of the country. But actually, there are many pros and cons that you should take into account when deciding if a manufactured home is the right choice for your next investment property.
Among the greatest advantages of procuring a manufactured home are that they are often lower in price than other kinds of single-family homes. Mainly because of how manufactured homes are built and installed, their cost per square foot can definitely be significantly lower than that of other properties, even those of similar age and size. And where new construction would be out of your price range as an investor, a new manufactured home will perhaps be a lot more affordable. They are similarly more swift to build, mostly cutting the time of construction to half of traditional homes. That insinuates that you could potentially buy and immediately rent a brand new home for roughly the same cost as a fixer-upper that will take months to have ready for your first tenant.
Further benefits of investing in manufactured homes include the quality and eco-friendly design. Different from earlier years, today’s manufactured homes are usually the same or better than traditionally-built homes in quality. Factory standards for manufactured homes are very exact, which increases the probability that the one you possess will be structurally sound, attractively designed, and energy-efficient, moreover. Quite a lot of those come complete with upgraded insulation both under the foundation and in the walls. They, moreover, offer on-demand water heaters, energy-saving fixtures and appliances, and energy-efficient windows. All of these eco-friendly features can support to reduce utility and maintenance costs.
Be that as it may, there are certain drawbacks to investing in manufactured homes. One of the most serious hurdles to acquiring a manufactured home to utilize as a rental is finding a good location to build it. Despite the fact that the home’s cost would be relatively low, the cost of land must also be factored into the investment property’s overall price. The cost, zoning, and land availability may prove to be insurmountable challenges, especially in urban or suburban areas.
Looking out for and obtaining a pre-existing manufactured home may help surpass this concern, but at the same time, it brings about a second common disadvantage of manufactured homes: long-term value. There is some debate relating to whether manufactured homes appreciate enough to make them worth buying as rental properties. In a few areas, there is a lingering stigma concerning manufactured homes that can severely limit their future value.
One final note, it may be quite hard to finance a manufactured home than other types of property. This is due to the fact that plenty of mortgage lenders don’t consider manufactured homes as “real property.” The perceived impermanence of a manufactured home may give rise to quite a lot of lenders to refuse to loan you the ample amount to cover both the land and the home itself. Though this objection may be overcome with time, it presents additional hoops that rental property investors must jump through.
So, finally, are manufactured homes a good investment? The finest answer is that they can be, depending on the location, quality, and ability to secure financing.
Are you looking for your next De Beque investment property? Your local team at Real Property Management Now can absolutely help! We help connect rental property investors with off-market deals that you can’t find elsewhere. Give us a call today at 970-314-7123 to learn more!
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