Should you Invest in a Manufactured Home

Call (866) 720-2207

73

Matches

Reset

182

Matches

Reset
Your search results

Should you Invest in a Manufactured Home

Posted by Home Quest on January 25, 2024
0

As manufactured homes become increasingly popular, they are securing their place as a solid real estate asset for both home buyers and investors. While many communities cater to land leases and owner-occupied manufactured homes, some parks do allow the homes on their property to be rented, particularly if the homeowner also owns the land.

“Manufactured homes and ADUs are both great investments for a variety of buyers,” shared HomeQuest partner and sales and marketing manager Shane Joffe. “We are seeing first-time homebuyers, those looking to downsize and retire, and investors purchasing more of these homes for a variety of purposes.”

Some of the positive aspects of purchasing a manufactured home include:

  • Affordable Assets. Manufactured homes are vastly more affordable than traditional site-built homes, especially in expensive areas like California. They are less expensive to produce because they are made in a controlled factory setting, and over time, are also less expensive to maintain. Manufactured housing typically has a higher tenant retention rate than similar assets, so if you choose to rent your home, it won’t sit vacant for long. Investors also often incur fewer maintenance costs than traditional site-built homes. If there is any depreciation, this can be deducted as part of the home’s value against operating profits.
  • Quality Construction. Today’s manufactured homes are built with quality materials and use the same structural design and construction practices as site-built homes as they are built to HUD code. From fire safety to energy efficiency, manufactured homes feature insulation, energy-efficient windows, Energy Star-certified appliances, solar options, and more, so homeowners and investors know the home was built to code at every step of construction.
  • Luxury for Less. Manufactured homes offer many of the same features and amenities as found in site-built homes, with luxury options available through the manufacturer upon ordering. Designer finishes and fixtures, custom flooring and cabinetry, and options such as stand-alone bathtubs, fireplaces, and on-trend barn doors are just a few of the upgrades available today.
    It’s also not uncommon to see a manufactured home with vaulted ceilings, decorative beams, kitchen islands, and even wrap-around porches and garages. Some manufacturers also offer board and batten, stacked stone, and other options to customize the exterior façade.
  • Seamless Sale. Local, state, and federal jurisdictions are making it easier than ever to build, permit, and place manufactured homes and ADUs to help address affordability issues and alleviate the widespread housing shortage. A common misconception in California is that cities or HOAs can block homeowners from putting in an ADU, but that is not true.
    HomeQuest is happy to guide home shoppers through the selection, purchase, delivery, and permitting process,  which includes exploring financing options. Buying a manufactured home, whether as an investor or a homeowner, is similar to financing a tract home. As we discussed in an earlier blog post, your assets, creditworthiness, debt-to-income ratio, and employment history all play a part in your ability to qualify and purchase a manufactured home.

Whether you’re making a long-term investment, planning on renting out a manufactured home, or looking for a more affordable way to live, a manufactured home can be an excellent idea and solid investment. Contact us at HomeQuest to learn more.

Event Preview

Compare Listings

Chat With an MH Expert

Incoming Call From

Connecting...
1 2 3
4 5 6
7 8 9
0

Connecting...
1 2 3
4 5 6
7 8 9
0