Is Buying a Mobile Home a Good Investment
Mobile homes investing has become a booming business in the real estate field with impeccable reasons. Millions of people in the US live in mobile homes, and the number continues to shoot up as more people are looking for cheaper housing options.
Furthermore, the small house movement has encouraged more people to want to live smaller. As a result, many real estate investors are yearning to make a significant cut from buying mobile homes for sale in gardner. So, is it wise to invest in mobile homes? Let us find out.
As a real estate investor, one can buy a home to resell it or lease it out. This article investigates both situations.
Mobile Homes Appreciate Just Like Other Homes
Mobile homes for sale in gardner do not always go up in value, as people found out many years ago. When houses increase in cost; however, the value of mobile homes also increase. There is a lot of convincing evidence that the value of mobile homes is rising.
If a person wants to invest in a mobile home, they should consider getting an old mobile home because it has less depreciation on its body.
Mobile Homes are Cheap to Maintain and Repair
One exciting thing about mobile home is that homeowners do not have to work with contractors, bluntly speaking, if a person owns a single family home or multi-family homes, it can be daunting and stressful to deal with contractors.
By not owning the actual homes that the tenants live, it then means that the owner of the mobile phone must cater for repairs, maintenance, and other upgrades on the houses.
While the owner of the mobile home requires an account for the expenses for the maintenance of the property, it is more likely to be much less than the amount they would spend on traditional homes on land.
It is Easy to Finance a Mobile Home
Many people still think it is challenging to finance a mobile home. A mobile home that is on a rented lot can get a loan of up to $70,000 and up to $90,000 on a property that is attached to all lot.
The Consumer Financial Protection Bureau found out that over 2000 organizations reported at least one mobile housing purchase loans in 2012( there are no updated statistics yet).
The Disadvantages of Investing In Mobile Homes
A real estate investor will perhaps make money, but until then, one needs to consider the social taboo. Many people regard mobile homes as a cheaper option for low-income housing, but this does not represent the characteristics of the residents.
In addition to that, the return on investment is not immediate. If you hope to make a lot of money, then investing in mobile homes will not guarantee you that, especially if one is hoping to make money from flipping mobile houses.
It will be challenging to find potential home buyers who are willing to pay in full. In addition, it will exceptionally be challenging to secure financing for a mobile home purchase.
So, is it wise to invest in mobile homes?
Individual states may need investors to secure a mobile home dealer investing license first before buying several units. Furthermore, if a particular real estate investor likes to work with realtors, then this is going to be difficult for the person because they will be in direct contact with the occupants, as far as mobile homes are concerned.
In addition to that, some investors are born with the entrepreneurial talent for turning a dime into dollars. Therefore, if this is not a strength that a person has, then it is wise to invest in other types of businesses.