Consider These 3 Things
Before you invest in manufactured homes, there are a few things to consider.
Buying a Manufactured Home
If you are planning to buy a new manufactured home, we recommend that you investigate at least three different manufactured home retailers. Start by doing an online search and reading reviews from previous customers. You can also ask around your network to find out if anyone you know has recommendations of good manufactured home retailers. Once you have a few promising options, call the companies and ask any questions you may have, and get a price quote.
When you buy a new manufactured home, you can choose the exact layout and design that you want and add things like fireplaces, custom cabinetry, walk-in closets, and other upgrades that can set your rental unit apart from the competition.
If you are considering purchasing a used manufactured home, work with a local real estate agent to find available units in your target area. The main advantage of buying a used home is that it will be more affordable, but you will need to carefully assess the home and inspect it to ensure that it’s still in good condition. Otherwise, you could end up spending thousands on repairs which could make a used home ultimately more expensive than a new one.
In either case, you should check out the features of the home that can impact the rent you may be able to charge, the resale value, and so forth. Things to look at include finishes like countertops and fixtures, insulation quality and rating, the type and age of the roof, the type and condition of the flooring, the type and condition of the siding, and whether there are built-in water cutoff valves.
The Costs of Purchasing a Manufactured Home
New manufactured homes can cost anywhere from $15,000 to more than $100,000, so they represent a significant investment. Other costs to factor in include the property on which it will sit, the property taxes, insurance, the cost of transporting the home to the site, and utility and maintenance costs.
Where to Locate the Home
Unless you already own an appropriate piece of land, you will need to purchase one. A strategically located manufactured home will appreciate in value and generate a very good return on your investment property – just be sure the property you plan to put it on is zoned for manufactured homes.
How to Start Investing
These are all things to consider when purchasing a manufactured home and at TFS Properties we address all of these when we advise our investors.
We help investors find the home, the land to put it on, and our homes even have a maintenance warranty in place! To get started contact one of our real estate agents at TFS properties.
