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Investing in a Manufactured Home: A Guide
In 2021, approximately 6.12 million homes were sold. While many, possibly even most, of those homes went to individual buyers who planned to live in them, some went to real estate investors.
Some of those investors will simply keep the property until they can sell it for a profit. Others will turn them into rental properties.
Yet, buying a traditional 2500-square-foot home isn’t the only method of investing in homes. You can also invest in manufactured homes.
Not sure what that means for your potential future investments? Keep reading for the essentials you need to know about manufactured home investments.
What Are Manufactured Homes?
Odds are good that the term you’ve heard tossed around is mobile home or trailer. While many people use the terms mobile home and manufactured home as effectively the same thing, they aren’t.
The Department of Housing and Urban Development got serious about building codes and safety for mobile homes in the mid-1970s. Mobile homes are the homes built prior to those new building codes. The ones built after the changes are manufactured homes that meet the requirements.
In simplest terms, a manufactured home is one built to completion or near completion in a factory. Then, it’s shipped to wherever the owner has the land and zoning to put it.
Benefits for Investors
Manufactured homes offer several key benefits for investors. Right at the top of the list is the cost of purchase. While a traditional house might cost $300,000 to $400,000, a manufactured home typically goes for around $111,000.
That means you can get three manufactured homes for the cost of a single house. With lower initial costs, you can maximize your return on investment with rent.
Manufactured homes are also ideal for young singles with a primary focus on advancing their early career. They want more affordable housing until they get their first few raises. That makes manufactured homes an attractive option for the cost-conscious young professional.
Manufactured homes typically adopt a more conservative, evergreen approach to interior design. For example, they favor neutral interior colors over more trendy options that might turn off potential renters.
Things to Consider with a Manufactured Home
If you plan on investing in a manufactured home or several for rental purposes, you’ll want to make sure that you consider a few key things. For example, you’ll want to make sure that you pay close attention to the zoning laws in your town or city.
You’ll also need manufactured home insurance to protect your investment.
Manufactured Homes and You
A manufactured home or several manufactured homes can make a good investment for those in the rental property game. You face much lower initial costs than buying a traditional house, at least in most locations.
That lower price lets you boost your profit, while also letting you offer more affordable rent. That can attract young professionals looking to focus more on their careers than their homes.
Looking for more tips or insights about real estate or investments? Check out our Business section for more posts.
Kenneth is a proud native of sydney, born and raised there. However, he pursued his education abroad and studied in Australia. Kenneth has worked as a journalist for almost a decade, making valuable contributions to prominent publications such as Yahoo News and The Verge. Currently, he serves as a journalist for The Hear Up, where he focuses on covering climate and science news. You can reach Kenneth at bloggerjohnsmith12@gmail.com.