Skip to Content

Get a FREE assessment of your rental property. Start here!

Get a FREE assessment of your rental property. Start here!

Are Manufactured Homes A Good Investment?

Community of Trailer Mobile Homes in Sunny NeighborhoodMost Spokane Valley rental property investors are always looking out for good deals on properties. You may have wondered if manufactured homes are a good investment. On the surface, it would seem like it is the ideal option as an addition to your rental properties. Manufactured homes can be seen in many different parts of the country. But you should consider some pros and cons first before deciding on getting a manufactured home as your next investment property.

Perhaps one of the biggest advantages of purchasing a manufactured home is the price. They are often priced much lower than other types of single-family homes. Because of their design and construction, manufactured homes usually have a lower cost per square foot compared to similarly sized properties. And if you are an investor who does not have enough budget for new construction, you will find that a new manufactured home will be more affordable. They are also faster to build than traditional homes. Comparing that to getting a fixer-upper, you can buy a brand new home and rent it out immediately to your first tenant!

Other advantages of investing in manufactured homes are the quality and eco-friendly design. Present-day manufactured homes are made with the same or better quality than traditionally-built homes. Manufactured home factories follow very strict standards so there is a very high chance that the one you buy will be structurally sound, attractively designed, and energy-efficient, as well. They also have upgraded insulation both under the foundation and in the walls. They also offer on-demand water heaters, energy-saving fixtures and appliances, and energy-efficient windows. These eco-friendly features will help in reducing your utility and maintenance costs.

On the other hand, there are also some disadvantages to investing in manufactured homes. One of the biggest challenges to buying a manufactured home to use as a rental is finding an ideal location to build it. You will have to add the cost of land to the relatively low cost of the home to come up with the overall price of your investment property. You may encounter cost, zoning, and land availability concerns, especially in urban or suburban areas.

You could acquire a pre-existing manufactured home instead, but this will bring up another common disadvantage of manufactured homes: long-term value. Many still doubt if manufactured homes will gain or retain enough value to make them good rental property investments. In many places, manufactured homes still come with that stigma, which limits their future value.

Lastly, it might be harder to get financing for manufactured homes than other types of property. This is because many mortgage lenders don’t consider manufactured homes as “real property.” The perceived impermanence of a manufactured home may cause some lenders to refuse to loan you enough to cover both the land and the home itself. Even if this stigma may be overcome after some time, it is a pressing problem current rental property investors must hurdle.

So are manufactured homes a good investment? If you overcome the challenges of location, quality, and ability to secure the financing, they could be.

Are you looking for your next Spokane Valley investment property? Your local team at Real Property Management Spokane County can help! We help connect rental property investors with off-market deals that you can’t find elsewhere. Give us a call today at 509-462-1042 to learn more!

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.