You are probably constantly searching for a great deal on a property if you are a Spokane Valley rental property investor. You might be wondering whether manufactured homes are a wise financial decision. It can appear to be the best choice for your next rental property at first glance. In many different areas of the U.S.A., manufactured homes are very common. However, there are several advantages and disadvantages to consider before deciding whether a manufactured home is the best option for your next investment property.
The fact that manufactured homes are frequently more affordable than other single-family home types is one of the main benefits of buying one. Due to how manufactured homes are constructed and installed, their cost per square foot can be significantly lower than that of other properties, even those of comparable age and size. Furthermore, a new manufactured home will probably be much more affordable for you as an investor than new construction, which may be out of your price range. They are also easier to construct, frequently taking half as long as conventional homes. This means that you could purchase and rent out a brand-new home for roughly the same price as a fixer-upper that would take months to prepare for a tenant.
Quality and eco-friendly design are additional advantages of purchasing manufactured homes. Today’s manufactured homes are usually of comparable quality to traditionally built homes, if not superior to them. It is more likely that a manufactured home you purchase will be structurally sound, attractively designed, and energy efficient due to the stringent factory standards. The foundation and walls of the majority already have upgraded insulation. In addition, they offer energy-efficient windows, energy-saving fixtures and appliances, and on-demand water heaters. Costs associated with utility and maintenance can be decreased by all of these eco-friendly features.
But investing in manufactured homes has some disadvantages as well. Finding a suitable location to build a manufactured home is one of the most difficult challenges in purchasing one to use as a rental. The price of the land must also be taken into account even though the home’s price may be relatively low. Especially in urban or suburban communities, the cost, zoning, and availability of property may provide insurmountable problems.
Finding and purchasing a pre-existing manufactured home may be a solution to this problem, but it raises a second major disadvantage of prefabricated homes: depreciation. Whether manufactured homes appreciate sufficiently to make them worthwhile investments for rental properties is up for debate. The future value of manufactured homes may be severely constrained in some places by an ongoing stigma.
And lastly, financing a manufactured home might be more challenging than for other kinds of real estate. The term “real property” is not often used to describe manufactured homes by mortgage lenders. Some lenders might decline to provide you with a loan large enough to pay for the land and the home itself because they feel that a manufactured home is temporary. While this objection might eventually be overcome, there are still additional requirements for rental property investors to meet. Are manufactured homes a wise investment, then? The most appropriate response is that they potentially could be, subject to factors like quality, location, and financing availability.
Are you looking for your next investment property? Our Spokane Valley property managers help connect rental property investors with off-market deals you can’t find elsewhere. Contact us online 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.