Author Topic: Manufactured housing / mobile homes  (Read 3679 times)

gales78

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Manufactured housing / mobile homes
« on: February 19, 2015, 01:30:08 PM »
I have this idea to get an acre or two (about $20k around here) and put a new or pretty new mobile home on it. My total home price would be under $100k. I'm in Oklahoma so I would obviously get a storm shelter put in for about $2600. 

I know mobile homes depreciate, not appreciate, but we could have such low housing costs!

Am I crazy? Anyone else try this? I have a beautiful and non-moustachian house at present.

Kaydedid

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Re: Manufactured housing / mobile homes
« Reply #1 on: February 19, 2015, 02:00:04 PM »
This is similar to what we plan to do in a few years, although with a bit more land.  A few considerations:
1.  Check with your county and township to make sure they allow this, and for what zones.  By us, you can't put a mobile home on anything less than 5 acres if it's zoned agricultural, which most acreage is.  The 1-2 acre parcels zoned as residential can't have a mobile home on them.   These rules tend to be common and, depending on your local government,  difficult to get exceptions for.
2. What kind of utilities are you planning for?  A new well and septic can easily go over 20k, especially if you're looking at a mound septic system.  There can also be five-figure expenses for running electric to a property that doesn't already have it.  Electric or propane heat can get costly really fast, especially if you are used to natural gas prices.
3.  Make sure to account for added transportation costs.  Most acreage tends to be out in the country, which might add to commutes and reduce bikeability.  Also, car maintenance is often more rigorous if you live off a dirt road or have a long, unpaved driveway.
4.  Consider a used mobile home instead of new.  These depreciate a ton at the beginning, like cars.  Whichever route you take, make sure you add in costs for transporting the mobile home and prepping some sort of foundation for it.
5.  The equity on something like this is usually low, which is something to think about if you're interested in a HELOC or something similar down the road.

Roots&Wings

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Re: Manufactured housing / mobile homes
« Reply #2 on: February 19, 2015, 02:48:52 PM »
Some other past threads on this, e.g. http://forum.mrmoneymustache.com/welcome-to-the-forum/manufactured-homes/

Also, resale value/financing is a consideration (cash buyers only in many places or mortgage amount for the land value only).

gales78

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Re: Manufactured housing / mobile homes
« Reply #3 on: February 20, 2015, 08:03:17 AM »
Great things to think about. Thanks guys!

MissPeach

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Re: Manufactured housing / mobile homes
« Reply #4 on: February 25, 2015, 02:04:01 PM »
I'm thinking of something similar if I stay in my current HCOL area. My understanding of my area (I'm still learning this stuff) is that if you put the home on a trailer (such as a tiny house) you get around the zoning rules and it's treated as a trailer. Then you just have to pay DMV fees. Might be something to look into if you are OK with a small home.

Blindsquirrel

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Re: Manufactured housing / mobile homes
« Reply #5 on: February 25, 2015, 07:04:17 PM »
  Check the zoning but the bottom has dropped out of mobile homes in the USA, Fannie Mae/Freddie Mac will no longer buy mortgages on mobile homes (after they got hosed royally by the Countrywide fiasco during the US financial crises)  so existing MH are worth the land they are on and that is it. Also realize that MH depreciate like a SOB and are very hard to improve as the interiors are often cardboard. You can buy used MH for the cost of moving them in many areas.  Just a word of caution.

MikeBear

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Re: Manufactured housing / mobile homes
« Reply #6 on: February 25, 2015, 07:49:20 PM »
Two biggies:

1: Once they get to a certain age, it can also be impossible to get homeowners insurance on them. If you still buy, don't keep anything in it that you'd care about if the place burns. Which if it does, means it'll most likely be burned to the foundation within 10-15 minutes.

2: Just try to get a bank to finance them. It's nearly impossible. That's why the manufactured house companies finance them in-house when they are new.



shadowmoss

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Re: Manufactured housing / mobile homes
« Reply #7 on: February 26, 2015, 04:05:58 AM »
Foremost insurance will insure older mobile homes.  They are the only ones who will, from what I understand.  My 1969 mobile home is insured with them.  That said, I live where I don't have to worry much about cold (Phoenix).  Lots of mobile homes here now that wouldn't pass (probably) zoning if they tried to move in new.