Mobile Homes
Mobile Homes as Investments
By Buyincomeproperty.com
Oct 17, 2005, 17:02

Over the past several years, the mobile home industry has changed dramatically. No longer are mobile homes considered second-rate accommodations. Many mobile homes provide all the floor space and amenities of stick built homes, but at less cost.

Add that to the fact that lenders are more willing than ever to offer mobile home loans and that more people are finding it socially acceptable to live in a mobile home, and you’ve got all the ingredients for a successful investment venture.

The changes can greatly be attributed to the fact that mobile homes are built better than ever. Where these were once considered “tin cans” and suitable only for temporary housing, they are now more like traditional stick-built houses than ever. Plywood has replaced particle board for floors – the latter notorious for rotting and falling through at the first hint of dampness. Walls are no longer poor quality paneling, but sheetrocked, wall papered and finished with quality molding and trim.

With all these changes, insurance companies have altered the way they offer insurance on mobile homes. Instead of rating them as “fire traps” with incredibly high premiums, more companies are offering good rates on homeowners insurance for mobile home owners. A few years ago, a mobile home that was a decade or more old was almost uninsurable. But with better construction, the mobile homes last longer and are insured for their lifetimes.

With all these differences, it’s no wonder that the lending industry has jumped on board, offering mobile home loans at excellent rates and backing investors who are looking to offer mobile homes for rent.

Mobile home mortgages are also being offered with less stringent repayment times. While a landlord investing in a rental property probably won’t be interested in taking out a 30 year (or longer) mobile home mortgage, individuals now have that option.

With the incredible amenities being offered in mobile homes today, landlords are also able to draw from a larger pool of potential renters, and those renters are able and willing to pay higher rents. Double fireplaces, large laundry rooms, Jacuzzi tubs, walk-in closets and four or five bedrooms are now common – a far cry from the mobile homes of only two decades ago.

There are some things to keep in mind before you set out to buy a dozen or so mobile homes. Many cities and subdivisions have regulations that prohibit mobile homes or other houses that are not traditional stick-built houses constructed on site. Even if mobile homes are allowed, there may be requirements to pour a concrete foundation to set the mobile home on, and to include brick or rock (or some other permanent material) as underpinning. Some ordinances also require that only mobile homes with shingled and pitched roofs are allowed, or that metal siding is prohibited.

You may also find that some neighborhoods are reluctant to allow mobile homes. If the neighbors scorn the addition of mobile homes, and if it doesn’t blend in with other homes in the area, you may have trouble renting the home and keeping it occupied.