If you are new to the concept of mobile homes, you might be wondering if this is the path to take to buy property. There are many different property types, but how exactly should you start with mobile home investing?
This type of real estate has become very popular among people looking for ways to make money, and it can provide an excellent return on investment.
If you are new in this property business, the following article will provide vital information to help you get started.
Table of contents
Types of Mobile Homes
First of all, you should know what defines a mobile home. This term usually refers to any housing unit that features wheels and is equipped with a foundation that includes all the utilities needed.
This term can cover many different homes, so it is essential to understand them.
Mobile homes are typical houses with mobility. They are usually smaller than usual houses, but they feature the same amenities.
This type of housing often features two bedrooms and one bathroom, making them suitable for small families.
A Recreational Vehicle (RV) is considered a mobile home as well. It can be permanent or temporary and usually feature two bedrooms and one bathroom.
However, the difference between a recreational vehicle and a mobile home is that the latter has to be attached to utility hookups such as sewage, water, electric power, and cable television.
Finally, there are also manufactured homes that can be stacked on top of each other. For example, if you wanted to purchase a home, but the land is limited, you could stack five manufactured homes on top of each other and obtain more living space.
Things to Know Before Investing in Mobile Homes
According to Statista, in 2018, there were 4.06 million mobile homes in the United States.
Once you know the different types of mobile homes, it is essential to understand how mobile home investing works.
Here are some things that you should be aware of before starting:
Checklist of Essential Features
To find a suitable investment property, you must check the following features:
The property has to be Energy Star compliant. Energy Star homes provide a better return on investment, and they also feature less expensive utility bills due to their improved insulation.
You should check the smoke detectors and carbon monoxide detectors in the home. These features can help you save lives and reduce your insurance premiums as well.
Next, you should also check the appliances. When you buy a mobile home, it must come with installed devices. You can save money on initial costs by purchasing a home with appliances included, but you should always check them before buying to ensure they are in excellent condition.
Check the electrical systems of the property by asking for an inspection. All the wiring and lighting fixtures must work well to avoid fires and other electrical problems throughout the years.
Also, check whether or not the property has a warranty for roofing, heating, and cooling systems and appliances. A property with a warranty provides you with some peace of mind about the quality of the property.
Make sure you check the physical condition of the mobile home by asking for an inspection before making any offers. It is crucial to ask experts to come in and verify that there are no significant problems with the foundation, framing, or wiring.
Acceptable Locations
As with any other type of real estate, it is also essential to consider the location. Some locations are not appropriate for mobile homes due to their poor infrastructure.
So, you should first check whether or not your chosen location has enough utilities and public services before investing in a property.
Skills Needed
Before you consider purchasing a mobile home for sale, it is crucial to understand that you need specialized skills to make the most out of this investment. For example, you may not be able to live on-site for extended periods due to zoning or building restrictions.
It means that there are specific locations where you would only be allowed to buy a house as an investment, but you would not be able to live in it.
Maintenance Needs
Another feature that may affect you is that mobile homes generally need more maintenance than traditional ones.
They do not have as much insulation for heat and cold because they are designed with portability in mind. The homes also use more energy due to their size, making them less energy efficient.
However, once you find a suitable investment property, it will provide better returns over time if the utilities are low.
