I am approaching the topic of the advantages and disadvantages of owning a mobile home from my view as a real estate investor, who also invests in mobile homes. A mobile home is not always real estate per se. It depends on state laws, but generally speaking, if the home is on a permanent foundation, on your own land, it is mortgaged, and deeded as real estate, and recorded at the local deed department at the county in which you live. If you have a mobile home on a rented lot in a park, it is titled, much like a car. It is considered personal property, not real property. There may also be some discrepancies as to whether the wheels, and axle remain. Taxes follow the same path. If it is on a permanent foundation, on your own land it will be treated as real estate taxes. If it is on a rented lot, non permanent foundation, the taxes will be personal property taxes, and will go down every year most likely, as it depreciates.
A mobile home as personal property depreciates. Many owners only are able to sell for what is owed, and do not get any extra money from it. That can vary according to where you are located, and the upkeep or upgrades done to the home. Also, the amount you profit can be determined by the type of financing you offer a new owner. Such as owner finance, lease option, etc. If you can wait for your money this is a way to earn more money. You know...finance charges.
Finance charges are higher on a mobile home. 10 - 15% would not be unusual even in a low interest market. The reasons are, depreciation instead of appreciation, and the difficulty in selling in a traditional fashion.
The advantages are: you have a personal space, you own it, depending on what you buy, you will have a well decorated home. Most of the time your payments on the home, and the lot rent combined, are less then that of the area rental market. Also, the cost of even a new double wide mobile is less than the average fixer upper in my area. You could spend $140,000 or more on a fixer upper, and be fixing for a long time. If you choose a fixer upper for a mobile home (just cosmetics are best), you have a smaller project, with a shorter outlay of time. .
The disadvantages are: Lot rent can continue to go up. You have to be sure of your local laws to put a mobile on a privately owned lot. Some places they are not allowed at all. Other places they are allowed, but with year, roof pitch, or size of lot restrictions. The year of the mobile home also will limit if it can go into a park. Also, a park can say that it has to be moved because of year, or condition. Another problem that can be faced down the road is, if you have a financial problem, and decide that it is best to pay on the home, but skip lot rent, the park can force you to move your home, or force you to abandon it. Other problems are park rules. If you do not abide by park rules you can be told to leave. Remember, it will cost at least $5,000 to move a home. If you decide to fix up a mobile home be sure you have at your access professionals who have worked on mobile homes before, and a mobile home supply house. Even if you are a do it yourselfer, some things are different on a mobile home than on stick built, and some parts are only unique to mobile homes and may not be carried by the big box stores. Another disadvantage is noise transmission is higher. Whether it be a neighbor, or the pounding storm. Insulation is usually less. The location, or type of park or, on private land, the area will of course make a day or night difference in your living experience. Be sure to visit a prospective park at different times of the day and night, and on weekends to determine if the atmosphere of the neighborhood is suitable. Only you can decide if it is for you. If I had my own park, I would like some type of club house, that has a storm shelter. I have not heard of any in my area. Tornadoes, hurricanes, and floods all make mobile homes more vulnerable.
