Factors to Consider When Purchasing a Manufactured Home
If you feel that the pros outweigh the cons and wish to move forward with buying a manufactured home, there are still a few things to consider:
Buying New or Used Manufactured Homes
Buying new – Purchasing new manufactured homes allows you to choose the exact layout and size you want. In addition, you can choose all the features you need such as fireplaces, walk-in closets, and custom cabinets. You can also customize the rental property and its exterior with features such as awnings, decks, steps, and siding colors and materials.
Buying used – The main advantage of purchasing used manufactured homes is affordability. However, be sure to inspect the building to ensure it is in good condition. Check the doors and windows for cracks, gaps, and insulation. Test the strength of the flooring and check the insulation for moisture. See if the anchoring system is still intact and sturdy.
The Costs of Purchasing a Manufactured Home
With the cost of new homes ranging from $15,000 to over $100,000, purchasing a manufactured home is a major investment. When thinking of how to buy a manufactured home, other costs you need to keep in mind are property tax, insurance, the cost of transporting the home, land costs, and other associated bills such as sewer, water, utilities, and routine maintenance.
The good news is that property financing is readily available for manufactured homes. Just like a traditional home purchase, the investor’s debt to income ratio, tax records, down payment, employment records, and creditworthiness must satisfy lender requirements. Buyers of such real estate properties can access manufactured home loans such as FHA, VA, and conventional mortgages.
Where to Locate the Home?
After buying a new manufactured home, a real estate investor will need to consider where to place it. If you don’t already own a piece of land, you will have to buy or lease land. A manufactured home located on a strategic site will appreciate in value and generate a good return on investment. You can use tools such as Mashvisor to identify the best locations to place your rental property. However, be sure to find out if the local zoning laws allow manufactured homes on the site.
Sams housing can help you find right home at right location for you. Contact us.