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What Are the Pros and Cons of Investing in a Mobile Home?

Mobile homes generally do not appreciate in value after purchase.
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  • Written By: B. Miller
  • Edited By: Andrew Jones
  • Last Modified Date: 02 September 2014
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There are a number of pros and cons to investing in a mobile home. Before making any investment, it is important to consider the expected return, as well as the amount of the initial investment, because this will help determine the amount that can be spent, and will illustrate any inherent pros and cons. Investing in a mobile home can be a good way to own a place to live without spending a great deal of money, but the return on investment for a property such as this is often fairly low.

Some of the important cons to keep in mind when investing in a mobile home are that it is necessary to find land on which to park the mobile home. It is possible to put the mobile home in a mobile home park, but this will typically require additional monthly fees to lease the area of land and hook up the mobile home to local utilities. In addition, it is important to consider the neighborhood and do research ahead of time to be sure the mobile home is going in a safe and desirable location. If one does not wish to park the mobile home in a mobile home park, it will be necessary to purchase land on which to park the mobile home.

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Purchasing land when investing in a mobile home is something that people often do when they will eventually be building a house but cannot afford to complete it right away, or when they simply need extra time to complete construction. This way, a family can live in the mobile home on the property while the main house is being built, and can then simply sell the mobile home when the construction is completed. Of course, some people simply purchase land and leave a mobile home on it forever by placing the mobile home on a more permanent foundation.

Another issue to consider when investing in a mobile home is that mobile home owners receive a title to the home, similar to the purchase of a vehicle, rather than a deed. This can make it easier to sell the home in the future, which can be considered a pro, but it is also unlikely that a mobile home is going to appreciate in value after purchase. If a mobile home is located on owned land, the owner will have a title for the mobile home and a deed for the land, and is not required to sell them together.

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Laotionne
Post 3

From reading this article, I get the idea that many of the newer mobile homes are more like houses, but if you buy a used mobile home, there are some things you should look out for.

The floors and walls are made of cheap plywood and they rot easily if they get wet. Also, all that metal that is on the outside makes the house really hot in the summer when the sun is shining on it, so your cooling bills are going to be high.

Animandel
Post 2

Buying double wide mobile homes used to be a cheap way for families to own their own homes without going into too much debt. However, I recently went to a place that had double wide mobile homes for sale and looked around. The homes were nice, but I couldn't believe the prices. Some of them cost more than I paid for my house and it is a new house in a sub division.

Drentel
Post 1

In some places, owning mobile home parks is a good way to make a large amount of money. There is a guy in my town who bought a couple of old used mobile homes and set them up on his land. He rented the homes cheap, but still the price for rent was more than the homes were worth. He made his money back in no time.

Then he slowly began to add more and more single-wide mobile homes until he couldn't pack another one on the land. He chose single-wide homes because he could buy them cheaper, get more of them on the space he had and they are easier to move in and out.

He started with the mobile home rentals about ten years ago and he has made a fortune, so they have been a really good investment for him.

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