Questions: Maunfactured / Mobile Homes, Pros and Cons

My home is not, for us an investment, it is our home. Our land has been in the family since before Texas was a state, so it will stay in the family. But to each their own.

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When bad men combine, the good must associate; else they will fall one by one, an unpitied sacrifice in a contemptible struggle.

Our cabin is our home too. It's also a retirement investment, at some point neither of us is going to be able to properly keep up the property.

I co-own the family dairy (5 generations) farm with my brother and with 350+ acres there will be enough for the four daughters in our family, if they chose to keep their portion.

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People say I can't multi-task. Well, I can tick you off and amuse myself at the same time.

Sounds a bit like our set-up. Our family has close to 5000 acres, cattle and hunting leases we operate. This is our final home, plenty of family here and we take care of each other.

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When bad men combine, the good must associate; else they will fall one by one, an unpitied sacrifice in a contemptible struggle.

In your case, I'm assuming you don't outright own the property as you indicated it's family owned, something low cost was more feasible. For most people it's not, but you're right, to each his own.

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People say I can't multi-task. Well, I can tick you off and amuse myself at the same time.

No we only own around 1500 acres, outside of our portion of the family operations of which we are a percentage owner.

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When bad men combine, the good must associate; else they will fall one by one, an unpitied sacrifice in a contemptible struggle.

As an assessor I’ve seen a lot of mobile homes. A double wide is a mobile home. A ‘trailer’ will have a license (must have because they are mobile). A modular house does not have a license. In theory, a mobile home can always be moved because they will always retain the trailer underneath.

Trailers, mobile homes, manufactured housing vary a lot. You can pay as much for a double wide MH as you would for a house. The more you pay, the better you’ll get. A house will depreciate 1% of it’s value for the first 30 years, unless it is really really upscale. A MH will depreciate 3% each year.

If the MH is on a foundation, basement or crawl space, this will extend the life of the MH. The best way to get a rapid depreciation on a MH is to have kids living in it. A retired couple can end their years in a MH. A family can’t.

I personally think a wiser investment than a used MH is to get a cheap place to rent while you save more money and can put a down payment on a house. A MH will go down in value, a house will not (except for unusual circumstances such as the neighborhood deteriorating or the banks screwing the whole world).

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Nothing is as strong as gentleness, nothing so gentle as real strength - St. Francis de Sales

Sorry, but you have stated two of your opinions as facts, and the truth is a bit more complicated.

First, the mobile home industry built such crap over the years that the terms single and double wide mobile home have become synonyms for inferior junk. Once way to address this was for the industry to start calling their products manufactured homes, and modular homes. Does make them any better, but creating confusion makes it easier to sell their junk.

A real modular is know in the industry as a "state code modular" meaning that it is nothing more than a stick built house, built in sections in a factory, and erected on site. A HUD code modular is a single or double wide mobile home, built to much, much, lower standards, and leaves the factory attached to a permanent steel frame with a detachable hitch and axles. Manufacturer housing is a catch all term that encompasses all of these.

Appreciation, or lack of it, is strictly a market by market event. There is no way to make the statement that a mobile, manufacturer, or modular product will depreciate, without knowing the specifics of their location. Some appreciate substantially, and at the same rate as any other single family residence, other markets are biased against them, and they lose value the minute you move in.

Finally, the claim that there are quality issues in modular homes isn't accurate either. They are no different than stick homes, there are great builders of both, and total clowns that build garbage on site, or in a factory.

I've built, repaired, added to and renovated homes for thirty years now. I lived in a modular for a dozen of those years. Simply put, it was a far better product than 95% of the local builders here are capable of producing. It appreciated nicely during our ownership, and it was a smart investment. But, a lot of that was knowing the difference between what you expect and inspect.

As to the OPs question, the area you are shopping in is double wide country. Every little town there seems to have at least one dealer, and most have the look and feel of a slimy used car lot. If you go this route you really need to be on you toes. Find what you want, and who the major manufacturers are that build it. Shop aggressively and really research who you are doing business with at all levels of the transaction. I would absolutely plan on getting your own bank financing (if needed) and your own real estate lawyer.

I just got back from spending the last few months in north Florida, and really found the local R.E market there to be pretty interesting. I can assure you that, IF I was in the market, buying a NEW double wide would be well down my list of housing options. first, the area is still in recovery mode from the recession, and there is a ton of single family stick built inventory that is selling for very low prices in many rural areas. Second, the local builders are still apparently hungry, as they are quoting sq. ft. prices that are well below my costs here in the northeast. That said, I gotta' give props. to Harry for pointing out the best plan of all, buying a used mobile. Clearly, depreciation and supply and demand can be pretty favorable to the buyer in this case, as there are some stunning buys to be made.

Kind of shocking to see that you are from NYS, and stating such inaccurate info? I've had this conversation with others here from OK, TX and other locations where your statement is in fact true, but as for your location, no.

As you may be aware, the modular home industry for the Mid-Atlantic, Northeast, and New England states in located pretty much dead center of PA. From there state code homes are built by the tens of thousands and are assembled from Maine to the Carolinas and well into the Midwest. Roughly 40% of the country's population is served by these manufacturers, who build everything from luxury housing full of hardwoods, granite and high end fixtures, to budget grade homes with vinyl exteriors and Formica and carpet interiors.

Now as any local appraiser will tell you, a state code modular is a house, and treated as such. I built mine in 2000, and spent a total of $85K. It sold for asking price last summer, at $180K. The buyer was perfectly well aware of the fact that it was built off-site, and pleased with that fact, as they knew that it was better built than most of the other homes they looks at. The appraiser was quite clear that it was built off-site and made it quite clear that that information was of no interest to any lender. Simply put, I built a 1500 ranch, with a steep roof, Cherry trim throughout, Anderson windows and doors, and a giant kitchen for 30% less that a stick built place, and it's value more than doubled in a dozen years. I spend a lot of time in the northern and southern tiers, and the finger lakes. We are currently shopping for a property in that area, and I find no evidence to support any diminished values on any true state code modular we have seen.

In my experience, a modular home will not sell for as much as a stick built house. We looked at them when farm hunting and were advised by real estate professionals, our investment people, and others not to buy any type of home that wasn't built on site. Based on multiple opinions of professionals, we didn't. Your opinion, and mileage, may vary.

You aren't indicating in your prior post that trailers/double wides/whatever don't depreciate, are you?

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People say I can't multi-task. Well, I can tick you off and amuse myself at the same time.

We lived in a manufactured double wide for three years and it was the most comfortable dwelling I've lived in. Well designed with none of those weird quirks found in regular houses (ex:bathroom right next to the dining area). Everything on one floor, something I appreciate as I get older. We had a woodstove and it was always warm and comfortable. Plenty of room for the family and 3 bathrooms. I'd live in one again in a heartbeat, but my dh won't because of the depreciation thing. We had a 1996 model, I think. DH thought it was well constructed.

I live in a doublewide manufactured home (Palm Harbour). It is 12 years old. The construction and insulation is tighter than most stick builts I've lived in. This was a repo in 2008 and I paid $26,000. for a 1600 sq. ft. home -- $32,000. when moving and getting it hooked up and skirting was done. There is no way I could have had a house built for anywhere near that amount. Actually the estimate on a stick built house of 1200 sq. ft. was $60,000.+. I'm happy with my house and have had no problems what so ever. The only thing I don't like about it is the 28" interior doors and thin facing around the doors and windows -- they cry "mobile home".

I've lived in 5 singlewides over the span of 40 years, and I can say the recent ones have been very well built (post 1975). I really think it's people's biases against "trailers" that bring the value down. The actual house is very well built and durable.

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I may disagree with what you have to say, but I shall defend, to the death, your right to say it. Attributed to Voltaire

Shame that you didn't take a more open minded look at what's out there. In a similar vein, I can find lots of "real estate pros, investment people, etc" that will tell most folks to stay far away from ever buying a log home. Now there are lots of reasons to avoid them, and lots of knowledgeable folks that really made a great choice in buying, or building, their own log homes. So once again, experience, opinions and reality don't always agree. I can assure you that there are dozens of homes in your area that you, and most real estate professionals wouldn't ever guess were built in a factory. The outfit that built mine was building a massive Victorian that was being barged to an island off the coast of Maine, last time I was in the plant. Nine foot ceilings, giant trim, hardwood doors, dozens of roof lines, etc.... Didn't look like it was going to be depreciating anytime soon, and it was going to cost the owners hundreds of thousands less than stick building the same thing.

As for mobiles appreciating, yep, it happens. Not to the vast majority of them, but in very location specific cases they can be an actual investment. Having repaired a few, It wouldn't be my cup of tea, but to each his own.

Like I said, we listened to professionals rather than the someone on the internet, and I would again.

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People say I can't multi-task. Well, I can tick you off and amuse myself at the same time.

Modular homes can and are usually as high quality as stick built homes are. They're built out of the same exact materials, but the framing is done in a building. What is the difference?

And there are so many of those cheapy stick built houses getting slapped together every day in those new neighborhoods cropping up, so really it's dependent on the individual house.

I dunno. We were warned off them by professionals so we didn't look any further.

Why would anyone buy a crappy stick built house? Any inspection will show it's flaws.

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People say I can't multi-task. Well, I can tick you off and amuse myself at the same time.

Was that BTW by professionals that sold and or built stick homes? if so, sure they are not going to steer you away from buying a stick built one. LOL

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Nope, both real estate agents sold everything from million dollar properties to hunting camps to trailers, but the investment guy was the type that would break out in a rash if he had to stand next to a manufactured home.

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People say I can't multi-task. Well, I can tick you off and amuse myself at the same time.

The #1 most common problem for Mobile Homes is bad floors. Many were made with particle board and it doesn't take long for water to damage it. The most common areas for water damage are doors, bathrooms and windows, anywhere water could have gotten on the floors.

Another common problem is improper site setup. Many times they blocked up trailers on the ground and slapped cheap skirting around them. After several years they will settle and become UN-level. It can make it hard to get under them to work on stuff.

The cabinets and other furnishing of most Mobile Homes are of the cheapest items that could be found. Any hard use and these will start to wear out and break.

Most of the new houses being built are made with junk materials as well. You will not see these houses surviving 100 years like the old houses of today which were built with real hardwood.

I have lived in good and bad houses and trailers. If you take care of a trailer it can last, but you have to take care of it. I have owned five trailers and four houses. If a house is properly built I would pick it over a trailer any day, but in the right circumstances a trailer is a good choice, and a hell of a good step up from a tent.

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www.jlmissouri.com Lewis Family Farm

First, like many here, I am a professional, as in......... builder, licensed electrician and real estate investor. As such, I can confidently say that any claim that a state code modular built and erected in OUR region (The mid-atlantic and new England) is somehow inferior, or typically going to depreciate by virtue of it's origin, is nothing but an opinion, and not reflected in the real world, nor supported by any professional worth listening to, as in appraisers, loan underwriters, code officials, etc..... Believe me, the best way to get skinned in this game is listening to a "real estate professional" as you call them. Literally, 4 out of 5 of those clowns are best avoided.

Second, having built countless millions of dollars worth of stick houses, I find your last comment hilarious. Most stick houses are crap. That's the market, that's what happens when you take tens of thousands of parts and assemble them with semi-skilled labor in field conditions. It is what it is. Buyers love crap, as long as it looks good and has all the junk on their "wish list" they are happy.

I can't count how many times I have seen large builders build absolute trash, do so with crews of illegals, cut every corner imaginable, then take the time and money to put one sweet looking silk dress on the pig. Next it's slick marketing, and easy financing, and Joe middle class cubical dweller is suddenly the proud owner of a really pretty piece of crap. The flooring is shot in 6 or 7 years, the siding, roofing, cabinets etc... barely make 20, but hey it looked good at closing.

As for protecting yourself from all of this by trusting a home inspector, good luck. Throughout my career I have repeatedly seen innocent home buyers end up getting horribly hurt by home inspectors who clearly had one goal in mind. that being serving their real master, the R.E agent that got them the job. There are good inspectors out there. They are far from the majority, and they do not make a living by groveling for work from agents looking to get a clean bill of health on the trash they are attempting to dump.
I once did some emergency repair work at a home one of the neighborhood kids bought as a starter. The chimney was pulling away from the place and in danger of falling in a good wind. the baby nursery room was accessed by a 20" wide slot cut in an adjoining bedroom wall, and the bathroom light fixture was above a drop ceiling diffuser, it was a hole smashed in the plaster ceiling, lined in tin foil, with a bare light bulb hanging. This place should of been condemned. The girl gave me a glowing home inspection that she paid for. Another family bought the home next to us. The roofing was 17 years old, and the cheapest shingles on the market at the time. They were curled up and starting to leak. the inspection report showed the roof to be in good condition with an estimated 15 years of life left. To any lawyer in the industry, these stories don't even raise an eyebrow.

Yet, in all my amateur foolishness, my property is still worth over twice what I paid for it... Thankfully, my spouse and I aren't kids or first time home buyers, and know how to properly review a multitude of professionals, huh?

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People say I can't multi-task. Well, I can tick you off and amuse myself at the same time.