A home isn’t just a place to live—it’s also a long-term investment. Those looking to generate passive income via property management must consider the cost of remodeling, long-term repairs, and their eventual listing price compared to the price they initially bought the house at. Mobile homes, while generally more inexpensive than permanent housing, still serve as a long-term investment. The question is: is a mobile home a good investment?
Pros of Investing in Mobile Homes
There are many benefits to investing in mobile houses instead of traditional houses:
Comparatively Low Cost
Whether you’re looking at initial cost or monthly rent, mobile homes tend to be more inexpensive than their permanent counterparts. Property taxes and insurance policies also tend to be lower than owning multiple single-family homes. This makes them a good investment for those who don’t have a large starting budget (or a good investment for those looking for low-cost housing!)
Because mobile homes are usually smaller than permanent housing, their wiring and plumbing systems tend to be less complicated. This keeps repair costs down. If you’re a landlord renting an entire park, you might not be responsible for individual home repairs at all—those costs would fall on your tenants.
While it varies from state to state, mobile homes are in reasonably high demand throughout the US. Demand keeps prices from dropping too low, meaning you’ll have a market for your mobile homes.
If you’re investing in an entire mobile home park, there are plenty of ways to customize it so your listing stands out. You can include public services such as pools or tennis, or cater to specific demographics, such as retired seniors. This allows you to market a larger amount of mobile homes under the same “group” appeal.
Cons of Investing in Mobile Homes
While there are many benefits to investing in mobile homes, there are also a few downsides:
Because they’re manufactured and placed on plots of land instead of built there, mobile homes tend to be less durable than traditional houses. This makes them less resistant to natural disasters such as flooding and tornados. While there are some ways to prepare mobile homes for storms, the risk of additional repair costs will always be present.
Due to their manufactured design, mobile homes are at the mercy of the restrictions of the land they’re placed on. Density restrictions can limit the number of units allowed on a single plot of land, which limits your investment potential per plot.
The social stigma surrounding mobile homes means that they tend to lose value over time instead of gaining it like traditional housing. This applies to both individual mobile homes and the land for mobile home parks. There are ways to combat this, however, such as offering community services and keeping the homes in good repair.
Keep Your Mobile Home in Top Shape with Star Mobile Home Supplies
Just like a traditional house, keeping a mobile home in good repair is a great way to maintain its value. If you’re looking for quality mobile home parts for repairs or remodels, try Star Mobile Home Supplies. We offer everything from exterior skirting to bathroom sinks, with enough variety to blend seamlessly with any décor. Start shopping today and get the most value from your mobile home.