Manufactured homes can be a great investment as either a full-time residence, a vacation home, or a rental property. While being far more affordable than a brick-and-mortar house, a large, brand-new, fully equipped, state-of-the-art manufactured home of today is still a significant investment. Some people question whether or not they should save a bit more money and purchase a pre-owned manufactured home. Is it a good idea?
Keeping in mind that purchasing a used one probably means you will also have to remodel a used manufactured home, the answer can still be a resounding, “Yes! It’s a great idea.”
You may be able to do some of the updates on your older manufactured home yourself, so you will, of course, want to be sure to find one with a sound structure. That and a few other factors aside, imagine how much you’ll enjoy living debt-free – a far more distinct possibility than if you invest in a standard brick-and-mortar house. Remodel and redecorate as your budget allows, as long as the structure you’re living in is intact and in very good repair.
But before you buy, consider the following…
- Your budget as a new homeowner
- Your ROI (return on investment)
- The manufactured home’s condition
The manufactured home’s condition
The initial investment in a manufactured home, as stated already, is far lower than investing in a brick-and-mortar house. So, you’re saving money already. If you purchase a pre-owned home, you’ll save even more. As far as remodeling, refurbishing, repairing, redecorating, upgrading, etc., do only what your budget will allow. As long as you have a solid structure around you with safe, functioning plumbing, electrical, gas hook-ups, etc., you can take your time.
Not every project you execute on your used manufactured home will increase its value. When considering your ROI, you must weigh two things against each other: What you spent and will spend on the used manufactured home, and will it be worth it in the end?
Manufactured home improvements that offer a good ROI:Manufactured home improvements that offer a good ROI:
- New flooring
- New skirting
- Adding a Deck
- Bathroom remodels
- Kitchen remodels
- New siding
- New roofing
- New windows
The Condition of Your Used Manufactured Home
Remember when purchasing a used manufactured home that the structure matters greatly. There should be no damage whatsoever. You want a home in as good condition as possible.
Water damage is an absolute dealbreaker. Check for water stains around doors and windows, look for “soft” flooring, and ceiling stains. To make sure no soft spots exist, lift the floor coverings in the kitchens and bathrooms (and laundry rooms if applicable).
To make sure the belly wrap has been maintained properly (no signs of leaks, no rips, etc.) crawl under the home.
There are lots of things to consider when looking at the condition of the home, such as updates, repairs, etc. An inspection should be done so you know where you stand with the home’s integrity and necessary repairs.
Remember when remodeling your used manufactured home not to spend more money on it than it’s actually worth. Carefully consider your initial investment in the home itself, then remodel, refurbish, redecorate, etc., as you feel appropriate and at your own pace.