Manufactured Home Investment???

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I have the opportunity to purchase a HUD Manfactured Home in the Boise area. It was originally purchased 3 years ago for 92K. It only needs minor cosmetics - probably less than 2K to get looking great.

I can get it for 48K, the realtor I am talking to says I could probably get a max of 82K with terms out of it. All of this leads me to ask- do manufactured homes always depreciate like this? Would this be a wise investment for me? It seems like a no brainer, but nobody else has bought it yet, and I have no clue about stats on Manufactured homes.

Wondering in Boise... Any advice??

confused

Comments(5)

  • myfrogger25th December, 2003

    mobile homes/manufactured homes with hud tags always depreciate. They are not real estate but nonetheless can be money makers if done right. People usually stay away from the higher end areas of mobile homes (I had no idea that you could buy one that cost that much!) but you know your market better than I do.

    You also have to consider...if someone else is trying to sell it and it hasn't sold (and if it only needs minor cosmetics like you said) then why hasn't someone else bought it?

    Know the market. I'd personally stay away from MH that do not include the real estate they are placed on but that is me, not you.

    Good luck. If you post a more specific question on here you have a better likelyhood of a good quality answer.

  • fordecan25th December, 2003

    Thanks for your response myfrogger.

    Yes, everyone I talk to indicates that the person that bought it originally paid wayyyyyy too much- no doubt about that.

    Also, you are right- I have no idea why an owner-occupied buyer has not snapped it up yet and that's why I am very pensive about pulling the deal off.

    In regard to the land- it actually does come with the land and the small "park" or development that it is in is actually pretty prime real estate. It is nestled in between several higher end developments and has a field behind it- so the area seems very desireable.

    The dirt itself is probably worth at least 30K or so.

    Any other insight? I have to put out a disclaimer- I am new to this area myself and have not familiarized myself totally with the market- I am studying that now.

  • tclifford109th January, 2004

    Sounds like a no-brainer to me. I'd buy it and set it up as a LPA or keep it as a rental. I live in OH and have property in the Boise area. If you don't want it, let me know. In any event, Good luck, Boise is a good growing area.

  • cpifer9th January, 2004

    Is Boise in America?

    CP

  • fordecan9th January, 2004

    Thanks tclifford10- I just researched it and it has been sold... Guess I missed this one... I am new and need to grow a pair and do my first deal...

    As for cpifer's comment... You're right. Boise is not in America and it's a great thing! Stay in Dallas, we like you there...

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