Manufactured Homes And Appreciation
I see a fisbo in our local paper at a great price, 129k it's on a 1/2 acre its a 1500 square foot 2004 fleetwood. The property should rent for about $950 a month. My question is how are the lenders with manufactured homes and how is the appreciation. I've been doing rentals for about 3 years here at an avg. appreciation of about 17-20% a year but not sure on this one need some help.
I would also like to know about long term what I should look for?
Although, in my personal experience, around WA State, institutional lenders come and go, constantly, (and sometimes there's just none to be found!), I do like MH land packages and this sounds like an OK deal
If the title to the MH has been merged into the land, then it's RE, but not all lenders like MHs, whether on their own land or not, so just be aware of that fact...and the fact that if you have to have a loan on it, you may have to go into private sector and pay some private lender's interest rate.
I know of a number of MH loan/purchase deals where the lenders were private individuals who knew they could make a great return that way, and be well secured by 1st D/T on the packages while the loans were outstanding.
My opinion is that any appreciation will be driven by the land that it sits on. Mobile homes in general depreciate.