Single Wides For Long Term?
With the REO problem it seems that there is a huge oversupply of all types manufactured homes. With that said, does anyone see long term potential in buying single wides to rent and hold? Why? No one wants them, they're dirt cheap; however they can be rented out. I'm seeing some which are less than site value. I have never bought any kind of manufactured home before and a concern is the fix up and repairs.. the walls and floors are a far inferior to site built regarding materials and quality. Am I wrong to even consider these? I've been told dealing with "trailers" is equivalent to buying property on Mars. Is this true even if you can buy them so cheap?[ Edited by landpimp2000 on Date 12/31/2003 ]
I know a couple of people that own land and have a lot of cheap (as in 2k) singlewides on them. They rent them to hispanics.
They rent a 2 bedroom for maybe $350, when an apartment would be twice as much. Of course they are out of town and have to drive.
Still, this is definitely a specialty market, not for everybody.
Good Luck !
[addsig]
That's a broad question, and there are several things to consider. What is your market like for singlewide rentals? Does each have it's own lot, or mainly on MH parks? What's your long term goal with them?
I've known people who've made a fortune off of singlewides. It can be done. However, in almost all situations, singlewide rentals generally attract a lower caliber of renter. Around here, most SWs rent weekly, so the tenant is free to leave in a week's notice. Will you be able to deal with this type of renter?
Fixup should be a major consideration. Singlewides will depreciate in value. At some point, they won't be worth the time to fixup. When renters leave, you can almost be assured that there will be more fixup costs.
Roger