Posted on February 23, 2017
Mobile homes are sometimes called as manufactured homes too. When one invests in such a house then it can be a risky endeavor. Sometimes you may select the house for a very low value which will be a viable option. However, other than this case the risks associated with this purchase may be more than the likely profit that one gets from the deal.
Now let’s see some key points related to mobile homes:
Widely known for having lower value compared to traditional properties. Some may consider these properties as less profitable too.
Inclined to have depreciation in value as time progresses. And when it is located in a lease land then the statement is applicable to great extent. So these investors should consider the depreciating value while contemplating on income.
When it comes to the question of financing, getting the same on such properties will pose a challenge. There are certain age qualifications and the condition that a real house is available, for lending institutions to contemplate over. A traditional mortgage by and large has a lower interest rate compared to mobile homes for sale in Phoenix. The down payment is also low in case of traditional mortgage.
The plan style that we have got used to in a mobile home investment may make additional modifications a tough task. These houses should adhere to HUD Manufactured Home Construction and Safety Standards. This implies that they are not subject to the local building standards that are applicable to traditional houses.
There are certain states that ask you to get a license for handling these properties. This is required as soon as you buy a specific quantity of mobile homes within the purview of a park. The span that is applicable is less than one year for any period.
When you are dealing with such properties you should interact with the sellers and buyers in a direct manner. In fact, in top of the real estate value attached to it, this business is mostly people-oriented. When you opt for seeking the help of a real estate agent and doesn’t involve in the process most of the times then this business may not be the appropriate one for you.
Several such ancient houses do not adhere to the lending requirements. Certain factors like the age, location etc.are considered when interacting with a lender who is contemplating on setting aside some sum for this loan.
When contemplating on purchasing and possessing mobile home parks one should consider the related infrastructure as far as the lots are concerned. The historical net profit of the park should also be given a thought. And not to miss the aging factor and the place where the house is located.Several such house investors may come to a conclusion that paying through cash is the better means of payment.
Mobile homes for sale in Phoenix come as a feasible alternative for affordable housing. Also you are not required to pay house taxes. Sometimes there are age restrictions available for such parks. In case of these parks the maintenance is very less. Also you can upgrade the park at your own convenience.
Just as any investment requires due diligence mobile home investment also require this quality. The key is that investing in and purchasing such propertiesis in need of comprehensive research and meticulous planning.
Tags: Mobile Home investment
, Mobile homes for sale in Phoenix
, real estate agent