[roybean]

I just looked at a mobile home that blew my hair back...sunken living room, an island kitchen, the master bedroom had a huge tub and his/her facilities....but I also hear that they are not good investments.
Why?

[Hedwig]

Most of them are considered personal property, not residences like a regular house. In some states they are titled as motor vehichles.

If they are on a permanent foundation and the wheels removed, and on land that YOU OWN, some states consider them homes.

Most of them depreciate in value, like vehicles, instead of increasing, like homes.

[jlynn]

FHA considers them homes if they are an a perm foundation on owned land. There are many misconceptions out there about MH's that are a carryover from when they matchboxes (see you were surprised Roy!).

They do tend to depreciate, all though out in the country I've seen MANY appreciate single wides are more likely to depreciate than doubles and triples.

Did you know that HUD sets the building standards, and MH standards are much stricter than stick built homes?

So, as an investment, not a good gamble - as a home you don't plan to leave, excellent bang for your buck.

[Darren]

jlynn is pretty much on track. FHA has guidelines for lending on MH's and many lenders do not give loans on them. But, there are lenders that do. The main issue with them, from a lenders standpoint, is that many are not permanently fixed. Some can be removed from a property within just a few hours. Can't do that with a stick home.

I too have seen some really nice ones and my wife and I even considered buying one, even though it was more for the 20 acres it sat on. Here in Texas, the property taxes are crazy (about 3%). If you have a mobile sitting on 20 acres, you can claim an agricultural exemption and pay just a really small fraction of that.

Some crazy stuff, huh?

[ilovemydogs]

Originally Posted by roybean

I just looked at a mobile home that blew my hair back...sunken living room, an island kitchen, the master bedroom had a huge tub and his/her facilities....but I also hear that they are not good investments.
Why?

This is interesting coming up now as last night I spoke to my cousin about her trailer/mobile home.
She bought one 6 years ago. It is huge, two car garage, porch large kitchen with granite counters, island,pantry laundry room, living room with gas firelplace formal dining room,two bedrooms two baths one with jacuzzi.
It is in a development in NH where all the homes are less than 10 years old and it is an adult community.
She bought the home for 159,000. I did not know she didnot OWN THE LAND. Every month she pays a fee for snow removal rubbish removal etc. When she first bought the place it was several hundred a month now it is double that, so she wants to sell.
it seem that her place is worth a lot less than when she bought it new, and if she gets 125,000 she is going to be lucky.
SO DO NOT BUY ANY PLACE IF YOU DO NOT OWN THE LAND UNDERNEATH!
ILMD

[hannah]

Roy, about 15 years ago we bought two acres and put in 4 used mobiles homes. We bought the mobile homes through foreclosure sales and renovated them nicely with custom cabinetry, new windows, new doors, and new carpeting, and concrete block underpinning. They are all four on foundations with nice decks, carports, and landscaping. We rent them out. Recouped investment in the whole deal within a few years and now it is all pure profit except for the tax on the land and the tax on the mobiles homes is miniscule as they are older models. Occassionally we have to shell out to repair something but not often and DH does the repairs unless he is out of town and it's an emergency like a pipe burst or something. They make nice investments for renting out to seniors as seniors love them because they are all one level and we take care of the grounds. They are all HUD approved.

[jlynn]

Originally Posted by ilovemydogs

it seem that her place is worth a lot less than when she bought it new, and if she gets 125,000 she is going to be lucky.
SO DO NOT BUY ANY PLACE IF YOU DO NOT OWN THE LAND UNDERNEATH!
ILMD

Not owning the land is one test that makes an MH personal property as opposed to real property - that's why it is depreciating. It will be hard if not impossible to get anyone to give a prospective buyer a 125K loan now. More and more lenders are moving out of the market. They will need to check their loan papers for the possibility of assumption, etc. But be careful, alot of assumption clauses leaves the original purchaser on the hook if the the assumer ends up defaulting.

To the poster that mentioned Texas' crazy property tax rates. You gotta remember, we have no state income tax.

[jlynn]

Originally Posted by Darren

If you have a mobile sitting on 20 acres, you can claim an agricultural exemption and pay just a really small fraction of that.

Some crazy stuff, huh?

If I recall - I think you have to have a cow on the property - otherwise you can lose the exemption. What really hurts is the rollback taxes if that happens.

[hannah]

Originally Posted by jlynn

If I recall - I think you have to have a cow on the property - otherwise you can lose the exemption. What really hurts is the rollback taxes if that happens.

A chicken works the same way as a cow and is cheaper to feed...

[jlynn]

Originally Posted by hannah

A chicken works the same way as a cow and is cheaper to feed...

I was being serious - I think its a cow or other large animal.
Had some friends that owned a deer lease a few years ago. Their accountant said they were going to lose their ag exemption unless they got some livestock.

Now I gotta go research it Mrs. Smarty Pants.

[hannah]

Originally Posted by jlynn

I was being serious - I think its a cow or other large animal.
Had some friends that owned a deer lease a few years ago. Their accountant said they were going to lose their ag exemption unless they got some livestock.

Now I gotta go research it Mrs. Smarty Pants.

Check the definition for livestock...a chicken is considered livestock. Seriously.

[trst]

Originally Posted by hannah

Roy, about 15 years ago we bought two acres and put in 4 used mobiles homes. We bought the mobile homes through foreclosure sales and renovated them nicely with custom cabinetry, new windows, new doors, and new carpeting, and concrete block underpinning. They are all four on foundations with nice decks, carports, and landscaping. We rent them out. Recouped investment in the whole deal within a few years and now it is all pure profit except for the tax on the land and the tax on the mobiles homes is miniscule as they are older models. Occassionally we have to shell out to repair something but not often and DH does the repairs unless he is out of town and it's an emergency like a pipe burst or something. They make nice investments for renting out to seniors as seniors love them because they are all one level and we take care of the grounds. They are all HUD approved.

Hannah-did you have to improve the property with electric and sewage access or was it already in place when you bought it? I was wondering how much it would cost to do that.

[jlynn]

Originally Posted by hannah

Check the definition for livestock...a chicken is considered livestock. Seriously.

Actually, early reading of the tax code indicates that a chicken is not livestock. It is poultry.

[jlynn]

Originally Posted by trst

Hannah-did you have to improve the property with electric and sewage access or was it already in place when you bought it? I was wondering how much it would cost to do that.

Its all going to have to do with where the land is located. Can you tie into city sewer, or do you have to set septic tanks? Same thing with electricity. How far does the electric company have to run wire to get to your meter(s).

[hannah]

Originally Posted by trst

Hannah-did you have to improve the property with electric and sewage access or was it already in place when you bought it? I was wondering how much it would cost to do that.

There was electric access and sewerage access but only to the property line. We had to run all the lines in to all the mobile homes. I can't remember what it cost to tell you the truth but all it cost was the actual cost of the electric lines, boxes, and the water and sewerage lines themselves. DH had a backhoe to dig with and free labor of son's baseball buddies. If you feed a bunch of teenagers they will usually work for free. I believe they did it all in a few days. DH is a foreman on home construction so knows what he is doing, all aspects of it including electrical and plumbing. I just wish I could get him to work on my house...