My in-laws just sold their mobile home within 2 days after relocating to live with a daughter. Admittedly it was a small unit, with 2 bedrooms and enough space for an elderly couple. But the point is that in spite of a depressed market, there are customers willing to fork over $20,000 to live in that location in South Texas. The common misconception that only poor people live in trailers does not hold up. I have seen all the comforts of home in gated areas such as the one my in-laws just vacated.
Buying A Mobile Home As A Cheap Housing Option
If you’re considering ways to live cheaply, have you thought about buying or living in a mobile home? Here are some thoughts on the subject:
1. It can be cheaper than renting.
Buying a mobile home is an excellent alternative for those unlucky enough to have lost their original homes to foreclosure, or for retired folks who don’t want to splurge a large amount on a regular home. Granted, they’ll have to pay rent for the lot they occupy; my in-laws used to pay around $300 a month including utilities. A small mobile home of recent construction can easily be cooled or heated with portable units. If you can afford to invest between $10,000 and $15,000 in a used mobile home, you will spend much less this way than if you rent an apartment, and you’ll have additional privacy.
2. You may want to consider relocating to a place with a lower cost of living.
Many retirees prefer to relocate to a new neighborhood if they live in the northern part of the U.S.; we call them winter Texans for obvious reasons, but quite a few decide that they like their new location sufficiently enough to make it permanent. They enjoy another bonus available to those who live on the border with Mexico (swine flu notwithstanding!); set aside all talk of a pandemic, which is a temporary matter, and you’ll find that cheap dental and medical care, including medications, are a few minutes away. Check out the big picture: the cost of living in what we call the Rio Grande Valley is much lower than in large cities, so a modest income can go a lot further.
3. Be watchful of the safety standards for mobile homes.
I was surprised to learn that one in every three homes in Florida is a mobile or manufactured home. These homes must be built in accordance with Manufactured Housing Construction and Safety Standards established by the federal government (HUD) in 1976; do not buy a mobile home made before that date as it can be unsafe. The Florida website on Motor Vehicles Safety recommends the following: All single family mobile/manufactured homes must bear a certification label, which is displayed on the rear of the home. A label is required for each section of the home.
4. Determine how your home’s value may appreciate.
While a manufactured home is not for everybody (e.g. a family with 3 children), it can be a recourse in difficult times, whether you decide to rent vs buy a house. Many mobile homes are set on other people’s land, but you could also buy both the lot and the manufactured home. Now you may wonder about your property’s value over a certain period of time. If the mobile home is well maintained, and if the area of the country where you live sees enough traffic, growth and jobs, your property’s value may hold up pretty well. It is nevertheless a bargain to buy a used manufactured home compared to a regular house. So study the options before deciding to buy.
For those looking for some serious bargains in housing, check out this really cheap real estate. Here are some deals on $1,000 homes here and here. No matter how bad the market, location or territory, I just can’t believe that there are actual homes selling for this much!
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{ 29 comments… read them below or add one }
A friend of mine bought a mobile home 6 weeks ago and she was telling me the same thing. Mobile homes are affordable (at the moment) and they sell fast even one that is 5 years old (as my friend bought).
For larger families, (even those with 3 children), there are larger mobile homes than the one your inlaws had. Many have 3 bedrooms, and there are even what are called “double wide” mobile homes, which are twice the width of a standard mobile home and once inside- you would barely know it as a mobile home. One of the biggest mobile homes I’ve seen had 5 bedrooms, 3 full bathrooms, a dining room, living room and eat-in-kitchen. While not as inexpensive as the single-wide, 2 bedroom mobile home, the double wide versions give you more space and are still a bargain over most “regular” home prices.
I’d go for it, but my wife, ummm.. not so much..
True on the affordable price but on top of your loan payment you’ll have mob home park fees which nowadays up here in the high desert can get as high as $500 I’ve heard. Sarah and I lived in a mobile home the first 3 years of our marriage and it was cheap because we owned the home outright. Our fees were like $330 mo. so that was amazing but they were always coming around and enforcing ridiculous codes like an awning a couple inches too far extended or rusty this or that. Make sure you interview the landlord/company and ask the people living there what the vibe is like.
There is a college in my state that uses mobile homes for student housing. It’s brilliant. Students pay $200 a month in rent each and every weekend is a huge party that no one has to drive home drunk from. It couldn’t be a better, cheaper, safer system for college.
I’d never live in one, seen too many torn up on those tornado shows.
Hmm, I’m personally weary of this idea. It may offer a cheaper barrier for entry but you may be stuck with an albatross when you’re ready to move up.
Sure they may be selling now but that’s because the market is flooded with people that have no money but still are giving way to the ownership bug. Once things rebound – of these people wake up – you maybe left with an aluminum box you can’t sell.
I’d rent even if the monthly fees are a little larger… there’s the hidden costs of ownership (insurance, maintenance, park fees, etc) that bring those numbers back into proximity and that’s before you consider the flexibiliy afforded by temporarily going the rental route.
I’m a huge fan of making smart money saving decisions but you have to consider the long term as well as the short or immediate term. I was listening to s Zig Ziglar podcast just yesterday on selling…. and he suggested a question to ask potential customers that parallels here (paraphrasing) – “wouldn’t you rather spend a little more than you expected now than realize later that you had spend less that you should have”.
Hey good thoughts and great discussion… thanks for engaging us!
Dave
Damien and “David Ramsey” have a point; hidden fees and picky neighbors can create hell; of course, that is true of apartments (I have the experience) and regular houses. Your neighborhood can go to pot very easily. My in-laws lived in a gated community for seniors that did not allow dogs ( for obvious reasons) and/or children except for visits.
We don’t have tornadoes in South Texas but we have hurricanes and mobile homes may suffer the consequences very easily, though I have seen regular houses destroyed also. So if you have a limited budget, a mobile is still a better alternative than an apartment (in my opinion). It gives you more privacy and it’s yours to sell.
One of my friends lived in a double-wide and that thing was huge! (that’s what she said) If I could finagle a way to plop one of these down in downtown DC it’s totally on. Well, that and if my wife would allow it
hmmm… there are more advantages to mobile homes rather than disadvantages… in fact, it can help many students because of its price..
Well I think renting is better option when considered on a whole . This works for some and not for all.
This concept though is nice is not available in contries like India..In such countries what do you suggest ..renting or owning???
Six years age I sold a deluxe FL beachfront condo and paid cash for a 3bd 2ba double wide mobile on an acre. It also has a rentable cottage and above ground swimming pool and deck. The price was under 50K and I have never been happier with where I live. I’m able to garden, grow some of my own food, swim whenever I like and visit or not visit with neighbors. I can work part-time and pay my bills. The taxes are just $600.
My parents lived in a mobile home park in a 30K 2bd 2ba doublewide with a park rental of $250/mo. they paid no RE tax as the unit licensed as a vehicle so they had to purchase inexpensive stamps each year like a car plate registration.
Also, you find mobile homes living in many of the less expensive areas of the country for shopping, food, necessities, etc.
In all, it is very affordable and comfortable living.
There is definite merit in owning rather than renting, no matter how modest. To live in an ostentatious manor is not within the financial wherewithal of many people, and lets be honest, it is just a bit OTT in today’s times.
Prashant, as a guy born and raised in Europe, I have never seen mobile homes over there either. But since most Europeans rent and can ill afford to own a home, a high rise apartment is the only viable solution. A mobile home is a very American concept and as Sandi states, it can have definite advantages. The problem of hurricanes and tornadoes affects everybody, not just mobile homes. Plus, the strange (for me) habit of using wood to build houses instead of cement blocks also contributes to the risk with high winds. In any case Prashant it is always a better option to own rather than rent (if you can afford it and if you plan on staying there a long time).
Thanks for the feedback
Moving to a lower cost of living is a nice idea in theory but it’s hard to actually do. With your network, your work, and your comfort zone all in one place, it’s hard to justify moving too far just to lower the cost of living. However, you can do it if you’re willing to lengthen your commute!
The reason you can buy an older mobile home so cheap is because it has depreciated in value . Unlike a house, which goes up or at least retains its value, mobiles home decrease in value. Hence this is not a good investment, unless you plan to live in it forever and you aren’t worried about selling it at a later date.
I like the concept of mobile homes just because they are so cheap. A friend of mine how moved into one said “I always said I didnt know why people lived in mobile homes but now I do they are freaking cheap”. The only downside is they tend to devalue year to year. A 12 year old one is worth much less than a 1 year old one.
I like buying and living in half a duplex more. You can get some pretty low payments that way. The few years we lived in a duplex we were able to save alot more than living in a house.
I live in a mobile home… Perfectly suits me, it is in a clean family neighbourhood, and it gained a lot since I bought it. Actually as of now I could sell it in this downmarket and get a almost twice what I paid for… But this is Alberta, wich was booming for the last years.
They are very well built as well, not like in the 70’s and 80’s.
Did I mention cheap… Mortgage + Land taxes 600$/month (the downpayment was 5%)
Greatest investment of my life so far.
It is an interesting concept. I, myself being young and single wouldn’t really mind living in a modular home or mobile home. The biggest benefit that I can see would be a lower cost of living. Even if you could afford a 200 or 300k dollar house. And if you can get past the stigmas attached too mobile homes/trailer park living. Imagine the amount of money $$$ you could save? Especially if you earned 40k-50k a year. Three to five years of modest living…you could save and invest a fortune. With that being said, you could almost go out and purchase a regular home outright.
Mind you, some modular homes around here I have seen priced over 100k and some even as high as 190k. So you gotta be diligent. But it is a plausible solution.
I have lived in my mobile home for 10 yrs now and it was a good choice for me. Bought it for 17,000 and this has allowed me to save a lot of money. It is true you have the park fee’s and rent increase every year. Along with dealing with park management and THEIR rules which is a pain sometime. At the time it was either this or rent an apartment and I’m very happy of the choice I made. I live in California, so not worried of tornadoes but of earth quakes.
Yeah, I just bought a double-wide mobile home after years of throwing money away in cramped, noisy apartments. I wish I had known about this sooner! I enjoyed the whole process so much I’m writing a blog about it so other people can learn too. Click on my name above to check it out!
Thanks for all the info on this everyone! Brad, very interesting that you are writing about your experiences in a blog. I think the info you provide there based on first hand experiences will be valuable! So yes, keep it coming. I’d like to hear more about this option for affordable housing.
Thank you for sharing this, I think the idea of buying mobile home or manufactured homes is the best answer if you want to save money, instead of renting apartment. Hope to read more about this topic..
My friend has managed to live in a trailer home for 20 years with only odd jobs. Even in New York (which can be an expensive state) trailers are solid and affordable. However, now his home is starting to fall apart and he needs to pump money into it to keep things together. It’s not even mobile (it was converted to be stationary). The lack of longevity is really their major downfall.
Did you hear about the detroit house that sold for $1.75! I pay 4 cents more than that for coffee!!!
http://livingoffdividends.com/2008/10/07/buying-a-house-for-175/
Wow, that’s crazy — a house for $1.75? Isn’t the land even worth anything?
FYI, you can live in a mobile home…..drum roll please….without living in a trailer park…
I don’t know why people would ever want to live in a park, and pay lot rent, and abide by stupid park rules. It’s much cheaper to live on your own land. Pretty crazy scam with the mobile home parks if you ask me. For the love of all thats holy, if you’re going to get a mobile home, get one on it’s OWN property….
Hi. Im In the Process Of Looking for mobile home to buy. but i am in no way in touch with how to even start to look for a really nice mobile home ppl to help me out. any advice on where to exactly start. mobile homes are really nice i think cuz they are a lot roomier and i think look better. if anyone can help me out and point me to a really good person who can help me with all the details on how to buy my first mobile home that would be great. leo_girl_24@hotmail.com.. thanks a bunch.. Lisa
Not always the most practical option, but can definitely save a bundle in the long run.