Dayton OH Manufactured Home, good idea?

[jackmichigan]

Originally Posted by HBMama

Hi. We are sort of starting over late in life. We are 60 & 61, I'm now retired on disability. Married just 4 yrs, and lost my home during the real estate downturn plus divorce. I hate renting! There's a mobile home community just south of Dayton (Oakwood Village) that offers newer model double wides for rent-to-own, and for a bit less than we pay for a duplex in Centerville.

I understand that manufactured homes in parks only depreciate in value, but since we have no resources to buy land, this seems like a good starting point to owning our own place. I've spent several days researching pros and cons of owning a MH. Our long term goal is to live there 2-3 yrs, buy a regular home with his VA eligibility. Then use the MH as rental property.

Does this sound like a smart plan or not?

Then don't buy a mobile home in a mobile home park! You'll be stuck continually paying lot rent. I consider buying such a mobile home the worst of both worlds: you've bought a depreciating asset and then you're stuck with continual lot rent, with no control over rent increases.

When you buy a mobile home in a mobile home park, you're really at their mercy. Mobile homes are usually difficult to sell (hence, they're offering a rent-to-own) and, since they're expensive to move, you really don't have much choice when lot rents go up. The lot rent, of course, is where mobile home operators make their money. They know that suckers...I mean, purchasers, won't have much choice but to pay up of lose money trying to sell.

In general, I consider buying a mobile home to be a very poor investment--especially if you plan to sell it or rent it out in 2-3 years.

[jaynarie]

The only time buying in a mobile home park is remotely a good idea is when you cannot get an apartment large enough for your family, you cannot afford to rent a single family home large enough for your family, AND you plan on living it until it is paid off.

I have a family member who purchased a brand new double wide around 1994 and it was in a brand new park. They began trying to sell probably around 1998 (I know it was prior to 1999 because they remarried that year.). The home was worth less than they owed, so they were unable to sell it. They finally sold it in 2010. The depreciation finally met what they owed on the home. They walked away with nothing after the sale.

[HBMama]

It's been a year since I first posted this, and we did a LOT of research in the year's time. I want to thank all contributors to the thread! Lots of food for thought here.



We have decided after looking at every option and talking to a lot of folks NOT to purchase a mfg/mobile home unless it is only as an investment to use as a rental unit. That said, we are renting a brand new one now in Nokomis. We arrived just a few weeks ago, and I for one, am delighted to be "back home" in the Venice area! At least we are getting a taste of mobile home community living. So far, so good. But we will be using husband's VA eligibility and begin looking for a forever home next summer as this lease draws to a close.

[Schmooky]

And hilariously we now live not too far from where you were looking. Hahaha! Glad you have an opportunity to buy in an area you prefer - and having lived now in an old ranch we are renovating in a really great neighborhood I’d say I’d recommend that over a manufactured any day in this area. They retain their value so much better and there is plenty of inventory. It just doesn’t make much sense anywhere in Centerville/Oakwood/Kettering. I still don’t love the property tax though, I hope you have better luck with that in Venice