U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Renting
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Old 09-26-2010, 12:20 PM
 
Location: Polish Hill, Pittsburgh, PA
26,549 posts, read 47,213,684 times
Reputation: 11418

Advertisements

I've recently begun to consider possibly purchasing a modular home in a manufactured housing community (a.k.a. "trailer park"). I'm a gainfully-employed 23-year-old who has found a very nice home for $86,900. This home features 3-BR/2-BA, and nearly 1,800 square feet of living space. If I were to put $5,000 down and finance the balance ($81,900) at a 6.5% interest rate with a 15-year note my monthly payments would be $713/month. My plan would be to retain the largest bedroom for myself, keep one of the other two as a guest room, and then rent out the third bedroom (and second bathroom) to a roommate to keep me company and to help bring that mortgage payment down. I could probably get a tenant for $500/month, given the local market, which would bring my monthly mortgage payment down to $213/month.

My main questions are, more or less, "what's the catch?"

-I'm realizing that there will be much more to add onto that $213/month figure; however, I'm still unsure as to how manufactured home communities "work."

a.) Do individual homeowners pay property taxes, or does the community itself take the tax whammy and then distribute it equally (or proportionately based upon lot size) amongst all residents?

b.) Just how expensive, on average, might "lot rent" be? Do all communities have this? If I'm going to be paying an exorbitant amount of money (i.e. $500/month+) just to rent the land my modular home is sited upon, then that makes this investment a much less attractive idea.

c.) How much "control" do you typically have over your lot. For example, if I wanted to plant a sunflower garden, tomato garden, apple tree, put in a koi pond, etc., do I have to get prior approval from the community?

d.) If the community's management company decided they wanted to sell to a developer who would then raze the place for commercial development options, then what recourse, if any, would we have as residents? The place where I'm considering moving to (Winchester, Virginia) is growing rather rapidly as a distant bedroom community to the DC suburbs, so this is a very real concern.

I'm currently paying $1,105/month to rent a 1-BR apartment, plus utilities, which brings my overall monthly payments up to around $1,300/month. I just don't feel as if I'm getting a very good "bang-for-your-buck" factor here, but if I can wrap my head around this whole situation a bit better then buying a relatively cheap modular home and getting a roomie might be a much more affordable situation with something to "show" for my investment.

Thanks so much! I may be young, but I really want to explore my options.
Reply With Quote Quick reply to this message

 
Old 09-26-2010, 12:42 PM
 
Location: West Virginia
8,230 posts, read 17,169,496 times
Reputation: 4361
Did you figure in Lot Rent?
Reply With Quote Quick reply to this message
 
Old 09-26-2010, 12:45 PM
 
Location: Polish Hill, Pittsburgh, PA
26,549 posts, read 47,213,684 times
Reputation: 11418
Quote:
Originally Posted by Katie1 View Post
Did you figure in Lot Rent?
See Letter "B" in my questions above. I'm just unsure as to whether lot rent is typically so high that it offsets the financial advantages to living in a manufactured home community vs. getting a cheap townhome at a slightly higher price point but owning the land (hence no lot rent and possibly lower monthly payments overall). Where I live in Northern Virginia my income of $52,000 will not permit me to buy most decent detached single-family homes, so I'm looking into manufactured housing on rented lots, cheap townhomes, or possibly a condo.
Reply With Quote Quick reply to this message
 
Old 09-26-2010, 12:51 PM
 
Location: West Virginia
8,230 posts, read 17,169,496 times
Reputation: 4361
You going to have to ask the LL on how much control. Around here there are Rules for EVERYTHING! Even the underpinning. Color you can Paint the MH.. Also MH Depreciate! So dont even Think about Resale Value!! You normally Cant have pet...work on your car.... & You have to ASK them to rent a room or rent the whole MH. To be honest I think this MH is way too high! OH & inst on MH is like 3 times the going rate of a HOME!!
Reply With Quote Quick reply to this message
 
Old 09-26-2010, 01:03 PM
 
Location: SW Missouri
14,851 posts, read 17,990,785 times
Reputation: 18987
Beware the stigma of the mobile home!

Many, many people do not want to live in a "trailer park" or mobile home because typically, there are many low-class people who live in mobile homes. Because of this, you might find it difficult to locate decent, respectable people to be roommates. Many people would rather pay SIGNIFICANTLY more on a monthly basis to avoid the stigma of living in a trailer park. It makes no sense, but this is how it is.

With regard to your other questions, you must ask the "trailer park" manager or HOA, or whatever governing authority there is about the rules and regulations of the park. If the land is being sold with the trailer, then there will be covenants and restrictions. If it is a rental lot, then there will be rules and regulations set forth by the park. Everything MUST be in writing and you need to READ IT to make sure that it is what you want.

The best thing to do is drive around the park at various times of day and night *especially* right after the first of the month when all the welfare types have money to burn. Check out the condition of the yards, the condition of other mobile homes in the park, the presence of broken down, unlicensed cars, and check out the COMMUNITY dumpster (if there is one). Look for a lot of mattresses, broken down furniture and filth.

Be careful if there are a lot of kids running around unsupervised - especially teen agers.

Remember also that it is often hard to sell a mobile home - especially one that does not have real estate. There are precious few banks and loan companies that will finance these days. Once you decide to move on you might find it difficult to get your equity out of the place.

I am not familiar with the economy in your town, but I would seriously consider looking at stick built homes in the same price range to see if you can buy something "reasonably" decent for approximately the same amount of money. You will avoid many headaches if you can.

20yrsinBranson

Quote:
Originally Posted by RestonRunner86 View Post
I've recently begun to consider possibly purchasing a modular home in a manufactured housing community (a.k.a. "trailer park"). I'm a gainfully-employed 23-year-old who has found a very nice home for $86,900. This home features 3-BR/2-BA, and nearly 1,800 square feet of living space. If I were to put $5,000 down and finance the balance ($81,900) at a 6.5% interest rate with a 15-year note my monthly payments would be $713/month. My plan would be to retain the largest bedroom for myself, keep one of the other two as a guest room, and then rent out the third bedroom (and second bathroom) to a roommate to keep me company and to help bring that mortgage payment down. I could probably get a tenant for $500/month, given the local market, which would bring my monthly mortgage payment down to $213/month.

My main questions are, more or less, "what's the catch?"

-I'm realizing that there will be much more to add onto that $213/month figure; however, I'm still unsure as to how manufactured home communities "work."

a.) Do individual homeowners pay property taxes, or does the community itself take the tax whammy and then distribute it equally (or proportionately based upon lot size) amongst all residents?

b.) Just how expensive, on average, might "lot rent" be? Do all communities have this? If I'm going to be paying an exorbitant amount of money (i.e. $500/month+) just to rent the land my modular home is sited upon, then that makes this investment a much less attractive idea.

c.) How much "control" do you typically have over your lot. For example, if I wanted to plant a sunflower garden, tomato garden, apple tree, put in a koi pond, etc., do I have to get prior approval from the community?

d.) If the community's management company decided they wanted to sell to a developer who would then raze the place for commercial development options, then what recourse, if any, would we have as residents? The place where I'm considering moving to (Winchester, Virginia) is growing rather rapidly as a distant bedroom community to the DC suburbs, so this is a very real concern.

I'm currently paying $1,105/month to rent a 1-BR apartment, plus utilities, which brings my overall monthly payments up to around $1,300/month. I just don't feel as if I'm getting a very good "bang-for-your-buck" factor here, but if I can wrap my head around this whole situation a bit better then buying a relatively cheap modular home and getting a roomie might be a much more affordable situation with something to "show" for my investment.

Thanks so much! I may be young, but I really want to explore my options.
Reply With Quote Quick reply to this message
 
Old 09-27-2010, 05:03 AM
 
Location: Florida
11,471 posts, read 8,165,097 times
Reputation: 9378
The first and most important question is does that home include the land?
Only you can find out the answer.
Reply With Quote Quick reply to this message
 
Old 09-27-2010, 06:12 AM
 
2,496 posts, read 5,720,094 times
Reputation: 3076
Check with the Office of the community you are looking in - generally it will be located somewhere within the neighborhood/park.

They will be able to tell you about lot rent (there may be more for "premium" vs. "normal" lots), rules, etc..

We lived in a park, in MI. Rent was about $450/month. That covered almost nothing - just snow removal, a community club house and pool.

You may still have to do your own lawn / landscaping - but will probably have to get approvals (like an HOA) to alter anything.

Mortgage rates are much higher on MH, due to high rate of default.

Insurance rates are higher.

Maintenance costs can be higher, as sometimes things are built differently or you will need a "MH rated appliance" (hot water heaters, furnaces).

Resale will depend on the community and demand. We lost our shirt on our home, as when we bought it (I was 24 - tired of renting) I bought it new and paid full price to a dealer. Over the course of the years (lived there for 10) - people left to move to single family homes and their trailers sat empty and became foreclosed. Eventually many were towed out, leaving empty lots. You couldn't sell yours because the foreclosures were so CHEAP (like $10K) that you couldn't compete.

I wouldn't say its an automatic NO - but you really need to think it through and research it thoroughly. This is a good step - but talk to mortgage lenders/ real estate agents/ insurance companies -and talk to the office at the park!!

Good luck!!
Reply With Quote Quick reply to this message
 
Old 09-27-2010, 06:39 AM
 
1,376 posts, read 1,748,500 times
Reputation: 1613
Go to the community in question and look for a home that looks fairly well kept. Knock on the door and ask the people that live there the questions you posted here. They could probably give you the low down on what it is really like to live there.
Reply With Quote Quick reply to this message
 
Old 09-27-2010, 11:03 AM
 
Location: San Jose, CA
6,868 posts, read 16,981,417 times
Reputation: 2581
Quote:
Originally Posted by Briolat21 View Post
Mortgage rates are much higher on MH, due to high rate of default.
My understanding is it's not so much the default rate on the loans, it's the fact that the homes depreciate so severely, so you're very likely to be upside down at any given time on a MH loan and the bank is more likely to lose money if you do default.
Reply With Quote Quick reply to this message
 
Old 09-27-2010, 02:36 PM
 
Location: West Virginia
8,230 posts, read 17,169,496 times
Reputation: 4361
When buying a MH Check out the Park 1st! Location & Rules! IF you like that ask if any of the Homes already there are For Sale & IF they can stay! Some MH that are for sale in parks Must BE Moved! Also you Need to have approval of the park to stay IF you buy. So Start with the park itself.....then go MH hunting! Most new MH dealers include Setup & Del withing a certain distance. AND some Dealers Have their own trailer parks.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Renting

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top