As most experienced investors know, real estate investing should not be restricted to traditional income properties. In fact, there are various types of real estate investment properties that can be just as profitable, and more importantly, undervalued relative to regular homes. A perfect example of this is manufactured homes. Over the past few years, these properties have emerged as a solid alternative for real estate investors seeking to diversify their portfolio. So what exactly are manufactured homes? And where to look to find manufactured homes? This article will go over the main features of these properties and detail the process of finding manufactured homes for sale.
Manufactured Homes: A Definition
As you can possibly guess from the name, manufactured homes are properties that are prefabricated and assembled in factories. This uniquely American type of housing occupies around 320 square feet and is continually transportable. The affordability of manufactured homes has made them a popular option for real estate investors and homeowners alike. In fact, the number of people who live in manufactured homes has soared to 22 million in 2018. Needless to say, buying a manufactured home is the best way to capitalize on this trend.
Before showing you how to find manufactured homes for sale, let’s delve into the advantages that you can expect from this real estate investment.
What Makes Manufactured Homes a Good Investment?
Investing in manufactured homes offers a myriad of advantages to any real estate investor who is willing to do the necessary groundwork. Here are some of the pros of buying a manufactured home for investment:
1- The huge upside
One of the most obvious advantages of buying a manufactured home is the huge upside potential that comes with this real estate investment. As we have stated above, the current housing market trends point to an ever-increasing demand for manufactured real estate. Consequently, getting in right now will allow you to ride this bullish wave and generate a decent return on investment.
2- The low operating costs
Another factor that should prompt you to start looking for manufactured homes for sale is the low operating costs. These properties have very few maintenance requirements and the process of preparing them for tenants costs very little. Moreover, the low per-unit pricing coupled with the high cap rate makes these investment properties extremely attractive.
3- The quick installation
If time is an important consideration for you, then manufactured homes are an ideal real estate investment. Unlike traditional properties, these homes can be made and installed within a month. This is especially valuable if you are planning to invest at scale or implement a buy and flip strategy.
4- The energy efficiency
The low price is not the only affordable aspect of manufactured homes. These investment properties are also characterized by a high energy efficiency that is not common in traditional homes. This is mainly due to the simple wiring and plumping as well as the upgraded insulation.
Related: 7 Ways to Establish Your Investments as Energy Efficient Properties
The next section will focus on the process of finding manufactured homes for sale.
Finding Manufactured Homes for Sale
Investment property search can be quite frustrating if you don’t know where to look. This is even more so the case when you’re planning on finding investment property that does not fall under the traditional category. In any case, here is how you should go about finding manufactured homes for sale near you.
1- Choosing between used and new homes
The first thing you need to consider before you start looking for manufactured homes for sale is whether to go with used manufactured homes or a new manufactured home. Each option has its own set of advantages and drawbacks. For example, a new home gives you a wide range of options when it comes to customizing the property as you see fit. On the other hand, going the used route can save you a lot of money.
2- Working with a real estate agent that specializes in manufactured homes
The increased demand for manufactured homes has also lead to the emergence of real estate agents that specialize in these real estate deals. Retaining the services of these agents will allow you to zero in on the most profitable manufactured homes for sale in your area. Moreover, the agent can also provide guidance and advise you on the right strategy to implement for your income property.
3- Using real estate websites
Real estate investment websites can be extremely valuable to investors. Besides helping you find investment properties for sale by owner or agent, the tools that these platforms put at your disposable enable you to carry out a comprehensive investment property analysis. Needless to say, this will ensure that your investment is capable of generating a positive cash flow. Mashvisor is a perfect example of an all-encompassing real estate investing platform. By using tools such as the Property Finder and Rental Property Calculator, you will be able to find the perfect manufactured homes for sale and analyze them in a few minutes.
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Where Should You Invest?
Picking a good location is paramount when you’re looking for manufactured homes for sale. Before buying a manufactured home to rent out, it’s important to have an idea of the real estate market dynamics in the area. Here are some of the locations that you should consider investing in.
Despite a cool-off in the past few months, the Oregon housing market still offers a number of opportunities to real estate investors. Locations such as the Salem Metro Area and Douglas County are especially interesting due to the low median home value.
Related: Oregon Housing Market 2019: Why and Where to Invest
This is the most populous state in the southeast. Furthermore, Florida boasts solid fundamentals that guarantee the profitability of any real estate investment. Jacksonville and Tampa are two markets with huge upside potential.
The Michigan real estate market is one of the hottest in the country right now. The continuous population growth coupled with the expansion of the job market makes renting out a manufactured home a profitable strategy. As for specific markets, Ann Arbor and Sterling Heights look highly promising.
Related: 4 Best Places to Invest in the Michigan Housing Market in 2019
Ohio is another real estate market that you should strongly consider. On top of the major metros, you can find tremendous investment opportunities throughout the state. Ohio has the 7th GDP in the country and demand for all types of rental property has never been higher.
The Bottom Line
Finding manufactured homes for sale is easy when you have a clear idea of what you are looking for. As long as you stick to the best practices outlined above, the process should be quick and easy.