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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{ 55 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.
Me & my wife have lived in a 1976 Mobile home on 2 acres in Va. for over 28 years. Has been paid for over 20 years. I am lucky that it’s in a very nice area in Va. everything is close by. A Walmart less that a mile away. Only problem has been years of cutting down TREES. Living in a Mobile Home has made live easier.
I’m finishing up school and my wife, who has graduated, makes just $7/hr… we bought a mobile home with lot rent @ $250 and are able to make all our payments, and have money left over… Really good option for students… we bought it outright with savings, but if you have a relative that can lend you the money to purchase it, all the better. Ours is about 10 yrs. old, and in pretty good shape. As long as you treat it like you will your future house (i.e. regular maintenance, paint jobs, etc.) Not only do you get your own place with more privacy, but it has more space than an apt. and we even have an extra storage shed for all the stuff we inherited when we got married. It’s not a bad investment, and if you live frugally, you can really come out of school on top. Since we live in a college town with a growing school, inexpensive housing is always in demand, and we should be able to sell it for more than we bought it for in a year or two, especially with a few inexpensive upgrades (new paste on tile flooring, paint job, etc.)
Not to go too far off topic, but…I’ve been involved with construction for several decades, and have focused on alternative construction.
Here’s my thought ~ Straw Bale homes.
I’ve studied these things for years, learned the techniques, and been involved with a number of them being put up. Before you laugh, I’d ask you to do some research on these as an option.
One thought I had was to organize an artist’s cooperative around straw bale homes and studios. Northern New Mexico or Southern Colorado offer an ideal climate for this type of project, and land can be found at some very reasonable prices.
With the increased output in solar voltaic panels now, it’s also becoming a reality to live off of the electrical grid. It takes a willingness to begin to think differently about your dwelling, but for some of us, the freedom from debt and good that comes from living closer to the earth is worth the exploration.
We bought our fixer-upper 2 bedroom older single-wide trailer for $1 last year. Yes, a dollar, and it didn’t need a lot of fixing to be livable. The lot rent is $430, but we don’t pay property tax. The management is pretty fair about enforcing park rules, which makes it nice for everyone. I’d never go back to a stick-built home. In fact, we might not ever “upgrade”; this is a big enough home for 2 people and 2 cats.
I live in a trailer park in minnesota and do not like it one bit. It is a crowded small lot with high lot rent and cliquish neighbors who couldn’t care less about you unless you are in their crowd. There’s an old, crabby lot manager and the mobile home is very hard to sell. I cannot wait to move. Hopefully soon!
I lived in a 2 story house in a nice neighborhood for 20 yrs. while the kids were growing up. Now I live in a single wide mobile home on 2 acres in the country. My choice. I have a 2 car garage and fenced property and I can sit on my porch and not have neighbors looking in my windows. I traded up in my opinion. I’ve done all that keeping up with the Jones and for me it was ok for awhile but now I want to enjoy my life and I am. My cost of living has gone down and I get to enjoy more traveling than before. It just all depends on what you want out of life.
This looks like a site I may check out now and then, glad it looks like it’s still active.
I also owned a single wide 12×65, lived in it for 2 years, 78/79 it was a 72 got it from a retired air force guy that went to FL for 4500. When I got on orders to Korea I decided to go with a house here though, I felt it was a better place to leave the wife alone. I actually sold the thing for what I paid for it, my down payment on the small house was 5k at the time, so I only had to put 500 more out of pocket to move into the house.
Now I been here almost 28 years, the house was paid off in 07, and I’m actually starting to wonder again about going to a slower pace again. Only problem now is that since I only pay property tax my actual monthly cost ( house alone) is around 105 if you divide the annual tax by 12. so a lot fee would be more, but the up keep would be less.
Anyway I’m just “thinking” for now, and whether to stay here in VA (south of Richmond) or move to FL with the rest of the old folks. where the tax would be a bit better as a military retiree since VA taxes my mil retirement.
@Hoody,
Thanks for your story. If you are referring to my site being active, yes it is. I invite you to keep visiting here as I make it my full time “job” to ensure this place provides rich resources, products, services, ideas and discussion in the area of personal finance.
Glad to hear about your plans. I personally like Florida. Would move there from CA if I could convince my spouse. I like the hot weather.
cool deal SVB,
Yeah I hear a lot of crazy things about CA lol. btw a kid I know from here moved out there a couple years ago, he seems to be OK I guess, he works for Symantec as a programmer and I think he does some sort of modeling on the side lol, what ever pays the rent right.
I’m assuming that because the housing market is so messed up and the price of homes are much lower now it may be that the mobile home market is also in a price reduction, I don’t know this for fact but it seems like it would be since a house would seem a better deal to a younger couple with kids if they can get one at near the same cost..
Anyway it would be good to know what the industry is doing. Also unless you can actually find a reasonable cost and lay back park I think owning the land yourself is a better way to go if you plan on staying “long term”, as long as the area laws will allow it of course.
My choice would be a single wide 14×70 2b2b and not older than 2 years from the year you buy it. This would be plenty enough room for 2 people, my small house is only 1,100 as it is. Anyway like I said this is just a passing thought in the back of my mind for the moment, but it is there 🙂
I also looked into WY and SD, 2 of the states Kiplinger has in the top ten as good places to retire due to tax or cost. but they don’t have the warm weather of FL , lol.
Thanks for the site!
BTW: here’s a site you might find interesting
http://adventuresinmobilehomes.blogspot.com/2010_11_01_archive.html
I think you should definitely consider the type of weather, as well as the pros and cons when buying any home. With that said, mobile homes are a great option. As far as I have found, you can get financing for a mobile with or without land most places. My husband and I are going to buy a home and land shortly. We have already obtained financing through a Clayton home dealer in our area. We plan on finishing up with applications at many other places as well in order to get the best interest rate and pricing on the home. There are tons of mobile home dealers, so you should shop around when it comes to that.
Check their ratings with the Better Business Bureau, see if people have reviewed them online, as well as looking at their homes and asking around. It doesn’t hurt to take someone you know around with you who is skilled in carpentry or such to evaluate the quality of the homes on a dealer’s lot or on a personal sale. In our area, the price of mobile homes are going down just as constructed ones are. Many people are upside down on mortgages and such losing value on their homes due to the economy etc.
You can check into dealers such as Fleetwood, Clayton, Factory Expo Homes. There are many, a quick search for ones in your area should yield a good list of them. Land here where we live is cheap, the plot we will probably buy is around five acres for an asking price of $15,000. The home we want will probably be less than $50,000. We plan on putting in a basement for extra space and as storm shelter protection. The taxes around here are really low, as is the cost of living. I don’t think I could live in a mobile park for an extended amount of time, but on a temporary basis it would be fine. You have to research parks just like you do the home you buy.
If you don’t think you can afford the land, maybe look into renting part of it out for someone to put their mobile home on or selling part of the land if you don’t need it all. Then you won’t have to do any maintenance on the home, just cut the grass etc. I know more than a few people who have rented out their land for a lower price than the parks, also offering more privacy. This enabled them to cut their payments in half, or have no payments and some money to pocket as well. When they got tired of renting, they just gave the renters notice, and they had enough time to move their homes elsewhere.
Not all mobile homes are metal either, the ones we’ve looked at are just like a regular house except they are built on an assembly line. Some have metal and some have vinyl siding, others you custom design and order them using the materials you choose. I’m still in research mode, but I plan to find out everything I can before we actually purchase one. My grandparents bought a mobile home for a relative to live in on their acreage. Once she moved out, they sold it many years later for a decent amount of money. Demand is up for cheaper living spaces around here so mobiles go pretty fast.
Buying a mobile home can be difficult if you want to put it outside of a park. Many times, you run into issues w/ financing, where a bank won’t lend the money for the property because it’s not permanently-affixed to the foundation (especially if the lender is Fannie or Freddie). Or, if you try to get a mortgage for a mobile home, many lenders won’t touch it unless you’re above a certain point (around Minnesota, it seems like $25,000+ is about the lowest a lender will lend). At that point, a personal unsecured loan is an option, but you can expect to pay a higher rate since the loan isn’t secured by property.
Here’s the frustrating thing: Sometimes, an issue (like lack of foundation, or lack of code compliance, or what have you) went unnoticed during a previous transaction, but then when another buyer went to purchase, they couldn’t purchase due to the lack of permanent foundation. What a pain….
With older homes, you can usually pick them up for much less. Of course, they’ll probably need some work/updating to make them a bit more liveable. The tough part is…where do you draw the line? You want to make improvements, but you don’t want to spend more on the improvements than what you’ll get out of it, right? (right.) The biggest bang for the buck when selling comes from just making sure things are clean, de-cluttered, and de-personalized. Don’t leave things laying around. Don’t let the place smell like cats/urine/garbage (obviously). Keep the exterior (especially the entrance area/door) clean and maintained, because first impressions count!
Hope that helps someone out 🙂
I live in a mobile home in Canada, have been here for 6 yrs. I owned a 3Bdr 2Bth brick bungalow with yard and all the other nice things, but I worked full time and then when I finished work I would go home and do house work, yard work and all the other things that are involved in being a home owner, I was working to keep bricks and mortar. I got wise one day and sold my house and bought a mobile, which is when I started enjoying living, I had more money and more time, and I was no longer a slave to a house.
Living in a park is like living in a small community, there are people you like and those you don’t just the same as neighbors in a regular street. As for rules, well it doesn’t matter where you live there are rules, bylaws etc. it’s up to each individual to research the park and its expectations, my park is an adult lifestyle, so there are no wild parties, no old beat up trailers with all kinds of junky cars etc. everyone takes pride in their lot.
I had this notion before I moved into this park “Trailer Park Trash”, well with some models costing more than a so called regular home, I was soon eating my own words. Life is to be enjoyed, not to be a slave just to be one better than the Jones, with mortgage payments and all the up keep required to maintain a house.
I can go to bed and sleep because my home is paid, and I still have money to do the things I want, it’s a great lifestyle check it out.
I wish they had that option in nyc…I wish they had a trailer park for people who have no homes…if you guys know about one in nyc please let me know….xoxo
Great posts! We have been considering the option of buying a mobile home pre 1980 under 60k in San Luis Obispo, California. I’ve been reading up about it a lot, but I can’t find any examples. I’m trying to get a clearer picture of the different costs that add up (insurance, DMV registration fees, insurance, etc…) Can anybody provide me with an example of all the monthly or yearly costs of ownership of a mobile home in a park? I realize it depends on many factors, but just curious…
Thanks
@BRAK,
I’ll try to work something out as far as costs of ownership for a mobile home. I’ll see if I can make updates regarding this information on this article. It’ll take a little time to dig up this information so I appreciate your patience! If someone can provide this info and know a little about this, I’d love to hear from you as well. It would be interesting to see what your locale offers!
I’m looking for one right now — it is a good option and with income tax returns coming soon, I’m hoping that my wife and I will scrape together enough to buy one outright.
I need house/trailer on own lot or acre. No trailer parks.
We have a vacation “immobile home” place in a resort in California. Our utility bills on our regular home are higher than the park rent, utilities, insurance, taxes and everything else on the MH. We spend almost every weekend there, along with a whole bunch of new friends that have discovered the same. A few years from now, it will be our regular place, along with another in a different state.
Greetings – glad I found this site. We are thinking of buying a double-wide in a park in Alabama to retire in. My concern is pests. (Mice, bugs, etc.) Are they easier to get in than in a regular home? Has anyone had problems with that type of thing?
Thank you – Lucy
I am looking for a cheap single or doublewide 4bedroom 2bath. I can only spend $6,000 to $10,000. I have 3 kids an need a home for them. I can put it on some land. Looking for land too. But I can’t spend more than $2,500 an acre. Please help.
I need a used trailer but no trailer parks.
I have an 1983 fleetwood in great shape. Runs great. Low miles! Anyone interested, write me. Also we are thinking of buying a 1985 mobile home as our vacation home. Cost 50,000. lot rent. 450.00 mo. 2 bed 1bath. Family of 5. Any thoughts?
I want to know if anybody knows where my husband and I can rent a trailer on two acres of land for $300 a month ?
Having been served with divorce papers after 36 years of marriage, I needed to find a place of my own in short order. After selling our marital home and dividing assets, I had a fair amount of $ in the bank but if I bought a conventional house I’d have used it all up and probably still have had to take out a mortgage in the northeast. I ended up buying a double wide in Massachusetts in my home town, close to everything, park is decent, park fee is $ 395. I purchased for 42K cash. I am discovering the living is cheap, cheap for heat and electricity etc. The mobile home had all new kitchen appliances, new heating, new cooling all interior repaint and carpeting. Its very roomy, the neighbors are quiet. There are park rules but nothing that would prevent me from doing what I want to do. I have friends over, cookouts that kind of thing and I’m not violating any rules. I’m 55, I purchased this as a temporary solution to what has happened to me. It may well be my permanent home for the rest of my life. I have extra money at the end of each month that I am saving, I can get out now and then with friends for dinner etc. I’m not really seeing a downside here.
Does anyone live in a senior park in Vero Beach, Fl?