Comments on: Are Mobile Homes a Frugal Alternative? http://frugalhacks.com/2009/03/14/mobile-homes-frugal-alternative/ Good stewardship in action. How do you do it? Sat, 11 Feb 2012 00:10:21 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: AJ http://frugalhacks.com/2009/03/14/mobile-homes-frugal-alternative/comment-page-1/#comment-9364 AJ Thu, 26 Jan 2012 01:04:07 +0000 http://frugalhacks.com/?p=1077#comment-9364 Mobile Homes are a frugal alternative, if one can buy them cheap enough. I would never buy a new one, because it’s true, they depreciate just like a car does. I ran across a nice priced 1 acre with a 3 bedroom, 2 bath single wide and inquired my bank about financing. This is a bank that just approved me for a home I was looking at, 2 weeks prior to inquiring about the 1 acre with MH on it. They would not touch a loan on a MH. So I went looking for who would. I found that even with excellent credit, those who would finance a MH, had interest rates that were gouging and made my stomach ache. I’m way to frugal to have jumped in that direction. So, I knew the sellers for a few good years and suggested they offer up an owner financing, as I refused to pay high interest. They were really wanting to sell and we worked together on a short term contract @ 3% interest. After all the scary stuff that has happened to the economy, banks and etc., I am content of my choice. Especially where I’m self employed in this economy. It's paid for under five years, I'm dept free in a worried economy, with some money saved as well and I’m not stressed. After the down fall, even house values fell. So If a mobile home is of interest to someone, buy it cheap enough and there should be no frugal regrets. Mobile Homes are a frugal alternative, if one can buy them cheap enough. I would never buy a new one, because it’s true, they depreciate just like a car does. I ran across a nice priced 1 acre with a 3 bedroom, 2 bath single wide and inquired my bank about financing. This is a bank that just approved me for a home I was looking at, 2 weeks prior to inquiring about the 1 acre with MH on it. They would not touch a loan on a MH. So I went looking for who would. I found that even with excellent credit, those who would finance a MH, had interest rates that were gouging and made my stomach ache. I’m way to frugal to have jumped in that direction. So, I knew the sellers for a few good years and suggested they offer up an owner financing, as I refused to pay high interest. They were really wanting to sell and we worked together on a short term contract @ 3% interest. After all the scary stuff that has happened to the economy, banks and etc., I am content of my choice. Especially where I’m self employed in this economy. It’s paid for under five years, I’m dept free in a worried economy, with some money saved as well and I’m not stressed. After the down fall, even house values fell. So If a mobile home is of interest to someone, buy it cheap enough and there should be no frugal regrets.

]]> By: Steve http://frugalhacks.com/2009/03/14/mobile-homes-frugal-alternative/comment-page-1/#comment-9176 Steve Sun, 18 Dec 2011 14:39:59 +0000 http://frugalhacks.com/?p=1077#comment-9176 If in a park they depreciate. The depreciation, loan interest (rate is very high), and lot rent add up to quite a lot. Not to mention the cost of repairs and maintenance. Mobile homes are prone to water damage from leaks around windows, doors, vents, roof flashing and inside faucets, tubs/showers, water heaters and air conditioning units in the house. They also seem to have issues with water damage at the base of exterior walls which leaves wallboard and floor damage. I have had four and am currently in one. The only reason I am in one is because it is paid for, is in a nice park, with a good landlord and is in a convenient location. Houses in my price range would require me to get a 30 year mortgage and spend almost half my take home pay. Most are in neighborhoods which are not showing much love. Still, if I was to have to make a decision of whether to buy a $100,000 (or less) house or buy a new singlewide and go in a park I am not sure what I would do if the total of payments was the same. I'd likely go with the house since over time they usually go up in value. My math on my situation. In 1995 I bought a new singlewide for $26000 furnished. Had I kept it and paid for 15 years I would have had a total of $27000 in interest and $26000 for the home...$53000 for a home now worth maybe $10000. A loss of $43000. Lot rent paid over those 15 years started at $135 and ended at $200 so average of $170 for 15 years/180 payments comes to $30600. Add $43000 loss and $30600 lot rent and my cost of living in it would have been $74000. Divide that by 180 months. That comes to about $400 a month. Had I bought a house at that time, assuming my payment could have been $470 a month, the numbers would be as follows. (based on $295 mh payment and $170 average amount of the lot rent) I would have had to borrow 50,000 and the rates then were at 8% or higher. If I had put down $5000 I would have had to find a house for $55000. I could have refinanced it and gotten a lower rate and perhaps paid ahead on the loan. In any case I would have 15 years left to pay on a mortgage at $470 month. If I refinanced only once at the 15 year mark down to 4% the payment would go down to $420 a month. Lot rent is now $210 a month, so half of what the mortgage payment would be. Lot rent will only go up over the next 15 years. The house payment would stay the same. The mobile home would be paid for and the house would not. Today, house prices are down and i can get a nice house for $85000 in my area. payments on that would likely be $470 a month for 30 years. A singlewide in my area ranges from $33000 set up in a park, heatpump, steps, skirting, etc to $53000. Interest rates are around 10% last I heard. Using $8000 down as on the house, the $33000 mh would be $268 for 15 years and the $53000 mh would be $483 for 15 years...plus my lot rent of $210 a month. Total now would be $478 a month for the cheaper one and right at $700 for the nicer one. So, if I bought a house NOW I would be in the same situation I would have been in in 1995! IF I bought the less expensive singlewide. Isn't that ironic! What I did not calculate was this...if I had kept the same rate and payment at the 15 year mark, I would have paid...$4000 on the principle over 15 years. I would have paid $27000 in interest. If I refinanced it to half the rate at the point I would owe another $12000 in interest with $46000 remaining on the balance. Total would come to $85000 if refinanced. Current market value would likely be better than what I would have paid for it. What living in the singlewide did for me was allow me to have enough money left over to pay my singlewide off after 8 years. It allowed me to then pay off all my bills and get out of debt. It allowed me to save $40000...yes, $40,000 that I would not have been able to save if I had gotten a house in 1995. Now, I am in the position of knowing I have money in the bank...peace. I also could sell the singlewide I am in now for $10000 and add to it my savings and put down $40,000 on a $85,000 house. And still have $10,000 in savings. But, despite the ongoing lot rent, I like having the savings and a paid for home. If in a park they depreciate. The depreciation, loan interest (rate is very high), and lot rent add up to quite a lot. Not to mention the cost of repairs and maintenance. Mobile homes are prone to water damage from leaks around windows, doors, vents, roof flashing and inside faucets, tubs/showers, water heaters and air conditioning units in the house. They also seem to have issues with water damage at the base of exterior walls which leaves wallboard and floor damage. I have had four and am currently in one. The only reason I am in one is because it is paid for, is in a nice park, with a good landlord and is in a convenient location. Houses in my price range would require me to get a 30 year mortgage and spend almost half my take home pay. Most are in neighborhoods which are not showing much love. Still, if I was to have to make a decision of whether to buy a $100,000 (or less) house or buy a new singlewide and go in a park I am not sure what I would do if the total of payments was the same. I’d likely go with the house since over time they usually go up in value. My math on my situation. In 1995 I bought a new singlewide for $26000 furnished. Had I kept it and paid for 15 years I would have had a total of $27000 in interest and $26000 for the home…$53000 for a home now worth maybe $10000. A loss of $43000. Lot rent paid over those 15 years started at $135 and ended at $200 so average of $170 for 15 years/180 payments comes to $30600. Add $43000 loss and $30600 lot rent and my cost of living in it would have been $74000. Divide that by 180 months. That comes to about $400 a month. Had I bought a house at that time, assuming my payment could have been $470 a month, the numbers would be as follows. (based on $295 mh payment and $170 average amount of the lot rent) I would have had to borrow 50,000 and the rates then were at 8% or higher. If I had put down $5000 I would have had to find a house for $55000. I could have refinanced it and gotten a lower rate and perhaps paid ahead on the loan. In any case I would have 15 years left to pay on a mortgage at $470 month. If I refinanced only once at the 15 year mark down to 4% the payment would go down to $420 a month. Lot rent is now $210 a month, so half of what the mortgage payment would be. Lot rent will only go up over the next 15 years. The house payment would stay the same. The mobile home would be paid for and the house would not. Today, house prices are down and i can get a nice house for $85000 in my area. payments on that would likely be $470 a month for 30 years. A singlewide in my area ranges from $33000 set up in a park, heatpump, steps, skirting, etc to $53000. Interest rates are around 10% last I heard. Using $8000 down as on the house, the $33000 mh would be $268 for 15 years and the $53000 mh would be $483 for 15 years…plus my lot rent of $210 a month. Total now would be $478 a month for the cheaper one and right at $700 for the nicer one. So, if I bought a house NOW I would be in the same situation I would have been in in 1995! IF I bought the less expensive singlewide. Isn’t that ironic! What I did not calculate was this…if I had kept the same rate and payment at the 15 year mark, I would have paid…$4000 on the principle over 15 years. I would have paid $27000 in interest. If I refinanced it to half the rate at the point I would owe another $12000 in interest with $46000 remaining on the balance. Total would come to $85000 if refinanced. Current market value would likely be better than what I would have paid for it. What living in the singlewide did for me was allow me to have enough money left over to pay my singlewide off after 8 years. It allowed me to then pay off all my bills and get out of debt. It allowed me to save $40000…yes, $40,000 that I would not have been able to save if I had gotten a house in 1995. Now, I am in the position of knowing I have money in the bank…peace. I also could sell the singlewide I am in now for $10000 and add to it my savings and put down $40,000 on a $85,000 house. And still have $10,000 in savings. But, despite the ongoing lot rent, I like having the savings and a paid for home.

]]> By: Noelle http://frugalhacks.com/2009/03/14/mobile-homes-frugal-alternative/comment-page-1/#comment-9037 Noelle Fri, 11 Nov 2011 01:36:57 +0000 http://frugalhacks.com/?p=1077#comment-9037 Hi, I am so glad that I stumbled across the blog too. I live in a 1996, 1500 sq foot manufactured home on a permanent brick foundation. When we bought our home I had a 12 month old and one on the way. We were living in an apartment for a while then when baby number 2 was be expected we had to move into a house rather fast. We spent many weeks looking at site built homes but the only ones in our price range were either 50+ year old in bad ares of town or needed repairs that we could not afford or even knew how to preform. By accident we found this manufactured home on the market sitting on a beautiful 1 acre piece of land in the foothills of the Smoky Mountains. We have since then painted all the walls, put in new faucets, and sinks plus other little things. It has become our country dream home, we have plenty of room to put flower gardens, veggie gardens, fruit bushes and trees, and earlier this spring we added 14 Buff Orphington Chickens to our Homestead. Since our mortgage is affordable I am able to stay home and home school my two boys. To me it is my little piece of heaven. I am not sure of the manufacture but the house is in great shape has been maintenance free. All that we have had to do the house are things that we elected to do. We have future plans of adding a detached garage and a screened in back porch. There are a lot of naysayers out there looking down upon manufactured homes but for us it is what has allowed us to live a dept free life in the peaceful country side near the smokey mountains. Hi, I am so glad that I stumbled across the blog too. I live in a 1996, 1500 sq foot manufactured home on a permanent brick foundation. When we bought our home I had a 12 month old and one on the way. We were living in an apartment for a while then when baby number 2 was be expected we had to move into a house rather fast.

We spent many weeks looking at site built homes but the only ones in our price range were either 50+ year old in bad ares of town or needed repairs that we could not afford or even knew how to preform. By accident we found this manufactured home on the market sitting on a beautiful 1 acre piece of land in the foothills of the Smoky Mountains.

We have since then painted all the walls, put in new faucets, and sinks plus other little things. It has become our country dream home, we have plenty of room to put flower gardens, veggie gardens, fruit bushes and trees, and earlier this spring we added 14 Buff Orphington Chickens to our Homestead. Since our mortgage is affordable I am able to stay home and home school my two boys.

To me it is my little piece of heaven. I am not sure of the manufacture but the house is in great shape has been maintenance free. All that we have had to do the house are things that we elected to do.

We have future plans of adding a detached garage and a screened in back porch. There are a lot of naysayers out there looking down upon manufactured homes but for us it is what has allowed us to live a dept free life in the peaceful country side near the smokey mountains.

]]> By: DL http://frugalhacks.com/2009/03/14/mobile-homes-frugal-alternative/comment-page-1/#comment-8874 DL Sat, 24 Sep 2011 16:18:26 +0000 http://frugalhacks.com/?p=1077#comment-8874 Donna: Wow what exciting plans! As the writer of this post about 2 years ago, I thought I would try to comment. Your ideas sound very innovative to me, but I have absolutely no building experience. Husband and I are not of the "handy" variety. Husband did say to be sure you would have roof ventilation. We are still living in our double-wide mobile home which is about 11 years old. We have lived here for 5 years and still are most grateful for our home. I believe there would be some appreciation if we were to choose to sell and due to the economy that is a good thing! Perhaps you may get some comments from someone more knowledgeable than I. Donna:
Wow what exciting plans! As the writer of this post about 2 years ago, I thought I would try to comment. Your ideas sound very innovative to me, but I have absolutely no building experience. Husband and I are not of the “handy” variety. Husband did say to be sure you would have roof ventilation.

We are still living in our double-wide mobile home which is about 11 years old. We have lived here for 5 years and still are most grateful for our home. I believe there would be some appreciation if we were to choose to sell and due to the economy that is a good thing!

Perhaps you may get some comments from someone more knowledgeable than I.

]]> By: Donna http://frugalhacks.com/2009/03/14/mobile-homes-frugal-alternative/comment-page-1/#comment-8870 Donna Fri, 23 Sep 2011 15:47:26 +0000 http://frugalhacks.com/?p=1077#comment-8870 I am pleased to have found this blog, my husband and I are in the process of purchasing two acres in central Oregon. Well power and Septic are in. We will move a 1979 modular (given to us)on to the property with a cement block foundation. We will add insulation and siding with a wrap around pourch, new windows and new roof. We are hoping to spend under 100K on the entire project as we will be doing all the work ourselves. I am thinking the biggest cost will be the acreage its self. We have never lived in a modular (a 5th wheel on vacation and will live in until the modular is done). Any and all advice is welcome. Question, I think that framing the outside of the modular (without taking the original siding off), adding insulation and fire restant siding. The new roof would be metal and cover the house and pourch. Please give your thoughts on this. I am pleased to have found this blog, my husband and I are in the process of purchasing two acres in central Oregon. Well power and Septic are in. We will move a 1979 modular (given to us)on to the property with a cement block foundation.

We will add insulation and siding with a wrap around pourch, new windows and new roof. We are hoping to spend under 100K on the entire project as we will be doing all the work ourselves. I am thinking the biggest cost will be the acreage its self. We have never lived in a modular (a 5th wheel on vacation and will live in until the modular is done). Any and all advice is welcome.

Question, I think that framing the outside of the modular (without taking the original siding off), adding insulation and fire restant siding. The new roof would be metal and cover the house and pourch. Please give your thoughts on this.

]]> By: SusannL http://frugalhacks.com/2009/03/14/mobile-homes-frugal-alternative/comment-page-1/#comment-6105 SusannL Sun, 21 Feb 2010 17:00:51 +0000 http://frugalhacks.com/?p=1077#comment-6105 I live in Florida, a state where mobile homes are plentiful. If you are considering living in a mobile home park, factor in lot rent and/or maintenance fees. Also, there are usually two kinds of parks: Adult communities and general population. Sometimes the retirees in adult communities can be a little too focused on their neighbors and fussy about appearances, noise, visitors, etc. For example, they may complain about extra cars in front of your home when you have guests or noise from visiting grandchildren. General populations parks are just that. If it is cheap to live there, you may have some trouble makers in the community you don't want to live around. (I know there are VERY nice parks- but this is just something to consider. (Investing in motion-sensor lights can cut down on vandalism). Also, if a hurricane comes, be prepared to go to the nearest public shelter unless you have a friend or family member who will take you in until the hurricane has passed. It is foolish to stay in a mobile home and hope for the best. I live in Florida, a state where mobile homes are plentiful.
If you are considering living in a mobile home park, factor in lot rent and/or maintenance fees.
Also, there are usually two kinds of parks: Adult communities and general population. Sometimes the retirees in adult communities can be a little too focused on their neighbors and fussy about appearances, noise, visitors, etc. For example, they may complain about extra cars in front of your home when you have guests or noise from visiting grandchildren.
General populations parks are just that. If it is cheap to live there, you may have some trouble makers in the community you don’t want to live around. (I know there are VERY nice parks- but this is just something to consider. (Investing in motion-sensor lights can cut down on vandalism).

Also, if a hurricane comes, be prepared to go to the nearest public shelter unless you have a friend or family member who will take you in until the hurricane has passed. It is foolish to stay in a mobile home and hope for the best.

]]> By: lynda Puff http://frugalhacks.com/2009/03/14/mobile-homes-frugal-alternative/comment-page-1/#comment-4756 lynda Puff Mon, 25 May 2009 12:02:48 +0000 http://frugalhacks.com/?p=1077#comment-4756 What alternatives are there to tape and texturing a mobile home? We have recently purchased a 1987 double wide in very good condition. However, our budget does not allow us to tape and texture every room. Suggestions please... What alternatives are there to tape and texturing a mobile home? We have recently purchased a 1987 double wide in very good condition. However, our budget does not allow us to tape and texture every room. Suggestions please…

]]> By: Bruce http://frugalhacks.com/2009/03/14/mobile-homes-frugal-alternative/comment-page-1/#comment-4605 Bruce Tue, 24 Mar 2009 15:37:27 +0000 http://frugalhacks.com/?p=1077#comment-4605 Based on your story, you bought this land at least 15 years ago. You didn't mention where in the desert it was, though. If it was near Las Vegas or Phoenix, your story might well be the result of the boom in land values in those areas. So again, the profit you received might be a result of the appreciation of land, rather than the value of the home itself. Do you know of anyone who bought a home and put it on rented land (say in a mobile home park) and also had the home appreciate in value? Based on your story, you bought this land at least 15 years ago. You didn’t mention where in the desert it was, though. If it was near Las Vegas or Phoenix, your story might well be the result of the boom in land values in those areas. So again, the profit you received might be a result of the appreciation of land, rather than the value of the home itself.

Do you know of anyone who bought a home and put it on rented land (say in a mobile home park) and also had the home appreciate in value?

]]> By: KP http://frugalhacks.com/2009/03/14/mobile-homes-frugal-alternative/comment-page-1/#comment-4599 KP Mon, 23 Mar 2009 06:45:47 +0000 http://frugalhacks.com/?p=1077#comment-4599 My husband and I bought a 2 acre undeveloped piece of desert for $10,000 and then bought a 3 year old repo Manufactured home for $30,000. The house was in good shape but did need some work done to it. Over the years we customized it by adding a wrap a round deck, and drywalled the only 2 rooms that were not originally dry wall. and also built a large garage on the property. Since we did most all of the work ourselves and were frugal with recycling and finding bargains, we saved lots of money and had a total investment of under $100,000 for everything. We lived there for 14 years and sold it for $289,000. Never did we imagine our yearn to live debt free in the wide open spaces would pay us so well. The family that bought it from us only lived there a year and resold it for $389,000. So they do not always go down in value. My husband and I bought a 2 acre undeveloped piece of desert for $10,000 and then bought a 3 year old repo Manufactured home for $30,000. The house was in good shape but did need some work done to it. Over the years we customized it by adding a wrap a round deck, and drywalled the only 2 rooms that were not originally dry wall. and also built a large garage on the property. Since we did most all of the work ourselves and were frugal with recycling and finding bargains, we saved lots of money and had a total investment of under $100,000 for everything. We lived there for 14 years and sold it for $289,000. Never did we imagine our yearn to live debt free in the wide open spaces would pay us so well. The family that bought it from us only lived there a year and resold it for $389,000. So they do not always go down in value.

]]> By: Bruce http://frugalhacks.com/2009/03/14/mobile-homes-frugal-alternative/comment-page-1/#comment-4596 Bruce Fri, 20 Mar 2009 22:23:36 +0000 http://frugalhacks.com/?p=1077#comment-4596 Your bank and your insurance company may tell you the home hasn't depreciated, but that does not definitely mean they're right. First, your insurance company is likely considering "replacement cost" of the home should it be destroyed in a fire or other disaster. In such a case, you would want your insurance to get you a new home rather than pay you the market value of a depreciated home. So, the insurance company wants you to keep it insured for the value of a new home. And that doesn't even consider that the insurance company charges rates based on how much you insure the home for. As for the bank, they may be factoring in appreciation of the land over 20 years. Depending on where you live, the land likely appreciated enough to compensate for any value lost in the home. Finally, I wonder if the bank and insurance co are factoring in all your upgrades. Is it that your home is worth now, with all those upgrades, what the house was worth new, without the upgrades. Your bank and your insurance company may tell you the home hasn’t depreciated, but that does not definitely mean they’re right. First, your insurance company is likely considering “replacement cost” of the home should it be destroyed in a fire or other disaster. In such a case, you would want your insurance to get you a new home rather than pay you the market value of a depreciated home. So, the insurance company wants you to keep it insured for the value of a new home. And that doesn’t even consider that the insurance company charges rates based on how much you insure the home for.

As for the bank, they may be factoring in appreciation of the land over 20 years. Depending on where you live, the land likely appreciated enough to compensate for any value lost in the home.

Finally, I wonder if the bank and insurance co are factoring in all your upgrades. Is it that your home is worth now, with all those upgrades, what the house was worth new, without the upgrades.

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