Before you can begin to invest in mobile homes, you must first understand your customer. To this giant market, a mobile home is the only form of detached housing that they will ever be able to afford.S. Unlike an apartment, the customer has nobody banging on their walls or ceiling. And as America's economy continues to decline, this number grows. You can obtain spectacular returns and -- equally important -- provide nice housing to hard-working Americans who need it badly.

The other key is the quality of life that a mobile home can provide the resident as compared to other inexpensive housing options. The important fundamental - and the one that needs to be your guide in every decision you make - is to stick with the business model of affordable housing. The true crime center of most cities today are the lower-income apartment developments, with drug dealers standing out in front and prostitutes, gangs and drug addicts living inside. Get in now, on the ground floor. The other cause of the giant demand is the poor quality of traditional apartment offerings. As a result, a successful investor in mobile homes will not focus on providing more than the basics. is in a recession, you would never know it if you run an ad for a mobile home for sale or rent.S. Leveling a mobile home costs in the hundreds compared to a stick-built home's thousands.There are over 60,000,000 Americans with household incomes under $20,000 per year. Basically, mobile homes allow residents to have self-respect, and a "neighborhood" feel that supports a healthy lifestyle. This gives you much more freedom in renovations, as virtually all internal walls are simply cosmetic. These customers are not expecting fine carpets, hardwood floors, upscale cabinetry. If you earn $10 per hour or less, you are in this segment. There are so slabs and no piers - nothing expensive to settle or crack. Why all the calls? Because there is a huge, unsatisfied demand for affordable housing.

Conclusion

Affordable housing is going to be one of the key investment sectors in real estate in the coming years. But the American obsession with upscale bathrooms and kitchens has no place in affordable housing.

Why Mobile Homes Are Easy To Renovate

Mobile homes have some unusual attributes that other forms of housing do not share. And, as a result, the demand for mobile homes has never been higher. You have to construct the monthly payment , including mobile home park lot rent, to not exceed around $500 per month. HUD has controlled the construction standards of mobile homes since the 1970s, with the goal of keeping costs at light steel villa a minimum. One is that they have no permanent foundation. The point is that this market segment is extremely thankful to find something that they can afford, and is not very discriminating on the quality of the product. Essentially, it is easy to sell a mobile home for much more than you paid for it.

Why Mobile Homes Are The Answer to Affordable Housing

Mobile homes are the lowest cost form of detached housing to build. This serves no one, as you are constantly having to clean and re-sell the home and your customers are denied the affordable housing, and long term benefit, that they are searching for. You can buy them relatively cheaply because most people do not want to invest in this asset type. A mobile home's foundation is nothing more than a steel chassis, to which the wooden floor is attached. A mobile home is structurally similar to a shoe box - the walls and roof are the only components needed to make it stand up. They have a yard. Have you seen an affordable housing apartment complex recently? Anyone who thinks that mobile home parks are unattractive has not visited apartments. This makes it easy to locate and repair the water, sewer and electric pipes and lines. This is a giant market, and one that you will be hearing a lot more about in the future. All utilities run in a common "trough" as opposed to the myriad of wires and pipes in a stick-built home.

And before you think that this customer is different than you and me, look around you.

An Unbelievable Amount of Demand

If the U. But that's not the whole story. They are looking for basic shelter - literally a roof over their head, a solid floor, running water and sewer, and heat in the winter. If you place the consumer in a position of having a bigger monthly obligation than they can afford - as was just demonstrated in the sub-prime mortgage meltdown - you will end up in endless defaults. Almost everyone who works at the grocery store, McDonald's - everywhere you go - earns in this range. It costs less than $30 per square foot to build a mobile home, as opposed to around $100 for a stick-built home. A mobile home that you buy and renovate for $8,000 can be sold for $15,000 and a home that costs $12,000 can be sold for $30,000. And used homes often sell in the area of $10 to $15 per square foot. In fact, most cities now view aging apartment complexes as their prefab warehouse1 problem - not trailer parks.

One of the most unusual components of a mobile home is # the fact that none of the walls are load-bearing. At a mobile home park in Pueblo, Colorado recently, the number of calls exceeded 150 in one week.




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Healthy Numbers

Mobile homes are an attractive investment due to very attractive numbers. in 2010 was around $1,030 per month. They can have a pet. Even in a small market, you should receive 30 to 50 calls a week in response to your ad. This is a horrible environment for any family or individual to live in, and many buyers and renters of mobile homes are fleeing from these terrible situations. At the same time, there is a huge supply/demand gap, so you can price them high without much competition. And that is a giant pool of jobs in America today. If there's been a way to shave costs, it's been done. At the same time, the average cost of an apartment in the U. That is not to say that the home should not be clean and attractive. This is what the customer can afford. For those families with household incomes under $20,000 per year - using the government's own ratio of housing cost to income of 33% - their housing budget is around $500 per month