Mobile Home Loans

Most people know that mobile homes depreciate in value. This is why there is no major investment in them. However, this is only a half truth. Although mobile homes lose value in parks or rented lots, if you own the mobile homes as well as the land in which they stand, they actually appreciate in value.

In the 14 years I have owned my mobile home, its value has doubled. Although the home has deteriorated (minor problems in the plumbing and the electricals), the land value has risen. I have earned even more by renting out a few rooms in my house.

Let me show you the numbers. This will show you that the return on mobile home investments is far higher than that on traditional homes. Buying a traditional two bedroom house would cost you about $120,000. It would fetch you a rent of $800 per month. On the other hand you can buy a mobile home for $50,000 and get a rent of $500 per month on it. That is more than double the return compared to a traditional home.

As far as long term return from appreciation goes, house rentals have negative cash flow, whereas mobile homes break even(at least) in that department. So, it is time to rethink your investment strategies. You can make money on mobile homes and lots of it!