House-like Mobile Homes

Say the words ' mobile home ' and right away eyes glaze over.  They bring images of spongy floors, plastic tubs and loud neighbors.

Yet mobile homes (or ' manufactured homes ' as they came to be called after HUD stepped in, in 1976, to regulate their construction) actually offer the easiest, most flexible, least complicated solution to rapid downsizing.  And the options are endless.

Those options include:

• identifying a target location and finding an available unit there
• purchasing land and placing a new unit on it
• working with a developer who sells a combined package of property and unit

The key is to remember that the focus of your life is shifting from 'castle building' to 'freedom finding' -- a total shift in priorities. 

What most manufactured home 'converts' will tell you after making the shift is how free they feel.

Just take the story of Billy and Akaisha Kaderli:  check out their story here.

Industry Definitions for the Uninitiated: Manufactured, Modular or Mobile Home 

Probably the clearest definition -- or differentiation -- is provided by NADA (National Automobile Dealers Association).  Just click on the 'Manufactured Homes' tab at the top of that page:

And what is a trailer?  An expression that has survived as a result of close-mindedness, lack of knowledge ... and lack of creative vision!

Owning the Land: A Major Consideration

The decision to own the land on which a manufactured home sits, or not, is a very personal one.  It is not a requirement. 

The advantage of owning the land? 

You can never be asked to move. (Moving a manufactured home is a difficult proposition, but not impossible.  You've probably seen them being moved down the highway, slowly.  In fact you've probably been caught behind a moving convoy on a winding road somewhere ...).  The amount of autonomy you have in that ownership will depend on whether you are on a totally separate piece of private land, or if you own the lot under your unit as part of a park.  Depends also on how much autonomy you want.

The disadvantage of owning the land? 

• You will have to pay property taxes
• you will have more of your money tied up in a fixed asset
• you take on many of the chores of regular home ownership 
• you may even have to deal with an association to manage the common areas.

And what does it mean if you don't own the land?  Well, your home will be located in a park, where the property is owned by the park owner/management.  And the freedom is marvelous:  water and sewer may be metered, or not, but the park worries about getting it to and from your home.  Light and phone are direct relationships between you and the utility providers.  Roads and common areas are not your problem.  And particularly in 55+ parks, since most people have similar priorities, it's easy to find a neighbor willing to keep watch over your place when you head off on trips to see the grandkids ... or to snorkel in Belize!

The Price Tag for Manufactured Homes ?

Prices depend upon many factors.  In the case of new homes, size, floor plans and features will cause the price to range from $15,000 to $100,000.

On older units, the cost is also affected by wear-and-tear, build-outs and extensions (everyone needs a Florida room ...), as well as location (an issue, because it is unlikely you will purchase an existing unit in order to move it elsewhere).

Again, NADA is an excellent resource in assessing the value of existing units.  This link leads to an interactive form that can be used assess the value of a particular home.

A House-like Hybrid Solution

A manufactured home, no matter how old, can provide the framework for a 'hybrid' solution.  Let us give you an example. 

A model '1973 Mercury' mobile home found beside a small lake in South Florida in early 2002 was purchased for $20,000.  It was within a park, on a leased 50x75-foot lot.  Monthly land rent was $375 (today up to $425). 

The new owners virtually gutted the unit, tore out non-loadbearing walls and rebuilt it from the floor up ... and from the outer shell in ... exactly like a standard house.  All new electric and copper plumbing.  All dry-walled: walls and ceilings.  New windows.  New sub-flooring and Pergo throughout, except for tiled baths.  All fixtures and appliances purchased from 'big box' home improvement stores, nothing from specialized manufactured home suppliers.

Most of the work was done by the owners, except for licensed tradesmen (plumbers, electricians, etc.).  Total cost of renovating?  $30,000 plus their own time, aches and pains.

Today, for $50,000 they have a 1,000-sq-ft home as nice as the one they sold for 8 times as much, before downsizing.  In the evening they sit sipping cocktails on the deck overlooking the little lake, or on the side deck under the massive banyan tree, listening to the natural stone waterfall they installed.

Their operating costs are:  $425 per month for land rent; $115 per month for electric (a Florida kWh is expensive); $25 per month for water; $1,500 per year for homeowners and hurricane insurance [Note: coverage is limited to $25,000 by Florida insurance commission ruling], and NO PROPERTY TAX.  Oh yes, because it's a double unit, the owners have to pay the Department of Motor Vehicles for two registrations:  a total of $64.50 per year!

Resources

Consumers Union (publisher of Consumer Reports) offers excellent information it is Buying Guide.

A website called Manufactured Housing Global Network provides vast information on its portal.

NADA publishes a guide on How to Buy a Manufactured Home.

Some More Reading

Do you know how much property tax is charged on a mobile home?  [Answer: less than a tankful of gas!]
Our email newsletter is full of such tidbits...