Placing a manufactured home on a private lot - good investment?

First off, I'm talking about a manufactured home - NOT mobile! Get it straight before you confuse the two. What will my manufactured look like? http://www.idealmfghomes.com/LandPhotos/...

I have not bought it yet but am just planning. Now, I own a private (undeveloped lot) that has an ocean view. Thus, it's located in a urban/coastal area (NOT rural) - just in case you guys conjure up images of a trailer park folks living in the rural country side.

The cost of the home and site development will cost me about $270K. However, based on a lending company, they appraised the manufactured on my permanent property to be at least $400K.

The problem is though, 5 years down the road, will this be a good investment? People tell me it will be hard to refinance or sell my home - but I ask why? Isn't it like a single-family home now that it's permanently attached on a concrete foundation?

Or, will I be better off investing $300K in an old stick-built home?

James, before you buy this thing you need to make sure your city will allow you to put it up in that neighborhood. Most cities would not allow this. YOU might not think it is the same thing as a trailer, but the building department does. The real estate board does as well, it will be listed separately from houses in the MLS, all trailers are called "manufactured homes" there. The only buyers will be people specifically looking for a trailer/mobile home/manufactured/pre-fabricated ----whatever you feel comfortable calling them. They are not legally SFH - single family homes - and do not fall under the same zoning as single family family homes, nor the same mortgages.

5 years from now you will not have too much trouble selling this. They do not depreciate to worthlessness for another 15 years. The big problem is getting a loan for that much for something that will be worth nothing after the loan is paid off.

But, as I said at first, your biggest challenge will be getting a permit to move it in in the first place. Regular residential zoning does NOT include trailers, no matter what you want to call them.

Ask a local real estate person what they think. Some of that stuff could depend a lot on your location.

First of all, you don't have the terms straight yourself.

A MANUFACTURED home IS a mobile home, which is the exact same thing as a trailer.

Always a poor investment.

A MODULAR home is home built in a factory, and then brought out to the homesite in sections and assembled on a permanent foundation in a day. They are made of the same materials as a stick-built home.

They appraise the same as stick-built homes, however, banks do require appraisers to notate that it's a modular on the appraisal, and the type of construction still has a 'stigma' to it, that makes them difficult to sell.

It is NOT hard to refinance...it can be more difficult to sell. People that are handing you that hogwash obviously has no underwriting experience in how banks treat modular homes...THEY ARE NO DIFFERENT than stick built for lending purposes!

I see no reason why it would not be a good deal. You are correct that mobiles depreciate--manufactured modular homes don't. In fact, a manufactured SHOULD have some tremendous advantages--stricter codes frequently, more precise building as it's not on site with questionable labor and sometimes iffy materials, etc. I'd say make sure you do things that add to resale and keep your prices low, etc. and you'll have a major bargain on your hands.

Resale issues, etc:

people like spacious kitchens

get flooring that is not crap--preferably cork, hardwood, tile, something that lasts and has value

get quality cabinets--cheap ones develop problems within about 5 years and are a total waste

do things like put in a whole house water pressure regulator (why have plumbing problems and this is your WATER source's issue, not your manufacturer's); ditto a whole house surge protector to decrease fried electronics; consider a whole house water filtration system to help spare your plumbing as well

make it energy efficient

make it low maintenance inside and out

and really think about making it ADA accessible--if you get someone who knows what he's talking about--you will be glad you did. Two-stories can be PREPPED to be accessible by making sure that a lower an upper closet that aren't going to make or break the house are aligned so a wheelchair bound person could install a LEV without breaking the bank:
http://www.levelevator.com/

If you do all of that, you will be able to vastly increase your ability to sell your home in ANY kind of market for a reasonable price because people don't bother to do these things normally and they're all outstanding ideas as it broadens your market beyond the nonsense others whine about like color schemes or travertine v marble.

ENJOY your home!

BTW, one final caveat: check your zoning:
"Most developments allow modular homes. Some do not, but in those cases the restrictions seem to have been imposed because of an ongoing confusion about the differences between modular homes and manufactured homes."
http://homebuying.about.com/cs/modulared...
Sometimes the term prefabricated is used as well.

Like Mary B said a manufactured home is a mobile home is a trailer home. !!!All have a steel frame (look under the home) and a vin#(look on the hitch tongue or under the kitchen sink)!!!!!. It is important to understand this. It is what it is no matter what the sells person tells you. What matters is what the bank, and insurance companies call it. You will find lending companies owned by or own manufactured home building companies. Make sure you talk with a few different independent banks. There is nothing wrong with the new manufactured, trailers, mobile homes they are built well and look great but are different.

Again like May B said there are Modular homes which are stick built just like a site built home but in another location and than transported to your area. They are mass produced and built in a climate controlled environment. They are well built, better than many site built homes. They may or may not be less than a site built home.

There is a lot of bad info when it comes to this subject. Make sure you do your home work.

There is a market for each type of home, depending on the needs of the buyer.

You said "The cost of the home and site development will cost me about $270K." That is alot of money for a manufactured aka trailer. Must be one hell of a foundation. You said"Or, will I be better off investing $300K in an old stick-built home?" If you mean just an extra 30k to build on site vs a manufactured, go site built no question about that.