Single-Wide as Temporary

[Tommy]

We own some property in Western Maryland and are thinking of putting a new single wide on it and selling it to be moved off the property in a few years. We would use it as a country cottage during the next 3-4 years and sell it to go off the property at that time. We plan to sell our existing house in the DC area at that time and build a house somewhere else. One option would be the Western Maryland property, but we want to keep our options open. If we sell a new single wide in about 4 years to be taken off the property, what is the depreciation likely to be? How would this compare to the depreciation on a double wide?

[rmurray]

Short term purchases of new homes to be sold independent of the land will always take a big hit..

Singles will lose less than doubles...if there is a market for used singles in the area...If you finance long term and buy with small down..you are likely to be far upside down..

Because the moving costs are soooo high for doubles they usually lose much more...

Of course...both would have much more resale value than stick built and site built block or brick homes...these would lose FAR more in the same situation..

I say that only to emphasize the fact that you are buying a home....not a camper...temporary placement of any home is very costly..

Have you considered a used single...where someone else has already taken part of that big hit..

[jgn]

Why not look for a pre-owned single since it would not be a permanent home. Like RM said, you would lose on a short term placement but you can find a pre-owned single for a real bargain and lose a lot less.

[Tommy]

Murray, I thought your comment was very good. Thanks. Could you ballpark the kind of loss that moving a single wide could result in (assuming as you did that there is a market for used single wides in our area (Western MD)). Say a new one cost $40,000 and we sold it in very good condition 4 years later.

[Gene]

I did as you are considering with a single-wide. I purchased new in '93 and sold (and financed) in '97). We were fortunate and did alright perhaps due to the area (mobile homes are well accepted here in TN). We lived in the mobile unit while I built our house. My suggestion to you would be to erect a small dwelling (permanent) which you could live in while building and then use it for something else later. I eventually built a two bedroom cabin where the mobile home sat and we use it for guests now and do some nightly rental with it (We're located in the Smoky Mountains near Gatlinburg). Over the next 110 years, the cabin will probably pay for itself.......at any rate, it's appreciating in value, didn't take long to build, and would classify as a mother-in-law housing when we go to sell. So many possibilities. Best wishes for the best project for your area!