first time buyer

[Jennifer]

Hello everyone!

I have just discovered this forum and I have to say this is the most info I have been able to round up on the pros and cons of MH ownership. I have been especially interested in the threads posted by Dana and reponses by the other So Cal owners. I have to say that I to have always had the same judgements regarding MH parks that Dana wrote about back in October. My situation seems to be similar in that I to am wondering if buying a MH in a park in South Orange County would be right for me, or if I should just buy a tiny condo for now. According to an on-line gage (how much can you afford) I can't afford more than about $85000. I currently rent and absolutely hate it. I am a pet person and it is difficult to find a rental. Also, I want that tax writeoff!
I have pretty much decided that MH ownership is what I can do right now and understand that it probably wouldn't be feasible to sell anytime soon. My questions include: How to go about researching parks and what to look out for? Would it be wiser to buy a MH 2-3 years old or new? What should reasonable space rent run?

Any guidance would be most appreciated.

[Ramb37 (old ron)]

Regarding MH Parks in S. Orange County, CA, try your local yellow pages under Mobile Home Parks. Also check with CA Manf. Hsing. Institute at: http://www.cmhi.org/

California Manufactured Housing Institute
10630 Town Center Drive, Suite 120
Rancho Cucamonga, CA 91730

(909) 987-2599

There are several things to consider when buying a MH to place on a rented lot;
1.) Most important is how resale value will hold up in your area, Southern CA. It is an area of the country where some appreciation might be expected, BUT it depends on the quality of the MH, MH Park, value of other homes in the Park, etc. It generally takes longer to resell a MH on rented land than when the same home is placed on its own land. (In most areas of the country MH on rented land depreciate in value.)

Visit several parks before you visit MH dealers. Inquire about lot rent (probably $500 to $600 per month in your area), utilities, resale values, etc. Also get a copy of any lease papers you would have to sign. These will list the rules of the park. It will tell who is responsible for landscape maintenance, what you can plant in the way of flowers, bushes, etc. Check on cable TV access. Can you have satellite dish on your home. Their policy on having PETS. (Some Parks allow no or only SMALL pets. Small determined by pet weight where dogs are concerned.)

What are the park standards for all MH's moving into the park. Are shingled roof and vinyl siding a requirement on the homes. Are decks mandatory, etc. Other things to look for are how the utililities in the park are furnished and cost of same.
Who picks up trash and the cost.

Try to make an apples to apples comparison between the three options you are considering. e.g. Total your current rent plus any utilities; Total your monthly payment on a small condo plus utilities PLUS condo monthly fees for maintenance; Total your future MH (visit several dealers and look at new homes, not used) monthly payment plus utililities PLUS lot rent. Compare the monthly totals. There are other things to compare, including down payment costs, etc. In general, you will need to have a brief budget to see which option is the best, financially, for you.

With the MH on rented land you will pay a higher interest rate to buy a MH. Probably in the 10% or higher area. MH on rented land is personal property, not real estate, hence lenders charge higher rates.

The above represent my opinions only and you must make your own decision based on your own research.

[Gayle Linke]

And remember, you only get the tax write off on your federal income taxes if you have enough deductions to itemize. I have seen more than one proud new MH owner bring me their 1098 mortgage interest form and be crestfallen when that was their only deduction and it was less than the standard deduction. Please check with a local tax professional about your state and local issues.

[Jennifer]

Thank you for the advice. I will sit down and make a list of the info I will need from the different sources to make the comparisons. I will also run a sample tax return next year to see if the interest write-off will be worth it or not. I won't be moving until October but I want to know all that I can before the actual time comes to look for a home. Thank you again for the great starting point.

[Sandy]

Hi Jennifer,
I am the other southern California person who was responding to Dana's post. I live in a park in Torrance and I really love it. I am 34 years old and realistically I know that we can't afford a regular site built home in this area. We hated renting and this was a great alternative for us. We have lived in our home less then a year so I am not sure of the tax write off situation listed above. My friend has a manufactured in Rancho Dominquez and get the tax deduction. Our park charges $650.00 a month rent. We pay about $11.00 on top of that for trash and sewer. Our water is included with the rent and we are responsibe for our landscaping. Because our place is mostly gas we are saving about $50 in electricity per month. We used to pay about $80 a month for electric and our electric now (including A/C and forced heat) is about $34 for electric and $12 for gas. That helps. I don't plan I selling my place anytime soon or ever maybe so the depreciation is not a huge concern right now. We had to pay $4,500 in taxes last year cause we had nothing to deduct. Plus our rent was going stricting in someone elses pocket at least this is my house!
Sandy