Posted by Finance Guy on June 15, 2006 at 09:09:14:
Bill:
This website is for investors and I don’t ever see any of them paying what your thinking. Remember buy wholesale and sell retail. Invest in education is your next step oh and re-read DOW it has all the basics.
To your success:
Don Wilson (OK)
2001 3 br, 2 ba DW, 5 ac. ~$38,000. What to do? - Posted by batpro
Posted by batpro on June 14, 2006 at 22:33:24:
Ok, this seems like a great deal to me but I need some help.
2001 Radco 3 br, 2 bath, 1568 sq. ft. double wide on 5.5 acres. Tax assessed value is $107,800.
It has already been foreclosed upon and is for sale by the bank. It needs a new septic within 2 years (county requirement) and a new well. It does not have a garage.
It is sitting on a class 5 pad, no cement or anchors, with vinyl skirting. The carpets could be replaced and some of the kitchen cabinets have a few problems and look wore, a couple holes in the drywall, other then that everything seems fine.
I suspect I can get this property (DW & land) for $38,000-$43,000 with an offer.
Questions:
What is the best way to make money on this property quickly?
What would you experts do? Resell as is? Rent it? Put $25,000 into it and put in a garage, new septic, well, and carpets? Should I worry about it not being on a cement slab with no anchors? MN state law now requires them for new homes and it is required for new financing.
My main interest is to make money quickly. Any investors.
Any suggestions what others would do with this property to make money?
These newer doubles wides on 5 acres are selling for around $100,000 to $120,000 in this area. The tax assessed value on the house is $75,000 and the land $32,000 = $107,000.
An average rent rate for this would be about $600 per month in this area. Taxes $700 per year.
Please give me your opinions on what you would do? I do not think it will last much longer.
~$38,000. What to do? - Posted by Anne_ND
Posted by Anne_ND on June 15, 2006 at 10:18:43:
I agree with Bill, buy this one.
If you do, I would put in the anchors right away. Forget the concrete pad, not one of my MHs is on a concrete pad. The anchors are good to have.
Anne
What to do? - Posted by Bill W.
Posted by Bill W. on June 15, 2006 at 07:11:14:
I’d buy this one.
Minimum down and payments.
Seems like you have a handle on the price for a new well, septic and garage at 25K. I’d call a company that does the tie-downs and get a price for the required anchors. Put them in so that on resale you are in compliance.
The rent doesn’t seem to be enough to warrant making it a rental. I might consider splitting the unit from the land and sell the unit but lease the land. Then you’ll get two payments- unit payment and land rent. If you do that, you’ll have to deal with the septic and well.(Adjust land rent to cover these payments or have buyer responsible for this and give them a cheaper deal on the unit.)
You might also split the lot into two or more smaller lots if zoning will allow it and put additional units on them.
Before I put 25K into it, I’d try to sell it as-is after cleaning it up. If you expect/hope to make a certain profit and you can make 75-80percent of that number without the work or holding time, take it sooner rather than later.
Either way, I’d try and set the deal so that I could at the minimum resell the unit as-is and get the downpayment and fix up costs back and then carry the balance on a note that I could sell if I wanted, plus the land rent. If I could split it, that would be all profit. If I couldn’t split it, I might reserve part of it for my own use as a storage area, tree farm, etc. If you took 2-3 acres and grew trees on it, it would produce extra income for you.
Re: What to do? - Posted by batpro
Posted by batpro on June 15, 2006 at 08:08:25:
Bill, what do you think the unit would sell for on this web site? Or what is a price that people would jump on to buy at? I believe a home like this new is around $60-70,000? Its a 2001, 3br, 2ba, DW 1565 sq. feet.
http://www.mhbay.com/mobile_homes_for_sale/browse_sale.html
If I get the property for $38,000. Could I get $49,000 for the house alone and move it off?