3 MH Packages - Posted by Jim

Posted by John Merchant on August 11, 2005 at 04:39:25:

Suggest you might offer on these, one at a time, offering your $50-100,000 deal for total buyout…with seller paying all costs.

You can’t know sellers motivations or urgency to sell until you make an offer and get their responses.

Answers to your specific questions:

A. MHs on their own land are appraised & tax assessed as RE, so RE comps will show you what similar property is selling and listing for.

B. This MH is still personalty and hasn’t been converted to RE if its title as MH is still current and is being renewed…your state & county will have a procedure for surrendering the title and making it part of the RE; however you might not want to do that because you could prefer to sell the MH on terms, but keep and rent the land. Many MH/Lonnie dealers do this.

C. Loans for MHs w land are iffy, spotty and must be shopped for. Some banks around my home do it, on newer MHs, most won’t…the land has value but not every bank will do land loans either.

D. MHs can last a long time if they survvive their occupants’ “care”. I’ve seen a 40’s trailer still being lived in.

As far as really looking at MHs as good lendable collateral, on their own, I’d say forget it…I know no lenders who’d even glance at this deal…just like old cars. What lender would loan on 80’s cars today?

It’s a different story, of course, if you own and are selling on your note & terms.

Remember, we buy trailers and sell homes.


3 MH Packages - Posted by Jim

Posted by Jim on August 11, 2005 at 02:15:59:

I am new to MH’s. I read Deals on Wheels several years ago and then moved overseas so now back and ready to try some investing. Here’s what I found yesterday and my question below. There are 3 deals here, I have not been out to see them yet:

  1. 1 Acre with 4 MH’s. 3 are currently rented for a total income of $1250/Mo. and the 4th is recently vacant and just need tenant for around $450. Package deal offered on these 4 MH’s plus 1 Acre for $123,000 total.

  2. 2 Acres with 9 MH’s, all in rentable condition, 7 are currently rented. Total income from these 7 is $3,150/Mo. and other 2 would bring $450 each when rented. Package deal is $240,000 for all 9 MH’s and 2 Acres.

  3. 4 MH’s, (2 are in parks with a lot fee of $75 each, 1 is on 1/4 Acre and 1 is on a 1/2 Acre). All 4 are currently rented for a total income of $2525/Mo. One is a HUD rental. Total package is $144,500 for the 4 MH’s with 1/4 Acre and 1/2 Acre included.

My questions are as follows:
a) How do I find the value of mobile homes?

b) Are there taxes on MH’s like Real Estate? (The owner of #3 above said she only pays taxes on the 1/4 & 1/2 land and only yearly decals on the MH’s)

c) Is there financing available for MH’s similar to financing for standard real estate or are the terms, ie. interest rates and length of loans different?

d) How long to MH’s typically last in years? I know the homes above are from the 1980’s & 1990’s.

e) Does it make sense to do Interest Only loans on MH’s? I have an Interest Only loan on my residence here in Florida but the appreciation has been going crazy so I am not concerned.

f) My understanding is MH’s depreciate so where is the line on whether it makes sense to purchase a MH given its age and possible need for a loan.

I have about $50,000 cash and $100,000 Line of Credit available to use but would prefer to spread this money across as many deals as I can and borrow the remainder needed. (Thoughts??)

Thanks for reading, if you made it this far. I would appreciate any constructive feedback.