Posted by Stacy (AZ) on March 23, 2000 at 16:20:28:
The MH is made by Redman Homes, and the model is the Kirkwood. It’s a single-wide, but I don’t know the year. The yard and the home are in perfect shape, and appear brand new, but I know the owners repainted and re-carpeted.
The “subdivision” is on the side of a mountain, in the heart of Phoenix. It was divided into about 500 separate single-wide lots. Some of the owners own 2 or three lots in their parcels, and have double-wides on the lots.
This one is one single-wide lot. The neighborhood contains 50% nice MHs, but there are some pretty old and shappy ones there sprinkled throughout. This one has a great view out of the back yard of Phoenix, but then again, you can see several crappy MHs and junky yards from there, too.
The comps show the highest price paid recently was $72,350 for a nice double-wide and 2 lots. A couple of other double-wides were sold for $63,000, $42,500 (older model). The single-wide next door to this one sold for $50,000, and is a larger but older model.
She was getting $550/month rent. I’d love to buy and hold this beast, but I’m not sure I could buy it low enough for it to cash flow. Seems like a L/O or owner finance candidate.
Any advice for a MH with land? - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 22, 2000 at 17:33:12:
I’ve read Lonnie’s books, so I think I’ve got a pretty good understanding of the “Lonnie Deal”. But, this one doesn’t fit the scenario.
I focus on SFR investing, but I had a call from a motivated seller who owns a lot and MH. It’s not a MH park, per se, but all the surrounding lots have MHs on them. The losts are definately MH-sized lots, and the MH owners also own the land.
I’m not even sure if this is really a MH or a “manufactured home”…it has a wood exterior but is set on the lot like a mobile home. The surrounding homes are definately MH’s though. Shows you how much I don’t know about this side of REI.
Anyway, I’m trying to determine FMV as if this is a SFR, and I’m finding the recent sales numbers are just all over the map. Some of the older junky MHs sold for a much smaller amount than the newer nicer ones. No surprise, but this is so different from SFR comps, that I’m sure I shouldn’t be using the same methods. How do I determine FMV…there’s nothing to compare it to?!
The MH is in almost perfect shape, inside and out, with new carpet and paint, etc. The seller is having trouble selling, and wants to put the money into a different investment. He’s to the point of calling me and asking me to just make an offer, “hopefully in the 60s.” Seller says he has three buyers that wanted to buy it at $65K, but wanted him to carry financing. He wants to be cashed out.
I’d try to just low-ball him, but I have no idea where to start. If he counters, how will I know what my limit is?
Re: Any advice for a MH with land? - Posted by Nancy Cason
Posted by Nancy Cason on March 22, 2000 at 20:07:37:
Stacy,
Is this a double wide? Like 24 ft wide? You need to know the make, model, and year of manufacture.
I own several mobile homes on one acre out in the county. Each is a singlewide mobile home like 14 x 60, 2 bedrooms and one bath. I did not pay over $20,000 for the home and the lot, of course the homes were older and I had to fix up etc. But they make great rentals and some day I can scrap the mobile home and have a one acre lot. My initial investment has been paid off in 5-6 years on each mobile home with lot.
So the idea of a mobile home and lot is not bad and can definitely make you money. But I am having trouble visualizing the area you are discussing.
How big are the lots, How does the neighborhood look to you? What would you do with it, flip and cash out, or owner finance, or rent? All will work.
I?m sorry I don?t feel as though I have been much help