the problem was that all the floor had to be ripped out and replaced drywall was insisted on and new carpet. plus vinal siding. this one is no longer mobil. all fixtures and doors,(old doors were not trash and are going into another home in a few weeks. couldn’t find a deal to save any. all of the hardware stores told me no discount if im not a contractor. except LOWES. but nothing anywere on lumber or drywall. also an aditional shower has been installed.
I have found a great deal on a lot/home that was foreclosed on. The bank has been losing money on it each year- I went to see it and it’s HURTING. I have never done a rehab before, and I don’t know if this one can make it back. It might be better to just clear the lot and put a decent, used manufactured home on there and flip it.
The property-
A nice size lot with an empty pool. It’s a 3/2 (maybe a 4/2) older manufactured home. 2 Houses down is one listing for $131k, and across the street is one for over $90k (sold). I don’t know what manufactured homes cost, or what it would cost to clear the old one out of there. Can someone give me an idea of what a ballpark is to clear an old home out (assuming it can’t be rehabbed), and put a new one on there?
About the rehab- it’s pretty beat up, needs new carpeting, a few windows, a few days of SERIOUS cleaning- new fixtures all around, wall work (including around the fireplace), some floor repair, and kitchen/stove replacement. No stains on the ceiling and no aparent leaks. Reading the Deals on Wheels book I seem to think that this is possible to rehab- but it might be cheaper to just get a used one (in decent shape) and clear the old one out of there.
I think I could get the bank to let me take it off their hands for about $20k or so. If this was the case, would it be worth it? If someone could give me some ballpark figures I would appreciate it.
Thanks,
-Rat Racer rat_racer@cox.net
Brian, even if you rehab. this older mobile home, you will still have an older mobile home. With the comps of nearby mobile/lot combinations between $90k and $131k I would think it would be wisest to put in a later model used doublewide. I would look for something about 5-10 years old or less and in good condition. I would think people paying this much would expect a nice modern mobile not a fixed up oldtimer.
To avoid moving and disposal costs I would advertise the old mobile for $1,000 as a pullout/fixerupper. I bet someone would pay to take it off your hands.
If your comps are accurate and you could get this for 20K, even if you spent 20K rehabbing it you have a great deal. You could always flip to another investor and make a nice chunk of change.
From the sounds of it, the cost of this rehab would be less than the cost of moving the home. Disposal is an added expense that you would also have to consider.
You may want to consider rehabbing this one. If you think the resale value makes it worth it.
Or you might go ahead and pull it and see if you can’t bring a newer home in (if you are looking to flip this to another buyer).
Gib had a good point, however, I don’t think it possible to actually put $20k into a mobile home rehab. There just isn’t enough to replace. You could by a repo at retail for less.
Honestly, I have done near complete cosmetic exterior and interior, roof repair and cool seal, repaired plumbing, floors and replaced toilets and still did not spend $2,000.
I have spoken with mobile home rehabbers like Greg-VA and ScottS(NC) who have done very, very extensive rehabbing that even included total plumbing replacements and I don’t believe they have spent more than $2,000 in materials. They do the work themselves but even using a handy-man or contracting parts out, you would likely to be hard pressed to go over $3k.
I am interested in anyone who has had different experiences.
This low rehab fee only further enhances Gib’s point that a great purchase price and rehab could be flipped with good profit.
Great- thanks. Yeah, what’s a ballpark on moving and disposing of a manufactured home like that? If I were to clear it out and bring in a new one (for a flip- which is what I want to do)- what’s the cost of a home going for? should I fill in the pool, or, try to bring it back as well?
Thanks
Rat Racer
Thanks Tony, that really was part of my point. I was just trying to point to the profit potential. As for actual costs, I would agree with 3K being near the most you would probably spend UNLESS you threw having it re-shingled into the mix. Count on another 2-3K for that.
Moving costs are going to vary by location, distance to move and dumping fees. It would be wrong for me to even guess.
I do however, suggest you call local movers and find out from them. Get an estimate before going into the deal. This way you will have specific numbers to deal with for this particular deal.
Buying homes too will vary but your movers may have some ideas.
i am 5k into a job right now but i almost gutted it. and since its in a nice area and the buyer is putting up the repair money i can’t complain, the most expensive thing so far is carpet, the carpet stores here shread old carpet that usually could be gotten cheep. 1400 is my best estimate so far, but i am still shopping. hoping to give 500. the old carpet isnt ruined but it is stained. i read somewere about redieing it. but i can’t find it, anyone know were to look.
Yeah- I just have no idea what it would cost for a rehab- I am thankful for the eye opener and encouragement! I went back today, and I don’t think it’s THAT BAD as I had first thought. Once I yank the floors, throw some paint and appliances- it should be good condition. Any suggestions on the pool? It’s dried up, but I didn’t notice any cracks in it. I’m sure it will need some repair (motor, etc). If anyone is interested and experienced, I have pictures of the thing I posted on a web page- just let me know.
Thanks for the help!
Rat Racer
Brad, your repair cost of $5k staggered me. Even paying retail and replacing carpet, panelling, flooring, plumbing, painting and doors I have seen costs of $1,500 or less.
Not sure how you got so much into it.
But as for carpet, I have been semi-fortunate to be able to use cheap carpet remnant places. Usually $300-$500 to replace all the carpeting. Pad might run a few bucks too.
Blane wrote a post some time back about a park manager not approving of the color of the new carpet he put in so he dyed it. Maybe you can find the post or he will chime in. (talk about a tough PM to deal with).