Guess I need to brush up on my state abbreviations!
I too would be leary of realying on seller…(s)he would have done it when they lived there if they were motivated. $500 in materials costs seems reasonable, but labor is always going to make or break a budget, oftentimes the materials are the inexpensive part.
The good news is I am far from the only person who owns a handyman service and can get things done for very reasonable rates, and usually very promptly. Check in your phone book or as the PM or neighbors for recommendations on who they have used. You want to have someone who comes recommended, as it is all to easy to start a business like this, and there is no test of how much one really knows…
First deal? or should I pass it up? - Posted by Sonia (ID)
Posted by Sonia (ID) on September 13, 2003 at 12:13:01:
I had my first meeting with a park manager yesterday (who, by the way, was very nice and friendly and didn’t bite!) And we talked about mhs for sale in her park. I told her I was looking for a fixer to resell, and she pointed me to one that I could get for 2 months back lot rent-- $440. Well, I looked at it, and it’s pretty trashed. My gut says ‘pass it up’ – but tell me what you think.
Its a 1961, 3+1. One bedroom has been converted into a laundry room, so it’s really a 2bed. Several ceiling panels are missing, all carpeting and lino needs to be replaced, 2 small windows are missing, several roof leaks including one under a partial roof-over with corrugated metal that leaks, some missing wall paneling and some patches of drywall over parts, The kitchen is only half there–one countertop that’s bad, over patched together home-built cabinets with doors falling off.
The owner lives in the park, and can’t afford to pay double space rent, and is desparate to get rid of it. He says he estimates he could fix it up for $500.
I do have a list of 2 potential buyers that might fit this if they pass the park.
One more question, by the way, there’s only 3 mhs for sale in this park of 70, and one empty space. This seems to be fairly typical of the older parks in my area–what does that say about the market here? Will that drive prices up?
Re: I must be listening to doc’s advise … - Posted by Greg Meade
Posted by Greg Meade on September 13, 2003 at 14:27:28:
too much, but Sonia, why do you need to put Any of your money into this deal. If owner will give you 30 days option on home for 1 month lot rent (at end of 30 days) that leaves you plenty of time to advertise a “handyman Special”. Your ad could read HANDY PERSON SPECIAL no Bank needed!10 yada yada yada. 500 down and 200 per month for 24 months and home is yours with zero interest for the 24 months. This would give you a humongous yield and if you could get a break on past lot rent not cost you a dime. How could anyone argue with 200 per month for 2 years with NO money out-of -pocket! PM thrilled, lot rent coming in again on a unit staying in the park. In FL it is possible to get pms to forgive lot rent if the home stays…too many homes getting yanked and not being replaced! Because the pm and owner need to sell, you do not have to buy. Be honest and open…maybe start running the ad now. Good luck…sounds like a winner.
Sonia,
Is the owner offering to fix it for $500 or just guessing. If you could make the repairs yourself at least of chunk of them, $500 sounds reasonable. If you are going to hire the whole thing out you could easy go over that. Make a list of what you can do vs. what you would have to hire out. Figure out materials for your part, add some to that for the stuff you forget, and then see where you are. Then figure out what you would really have it it. Sounds to me like if it is worth $4500 fixed then its doable. But make sure that number is accurate. Are they selling for that or listed for that or what?
Where in Indiana are you. It possible we could make a deal on the rehab if you are not able to go it alone. I am in Illinois.
PS can you negotiate free lot rent or storage rent while you rehab it?
Posted by Sonia (ID) on September 14, 2003 at 24:03:40:
Let me get this right, If I do this, I should do a option to buy with the current seller, then I find a buyer, exercise my option, and then sell to my buyer? Is that what you mean?
I may try that. I know I don’t want to put a lot of $$ into this one.
Re: I must be listening to doc’s advise … - Posted by Sonia (ID)
Posted by Sonia (ID) on September 13, 2003 at 17:44:58:
Do you have a contract for Option to Purchase that you could email to me? I’m considering this possibility. I need to research this a little more in the archives.
Re: First deal? or should I pass it up? - Posted by Sonia (ID)
Posted by Sonia (ID) on September 13, 2003 at 17:40:22:
Unfortunately, I’m in Idaho–not INdiana. Seller estimates $500 materials cost, and has offered to help with repairs–but I wouldn’t want to be relying on that. $4500 is assessed tax value, and the pm says that it would sell for that if fixed up.
Re: I must be listening to doc’s advise … - Posted by Greg Meade
Posted by Greg Meade on September 13, 2003 at 18:39:12:
sonia, I have only used Exclusive Options to Purchase Vacant Land. this has this at the header (bold)and below gives the terms of the option, the option amount($$$)and date the option expires( if not triggered) It goes on to give parcel # and places for both buyer and seller sign and date and fill in contact numbers. I used a Title company as contact point to pull the trigger on my options. I would send you a copy, but my computer was virus infected and i still don’t have things back they were b4 i System Restored. My road runner, scanner, digital camera all have to be reconfigured. UGH!
I pulled the trigger on one option that was hand written on the back of one of Ernests net leases! Worked fine. For added protection, have notarized. Got my form for this from nolopress.com. Very nice site! hopefully someone else can e-mail you a blank!
Sonia, you are helping two people out of a jam, whatever you do, try not to alienate the pm. If you have to anger anyone, make it the deadbeat. Try to minimize your exposure while maximizing your $$$$. The pm is worth 200 deadbeats…she can give you all the work you need! Ask her about filling her empty spot with a “must be moved” mobile…maybe share expense of transpo. Good Luck!