Great advice Greg. Lot rent is $385 (it was just raised) The park is full of older homes (mostly single wides) and the park itself is well kept (not alot of debris, junk cars etc) My biggest worry is the park because I do not think that someone willing to pay for this home will want to be in this park. Based on what I’ve read from this web site, moving the home would be very difficult, expensive, and I’d run the risk of damaging an older home.
I think I’ll try to option it because I know the owner is desparate (paying lot rent for 1 yr on vacant home).
This is my first deal so be patient. This is a 1968 20X50 (dble wide) 2 br/2 ba. When I went out to look at it, I had no intention of buying since asking price was $11,500 and it was so old. The exterior is faded (needs paint). However,interior is IMMACULATE…new washer, dryer, refrigerator, carpet, etched glass door, fireplace, furniture, stove, floors fixtures, sinks etc. It looks as if it was never lived in. Landscaping also very nice. The owner died and son trying to sell.
The interior is easily worth more than the asking price. Should I:
a) forget about this deal ?
b) negotiate to reduce selling price ?
In other words, is the age of the mobile home that important to me and/or my future buyers. I’m having a hard time because mobile homes with comparable interiors are going for 40K-60K although these homes are newer.
Also the MHP has “older” homes but relatively well maintained. Would this fact be a deterrent to buyers?
The sellers original asking price $25,000 but had to reduce due to his inability to sell. His inability to sell is in part due to prospective buyers inability to obtain financing on the home. If I bought the home, I would sell it and carry the note. I also heard from his son that some buyers looked at the home and liked it but were unhappy with the MHP that it is in.
Posted by Phil Pelletier on October 11, 2003 at 01:27:24:
That is a “seminar” looking for a place to happen. A seminar is where you pay huge money to learn things that you could actually avoid if you listened to the experienced investors on this board. I jumped at the first “deal” I thought I found when I first started. I paid (gulp) $4500 in cash for a 2bed/2bath 1975 singlewide. I LAUGH at myself everytime I even think about it now. I was lucky that I only lost about $600 on that home, but it could have been a disaster. When you get really good, you can sniff out a deal just by reading the sign in the window. You know based on experience when you should walk or talk, and you know just what you can pay based on the local rents in the area. You know what your yield on the investment will be even before you enter the home.
It all starts with learning from your first screw-up. That sounds like an expensive seminar waiting to happen. Offer him $1,000 to take that hunk of junk off his hands. Then sell it for $7500 on a three year note with $1,000 down, and soak up the cashflow.
I just looked at a 1965 Single wide that had the interior completely drywalled interior good
appliances good ect.64x16 in a secluded park with
large trees.Asking $1500.00.Just offering some perspective.
Re: First Deal sounds like there is a buck… - Posted by Greg Meade
Posted by Greg Meade on October 10, 2003 at 06:15:16:
to be made. you don’t tell how much the lot rent is or where this deal is, but older, well kept homes don’t scare me. Have sold a 1972 12 X 60 Palm that was like new also (one owner). Looked at a 1999 General yesterday 28 X 66 i will bid 1k for as it is trashed!!!
kieth, you must know your market…a 1978 singlewide just sold in a Santa Cruz MHP for 390k as it was rent controlled and on the ocean. If you want to hedge your bet a bit why not option the unit for 60 days and try to market with 6-8k down and hefty payments. If you can do this, pull trigger on option and start counting your money and good job. If not, you are out 1k or so for this option…a very cheap education! Good Luck!