How old is old when dealing with MHs - Posted by Tim_AZ

Posted by Dirk Roach on May 09, 1999 at 12:06:40:

Hi Tim,
SOunds like your moving right along.
In my market (San Diego area) I have run across the same thing, in regards to age and various upgrading by most parks.
However when you get a couple of parks to work in you’ll do just fine.
Okay your post also brings up an interesting point which I have observed in many people and books and courses and such.
What that observation is that people do not tailer these varrious investment stratigies to their respective markets. When reading these matrials remember that most often the data collected is subject to a particular market. And thus you will want to adjust your numbers accordingly.
Tim, it sounds as if your learning your market, which is paramount for success in any RE endevor really (heck in any business endevor).
Remember what Lonnie says this is what works for him and his business where he is at.
Now where I am at the numbers are different. I live in generally a more expensive market. Which is to say that people are used to paying more for a roof. However at the same time most people would cringe to know that the average space rent out here is also higher. So it pretty much balances out.
As for age. In my market I have found the same to be true as you. When I refer to an old mobile home it is useally in the early 70’s. “OLD” (in caps) in my market is one in the early 60’s (which I have sound and flip a few of these for pretty good profit). And “Man I can’t beleive how old that thing is” is in the early 50’s. I have only flipped two of these. Still made profit though.
Hope this helps,
Dirk

How old is old when dealing with MHs - Posted by Tim_AZ

Posted by Tim_AZ on May 09, 1999 at 08:48:03:

Well, I’ve been riding the speed bumps and talking to park managers, giving out my business cards, etc. I ran a Lonnie “test” ad in last Sundays paper, and got about 8 responses, so that builds a customer database.

Lonnies book says you should deal with homes that are 10-20 years old, and in the $4000-$6000 price range. I am finding in my area (AZ) the only homes that are in that price range are 20-25 years old, and usually the homes made in the 80’s are $15-$25k. Of course, I am talking about asking prices, not what I would actually pay, but I’m just wondering if I would need to pay more and stick with the 80’s models, or try the 70’s models.

Also, most of the parks around here do not accept MHs more than 20 years old. I want to buy MHs to keep in their parks, but most of the park managers are simply trying to get rid of the older ones, no matter how much I can rehab them.

Has anyone else run into this kind of situation?