I'm stuck ! (long message) - Posted by Greg

Posted by David Krulac on June 19, 2000 at 21:00:00:

with one or two mobiles per site. Rent the dirt as Lonnie says.

Issues are zoning are mobiles permitted?

Is there public water and public sewer? here in Pa. a well must be 100 feet from any septic, which makes about a half acre 100x200 as the smallest lot suitable for both a well and a septic. You could squeeze in a slightly smaller lot but not much. Once had a 50x140 lot that got a mobile with a holding tank but thats another story.

some zoning ordinances have minimum dwelling sizes such as 800 to 1100 square feet. This would limit but not eliminate some mobiles.

flood plain, wetland, stream crossing issues would apply.

and of course zoning setback rules.

One zoning ordinance that I reviewed had a provision that permitted double wides on permanent foundations but not single wides.

hth

David Krulac

I’m stuck ! (long message) - Posted by Greg

Posted by Greg on June 14, 2000 at 24:46:39:

Well I’m stuck and I need a little feed back from the experts. I’ve read Lonnie’s book, driven through about 10 parks and only found a few homes for sale and they were around $10K. The homes I found in the $2,000 to $5,000 range all need to be moved.

I talked to the sales manager at a local mobile home dealer. I was checking out the used homes on his lot. He said, if I had the land he could deliver used “trade in” homes to me at a good price. This would keep the home off of his lot.

So, I’m considering buying 5 acres of land for around $15,000, subdividing into 1/2 acre lots, then owner financing the land and the mobile home. I’ll put the land on a separate Contract for Deed with a longer pay out. I’ve owner financed two pieces of land in the past and it’s been a great money maker for us.

Here’s my numbers
Sell 1/2 acre lots for $99 month, sales price $10K, $400 down, @ 12%, for 360 mo
My cost per 1/2 acre lot with improvements would be around $3,500

Then I could bring in the used MHs and do the typical Lonnie deal. I have two relatives wanting to help me purchase the used MHs.

So, if I borrow $35k for the land and improvements my monthly payment would be around $269. When all ten 1/2 acre lots are sold I would then have a positive long-term cash flow on the land of $721 per month for the next 30 years. Plus all of the great short-term income generated from the 10 Lonnie deals.

Sorry for the long message. These numbers are running through my head and I need to get them out! Has any one tried this? Pros and Cons of working with dealers and moving these homes? Any comments or suggestions are appreciated.

Thanks!

Greg
Athens, TX

Re: I’m stuck ! (long message) - Posted by JHyre in Ohio

Posted by JHyre in Ohio on June 15, 2000 at 11:09:22:

I’ve found that managers are more flexible if you agree to vinyl side homes. Costs around $1500, reaises sale price and looks great.

John Hyre

Re: I’m stuck ! (long message) - Posted by Lonnie

Posted by Lonnie on June 14, 2000 at 06:48:16:

Hi Greg,

First, check with your building/zoning to see if you can put used MH’s on the land. If you can, then check out the total cost of turning raw land into a MH lot, ready for a MH. Next, check the total cost of the move and set-up for the home.

Your idea can work, but there’s a lot more involved, (and cost) than you might think. Just be sure to do all your home-work in advance, and before making a commitment. If you’re new to the business, this isn’t the way I would recommend you start. Be careful.

Best wishes,

Lonnie

Another Zoning Issue - Posted by PeteH(NYC)

Posted by PeteH(NYC) on June 16, 2000 at 10:57:57:

You must also make sure the zoning for that parcel allows lots of that size. A piece of land I own is zoned only for lots of 1 acre or bigger unless the entire subdivision is approved by the town.

Been there, done that… - Posted by David Krulac

Posted by David Krulac on June 14, 2000 at 12:20:28:

around here a subdivision plan takes about a year. a mobile home park, defined by state law (Pennsylvania) as more than 2 mobile homes on one tract can take 5 years and usually involve going to court.
Lots and Lots, of Luck, hope you don’t need it.
David Krulac

Which brings up some interesting questions… - Posted by soapymac

Posted by soapymac on June 14, 2000 at 17:39:45:

dealing with an idea I’m trying to develop.

My hypothesis: there may be a scattered number of lots available where ONE MH in good repair could populate the lot, but the lot would not support the physical size of a regular home.

What else should be in the mix besides a zoning OK, satisfactory septic engineering, water, and power?

What am I missing?

Cordially,

Roy MacLean
"soapymac"