Posted by Pboone on March 01, 2000 at 20:57:15:
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mh - nothing down - NEED ADVICE - Posted by jim
Posted by jim on March 01, 2000 at 20:47:46:
Have chance to take over payments of 80’ X 14’ 5 year old mh. Just needs to be moved. 293.00 a month for 6 years or 17500.00 payoff. Excellent condition. Would this be worth moving to mh park for rental. No mh back ground.
Difference between theory and real-life - Posted by Jacob
Posted by Jacob on March 02, 2000 at 12:31:34:
Hi Jim,
One big problem many get into when starting out in mh’s is using the same theories that work in single-family homes. There’s only one problem to that, these aren’t sfh’s. Mh’s are giant cars with couches and bedrooms.
$17,500 is a horrible wholesale price, let alone retail. I know it’s only 5 years old, but way out of what you should be looking at.
$295 a month on top of the standard $250-$325 lot rent is alot of money. That’s what my house payment is on a $110,000 2/2 on a double lot. What would you rather have?
Keep in mind that very few parks even allow rented units. If they do, yo may not want to deal in that park anyway. A contract sale could be possible, but you’ll have to spend $3-4000 to move it.
Stick to the simple deals, expecially at first. Contrary to what some might have you believe, there are plenty of them if you know where to look.
Good Luck,
Jacob
Re: mh - nothing down - NEED ADVICE - Posted by Bill K. - FL
Posted by Bill K. - FL on March 02, 2000 at 09:53:42:
Hi Jim,
I hate to turn deals away without giving them serious consideration. This is what we get paid for. IF: 1. You could find a suitable park to place it in. 2. Find Someone you could lease option it to who had the $ in the form of option consideration to cover the moving and setup expenses plus give you a monthly spread 3. Agree to a purchase price several thousand above the existing loan balance at time of purchase. Say in 2-3 years. The deal would be possible with little out of pocket $. If they backed out, you could always sell again. After 6 years you own free and clear, and can sell with terms. In theory you could be making $ on this one home for the next 20 years or more.
David’s right - Posted by Blane (MI)
Posted by Blane (MI) on March 01, 2000 at 21:24:18:
Numbers are too big for a Lonnie Deal. The $17,500 looks like retail price, you need to buy wholesale. The $293 probably wouldn’t even work on a lease/option. Pass on this one, there’s plenty more out there. Keep asking questions and you’ll get plenty of help.
Good luck,
Blane
Re: mh - nothing down - NEED ADVICE - Posted by David S
Posted by David S on March 01, 2000 at 21:18:17:
this is not a Lonnie type deal. The cost to move alone would be in the $2500 range. Try to find a mh that can stay in the park. The 10-20 yr old homes can be purchased for 2-4k on average. These are the deals you can get fantastic yields with.
I’d PASS on this one, even if they paid for the move.
David S
Re: mh - nothing down - NEED ADVICE - Posted by PBoone
Posted by PBoone on March 01, 2000 at 20:56:29:
Have the seller pay for the moving, onced moved then take over payments NOT the mortgage.
Pat
Re: mh - nothing down - NEED ADVICE - Posted by Jim
Posted by Jim on March 03, 2000 at 11:41:47:
Thanks everybody for the advice. I think I will pass on this one.