Re: Mobile homes on Land (long) - Posted by Anne_ND
Posted by Anne_ND on May 31, 2006 at 16:54:43:
Depending on where you live, the fact (or fiction) that “the housing bubble is starting to burst” could well be irrelevant to your market.
I’ve done two land/home deals in the upper midwest. One was 5 acres with a crappy singlewide- I paid $12,900 for it (additional costs for land improvements about $2500), gave away the MH to a couple who were willing to rehab it, who now pay me $350/month to rent the land. This is the classic Lonnie version of the land/home deal, not the more labor-intensive Tony/Scott version, you can find out the difference by going to the bootcamp.
My second land/home deal was 7.5 acres with a 5-bedroom farmhouse, 7 outbuildings that we bought for $24,000. We divided the lot and will be putting a newer DW repo on the second lot- this will be a Tony/Scott land/home deal. We have the farmhouse rented out for $450.
Both of these deals were bought severely under market value- the farm’s ARV (repairs cost about $20K) is about $100K, the 5-acre lot is worth about $22K.
Find out what the demand is for housing on land, and what it will rent for. That’ll be your competition. Also find out what the minimum lot size is for a MH- where I was working it was a 2.5 acre minimum.
As for an area to invest in the sunbelt, Greg Meade, a very sharp guy in FL, says GA is a crazy-mad place for MH investing. I’m hoping he’s right. I’ve never seen a place so full of MHs as Asheville NC, it’s like a fairy-land for MH investors, especially small parks and land/home deals.
I second Tye’s suggestion that you go to the bootcamp in Asheville. It was very helpful to me. If you’re willing to do some deals from a distance you might even find a deal or two while you’re there.
PS- I have no problem with a housing bubble- lots of money will be made when it happens, more than in the past 3-5 years I predict.