I’m 3 hours north of Minneapolis. I am now looking at a 1995 SW 3br, 2ba. 16x80, sellers says $14,000 or take over payments? Anyone taken over payments on a MH and is this a good idea? I’m going to give her a call today. I was just looking at a 1996 for $22,000 so $14,000 seems like a steal on a 95 the same size.
The seller is motivated and I think she owes $14,000. Is it possible for me to ask the bank to discount the mortgage and say give them $9,000 cash?
I recently purchased 2 lots in a small city with city water and sewer already in the lot. I got a steal on this becuase next month the county was going to take it due to unpaid taxes. I only had to pay the back taxes and attorney fees to transfer it, (one of the previous listed owners is dead so I have to do some decree thing with the attorney).
Anyway, I think the city will approve a newer single wide on the lot, I will find out tomorrow otherwise I will have to get a doublewide, which then I will have to much into it the land and house??).
I called on a 1996 16 x 80, 3br, 2 ba in great condition. They were asking $25,000. I offered $18,000 and she couldn’t go that low, said they might go $22,000. They claim two MH dealers want to put it from them at $25,000 and sell it for $29,000.
Does anyone have a spreadsheet put together with average prices and “thats a steal price” columns? size by year
What is a average price for this and what price is a great deal?
Re: Need a 16x80, How do I know what is a good - Posted by Daphne Lowe
Posted by Daphne Lowe on June 15, 2006 at 18:54:05:
I have a hard time believing the wholesale market in MN commands $15-22k for 10 year old homes, but if that is the case, and you’re looking to rent them out (read: you’re responsible for repairs), you might want to consider buying new. I know in the southeast we (dealers) can get them from the factory for that much. But things may be different in your neck of the woods…
Posted by Sam Chevel on June 15, 2006 at 18:42:33:
Price allways depends on the local market. In my market a 1996 that is all ready set up on a rental lot will bring more than a new 2006 that you have to find a place to put it. Why? there are few places left to put a moble home on. But that is South Mississippi where a 3/2 rents for $2,100 per month.
Posted by Dr B. (OH) on June 15, 2006 at 11:53:08:
Last December I paid $300 for a 1994 16 X 80 3/2 repo already set up in a good park. Granted, I had to pay $700 in back taxes, and $274 in back lot rent (negotiated). It needed about $3000 work and I didn’t have the time or help. I sold it for a measley $3500 cash
I’d say that was a good deal for me and for the buyer. She had her brother fix it up in a flash. I saw the excellent workmanship and now have a fabulous handyman. Can’t even begin to put a price on what a great find he has been.
I admire anyone in MN who owns rentals. My real estate doings are located right on the ND/MN border, I have some experience in MN. Depending on where you are in northern MN these prices might help you. I do think you haven’t yet talked to the right sellers- most of my screamin’ deals are referrals from the PMs.
In 2004 I bought a 1991 14x80 from a dealer for $12K and spent about $3600 on moving and set-up. Otherwise home was in immaculate condition. Sold twice, the first time on a note for $24K, got back and then sold again on a note for $18K (unusual circumstances led to me selling so cheap, I’m sure I could have gotten more had I been there in person to sell).
At the same time I bought a 1996 16x80 from the owner for $10K, put in new carpets and repaired some siding and sold for $25K, that buyer is still in place. The seller was the father of the wife who went to jail for running a daycare while her husband sold meth on the side (i.e., motivated).
In 2005 I bought a 1994 16x80 in pretty bad shape for $10K, spend about $7K on it (relevel, bathroom repairs, carpet, new deck) sold it twice, the second time for $26K on a note.
As for land/home deals, I’d rather Lonnie the home and rent the land- lots of people here will tell you otherwise, but when I get the call at 2am from a tenant saying “my furnace is out” I’m outta bed and paying big bucks to get that furnace on ASAP. If it’s a Lonnie buyer, and their furnace goes out, I give them the number of the MH furnace guys who can help them out and then I roll over and go back to sleep. Which would you rather do when it’s -40 outside?
I started with SFHs and really love my Lonnie deals because they are so easy in comparison.
Not sure where you are from ect. But my first reaction to paying 18k for a 96 model home of any sorts is that you are about to start making 10k+ mistakes that can be avoided for a couple hundred bucks.
First things first order deals on wheels by Lonnie Scruggs, then read the post about the MH boot camp above and sign up today. MH’s are a great way to make money but only if you buy them right to start with. Lonnie’s book is $30 and is a step by step primer for how used MH deals are put together, at the boot camp Scott and Tony will show you how to make the most of the land home deals you currently have and how to make it compound quickly in to a mini empire if you so desire.
Spend a few bucks on knowledge before you start jumping into these deals, the money you’ll save will more than pay the small investment.
I realize the boot camp is a great opportunity, based on where I live, I am not sure it would be a great asset to me or if I am better spending on my education into single family homes. I currently have 3 SFH rentals, with 2 more offers pending at the moment. I got turned off MH’s a few years ago, when I put $500 down on a SW and the owner, that very weekend took his mobile home out of the park and disappeared with it. I ended up going to court spending court fees and got a judgement against, but no body nows where the guy is! So I was out about $700 total.
Anyway, I would like some information now and not have to wait until August to get this deal going.
Here is the situation again.
I have 2 city lots in a small town with city water and sewer.
I will buy a MH and put it on the lot.
Do I resell the land and the MH?
Rent it? @ $600 per month
Resell the MH only on owner financing? If so what do you suggest I sell a 1996 3br, 2 ba for and at what terms? Then I also charge for the lot rent?
It seems to me I would get the most money per month renting.
Yes, I have the deals on wheels book and read it a few years ago. I live in Northern Minnesota, there sure isn’t as many mobile homes up here as other parts of the country and I live in a an area of small towns.
What can I expect to pay for a 96, 3br, 2 ba.; these are pretty nice units and the 1979 3br, 2ba, in Lonnies book, do not even compare to these newer units, therefore I sure do not expect to find one for under $10,000. I have been looking around here for years and have never found one in the price range you are referring too. I also do not want a junker on my lot that I will have to fix up every few months.
Value is in the eye of the beholder, I would EXPECT to pay less than 5-6k for a early to mid 90?s model in good condition in my area and maybe a little more for a like new unit and would walk from most anything higher. Since I would be looking to move the home I would try to further reduce my cash out lay by targeting a unit that had to be moved and I would expect to pay more like 1-3k for a mover. Values in your area may very well be slightly higher but if you can convince yourself that you don?t have to pay anywhere near retail if you find a motivated seller and have cash or a way to solve their problems you will be able keep more of your cash in your pocket.
In a nutshell I use the income approach to value a deal. For example if the unit will rent for 600 a month COMFORTABLY and I want say 150 a month cash flow for managing the unit that leaves me with 450 per month to cover all expenses. Lets assume 20% (high but safe number) for vacancy,repairs, and lost rent that leaving 330 to cover mortgage payments, insurance, ect. From there you can figure out about what your max investment is to hit your goal. In this case I would want MY max investment to be around 30k with bank financing at a high of 9% and 240 months putting my payments before taxes and insurance around $270. (These are just numbers for example not an attempt to value your deal, you’re the one that needs to put together the real numbers)
Scott and Tony do a much better job of explaining the income approach and if you can’t attend the boot camp this year their book will help with land home deals, combined with deals on wheels you’ll have a good base to avoid most of the bigger mistakes that cost big money. I just don?t want to see you (or anyone else) drop good money on a unit, spend a few grand to move it and set it up only to find that you are negative cash flow after you?ve done all the work.
As for the rental issue: I personally not burned out yet and I really like our rental units, but many folks like Lonnie, Anne, and others that have been there and done that just don?t care for them any longer. To each their own.
Best wishes,
Ryan Needler
PS: I?m glad to see that the one small loss a few years ago hasn?t completely stopped you from investing, to avoid similar problems I use hundred dollar bills as deposits til I get control of the unit.
There are good units for 5,000 out there, but there not easy to detect in some areas. I have made a few phone calls into MN and found that to be a very pro-sellers mobile home market. Actually- I just talked to a guy who sold a 1988 below average condition 14x70 for 8,000 cash to a gal from Minneapolis. She is having it moved several hundred miles.