Need advice on potential Mobile Home/Lot Development Deals ? - Posted by Earl
Posted by Earl on April 02, 2000 at 18:17:13:
I would like to know what others think about selling land/home packages. I can acquire lots for ~$5K, that have access to city water/sewer and electric. These lots are sold individually to Mobile Home owners. You can not move mobile homes more than 5 yrs. old into the MH community. I have received comps of MHs from realtor for 3BR/2BA homes 16X80, that sold last year for $60,000 - $63,000, and these homes were about 3-5 years old. I have a partner, that can buy repoed MHs for about $(12-15)K. I think we can buy a lot and home, plus other costs for a total investment of $25K, Then we can sell the home and lot for $(60-65)K, for a profit of about $35K.
I would like to get feedback from others on the pros and cons of doing a land/home package like this. Is this just wishful thinking on my part? I figure we have 3 ways to exit out, 1) Cash out with buyer getting financing 2)Just sell the home (easier for buyer to just get financed for home) and rent the lot for ~$250/mo. 3) Sell MH/LOT owner-financed and sell the note for cash.
Any advice would be greatly appreciated.