Posted by Andrea on May 05, 2000 at 13:32:16:
Okay let me preface this by saying that I am FAR from an expert here… this is just what would seem to be common sense to me…
You need to have a handle on what payments would be including lot rent and note payment for your prospective buyer. Does that figure compare to what a person might otherwise be paying for rent for a similar size apartment?
You said you want to ‘flip’ this. Do you mean to a retail buyer? Without being certain of repair cost and market value (depending on the age of the MH, this will be dictated by either what the market will bear in the case of an older home whose ‘value’ is all but gone, or a newer home that can better relate to it’s blue book value and be refinanced by an outside source with you getting some dough for your effort).
You’ll really need to look further into the details of the note that is on it currently. The bank that financed it originally should be able to tell you what they would refi it for now and then you have to ask yourself why you would pay close to retail and take on the responsibility of paying for the note and the lot rent until you have a way to obligate someone else for that.
You don’t give any info on the MH age etc… or whether you know how much it might need in repairs, or whether you’ve spoken to the owner of the property to be certain that you can leave it on the lot (imagine having to move that addition
Lonnie’s book has great forms in the back that will help you to ‘tie up’ the deal if it is something that you decide to do. In my mind, it would seem wiser to get to know your market a little better than solely through some ads in the paper.
Think about it carefully.
Hope this helps,