Posted by Tony Colella on August 26, 2005 at 10:03:37:
Rob,
Scott and I wrote a book that we have here that deals strictly with Investing in Mobile Homes with Land.
There are many ways to make money with mobile homes and mobile homes with land. In an area that is appreciating and growing as you described, those lots could be a very nice addition to your portfolio. Of course you must get them at a reasonable price and dealing with that non-motivated seller could be frustrating but perhaps worth it.
Your numbers are a bit on the higher side than I would like, especially if this is a singlewide land/home deal.
Doublewides would work well now or in the future as they allow you to get your money back and then some (we use what we call a “Land Bank” approach to accomplish this).
You may well be on the right track and with some strategy you should be able to find a way to not only buy the property but also pull the $20k you mentioned in 12 months so that you can do more deals.
I have been studying DOW for about a month. Had some cards made up, started walking and talking, put a ficticious ad in the paper advertising an 80’s home, learned to use a finance calc. Right now have three people that seriously need a home and have cash, 1 to 3 k down. Having a tough time finding a motivated seller, but
during a park walk I met a lady that was renting a single wide that was on an owned lot. The lot and home is for sale- the home is trashed and the combo is overpriced. She wants to stay in neighborhood, around corner is nice lot and trailer combo. A clean 2x1 columbia 1972 listed for 49500. (lot and home) they will not move from 45k. I have the cash and/or line of credit, the previosly mentioned lady lady will rent for 585/m. Good cash flow especially when compared with houses in the area. This is not what I was really looking for and would leave about 20K to pursue Lonnie deals. The park is sandwiched in a very desirable urban area surronded by upscale homes and would have been sold off if not individually owned. Would make nice 2x lot on foundation after a year of rent. Any advice?
PS a realtor friend printed out comps and it is on the lower end of value of previosly sold units on owned land