Hi Bob, You will get folks here that will say to stay away from those. I, however, have done ONLY those types due to not having the luxury of getting these 1990’s, 3bed/2baths for a song that I hear of. I’ve done only 60’s, 70’s, and 80’s. Only ONE was a 3bed. Have sold everyone of them, Avg. 195% yield. One did take 3 months but I received $3,600 down so managed about 160% yield on that if I remember correctly. I think it all depends on your market. I pay more for, and sell for about the same or less than most others here due to my market. However, my saving grace is that I push for higher downs and get them so the deals work. If you have newer, better homes to purchase than this 1960’s then by all means, pass on it. However, if your market will buy these, and you don’t mind the fix up, there is money in these too. Just my 2 cents. Todd (AZ)
Posted by bob oregon on April 05, 2007 at 14:15:51:
i bought my first home yesterday 1200 in a nice park needs work but i can do the work , my question is there is another home 2br 1 bath floors bad ,yellow inside smoker,many places below windows rotted thru , im not scared of fixing but scared since the owner thinks its from the 60’s ,park manager thinks it will sell fine but not her money on the line shes also giving me free lot rent for a month to get them rehabbed . being this old should i be concerned ??? Homes in this park sell from 6000 to 9000 for a single wide. they are asking 500 for the home .
thanks bob
Posted by Dr. B (OH) on April 06, 2007 at 07:12:25:
Bob,
Get the first one done and sold before buying another rehabber. That way you will have some experience in how long it takes to get ONE of these done. It will also give you experience on how long it takes to sell one in your area and for how much $$. I totally agree with Lin (NC), lot rent will eat you alive.
Once you are finished with this one, the 2nd one you are talking about will still be available, probably for less than $500. If not, nothing lost, lots of deals out there.
Alternatively, I would tell the PM “I would be happy to help you out by buying that home but I would need indefinite free lot rent due to its condition.”
Bob,
I did my first deals in Oregon (Corvallis). My buyers seemed to have bigger downs than elsewhere, and I sold a couple for cash ($8k and $12K) and I don’t see the same kind of cash here in NC. I also bought a 1966 10X50 in Oregon that I’ve sold twice now. The first time it went for $9k with $1500 down. I took about $5000 in payments and got it back. In Feb it sold for $7700. It was in great shape when I bought it, with new carpet, drywall and tile in kitchen and bath.
That said, I wouldn’t spend anything on that home, and, in fact, I’d let it go. The rehab will be high, the sales price will be pretty low, and a month comes and goes pretty fast. I don’t know where in Oregon you are, but I’d guess that your market and Todd’s are pretty different. Steve WA may have a different opinion because he knows the market in the Pacific NW pretty well, but I’d say pass on a major rehab like that. I probably wouldn’t try to sell it as a handyman special. Lot rent in OR can eat your alive.
My third deal was a '79 3/2 12X70 that I got for free that needed very little work. I did NOTHING to it except haul the nice ladder, microwave, and lawn mower that were left in the shed to my house. : ) My fourth deal cost me $8 out of pocket. 3 years later I’m still getting $250/mo. MANY easier deals exist. Give yourself a break and don’t do this one.