Possible first deal, but - Posted by Mox (OR)

import · July 10, 2003, 11:37pm

Posted by Mox (OR) on July 12, 2003 at 11:05:30:

Beaverton. The lot rents are pricey. I have to do some homework on local apartment prices. I havent rented for a long time and maybe they have gone up.

import · July 10, 2003, 11:37pm

Posted by Mox (OR) on July 10, 2003 at 23:37:51:

After reading this site for about 4 years and owning DOW1 and DOW2 for about as long, I have decided that I have run out of excueses and have finally been out looking for my first deal to get this off the ground!

I saw a couple good prospects this evening, but i have a couple concerns about one of my two best prospects. I found a 1962 10’ x 44’ in kind of rough condition in a park in my area. Asking price went from $2500 the other day to $2000 before i set foot in the door and he was at $1800 before I left. I am pretty sure I could do this for $800 to $1200 max, so the price is good.

Concerns:

one bedroom 10x44. How hard are small one bedrooms to sell in a family oriented park?
Park rent is now $425 and the park is just OK, no amenities and all old semi run down houses, but well kept for the most part. She is basing this rent amount on the fact that there is a park down the street at $525, but its a really nice park.
Internal repairs looked real easy (he was just a lazy … i guess), but some of the external aluminum siding is kind of holey. How hard is that to fix?

Any thoughts on the above issues would be greatly appreciated. I have second prospect, but the asking price is $3800, and it is being sold by the PM, so I dont know how that one will go yet.

Thanks for any help. -Michael

import · July 13, 2003, 2:03pm

Re: Possible first deal, but - Posted by Dave Swett-CA

Posted by Dave Swett-CA on July 13, 2003 at 14:03:33:

Pass, pass, pass.

I just purchased a similar 10x45, two small bedroom MH on a private lot in Maine and it was in great shape. I really bought the deal for ownership of the land, but wanted to wait another year or so before I spend any more capital on replacing the MH so I rented the trlr.

Had a dog of a time. Initially advertised two bedrooms, but was getting husband and wife with two kids or single mom with two kids. None of that stuff would work in such a small place.

Decided that my best client would be a single person and lowered the rent by a third to make it affordable for a single person and changed my ad to one bedroom. Rented easily, but at a lower cash flow. I figure that I’m losing at least $200 (probably even more)economic rent from the poor quality utilization of the land. But the small MH trlr is giving me break even cash flow until I can get my ducks lined up to get a newer and bigger MH onto the property.

when you say $425 lot rent, I cringe at how little rent you would be getting for the crummy little trlr. No one will want to rent a small trlr and pay that kind of money. I have discovered that a lot of disability and rtired types are earning only $650-$700 per month from the govt; they can’t afford to spend it all on rent.

DJ

import · July 11, 2003, 9:28am

Re: Possible first deal, but - Posted by Mox (OR)

Posted by Mox (OR) on July 11, 2003 at 09:28:53:

Thanks for the help guys. I didnt think it was THAT bad, but I certainly get the message on it. I have a couple other possibilities that arent as ugly.

My first deal results posting will have to wait a bit.

import · July 11, 2003, 1:53am

Re: Possible first deal, but - Posted by Bob(OH)

Posted by Bob(OH) on July 11, 2003 at 01:53:22:

10 x 44…sounds like a camper. This may be something good to take to the woods for a weekend get away.
This type of home would be on the “gotta go” list in my park. Would not even entertain the idea no matter what the condition is.
I’d take a couple hundred from the owner and tell them I’ll haul it away for them.
Another idea would be to donate it to the local fire department for them to burn down for training.
Those would be the best ideas I would have for the place.
Good luck.
Bob(OH)

import · July 11, 2003, 12:08am

Not. - Posted by Mr. C

Posted by Mr. C on July 11, 2003 at 24:08:40:

1962 - one bedroom 10x44. How hard are small one bedrooms to sell in a family oriented park?

EXTREMELY.

Park rent is now $425 and the park is just OK, no amenities and all old semi run down houses, but well kept for the most part. She is basing this rent amount on the fact that there is a park down the street at $525, but its a really nice park.

The lot rent will obviously be quite abit higher than the note payment (in a manner of speaking, it’s upside down). If this “thing” comes back to you, your on the hook for $425 every month until you can resell it. I’ll now refer you to question #1.

Internal repairs looked real easy (he was just a lazy … i guess), but some of the external aluminum siding is kind of holey. How hard is that to fix?

I don’t even wanna know… just the sound of that scares the hell out of me.

import · July 12, 2003, 12:18am

Where are you? - Posted by Lin

Posted by Lin on July 12, 2003 at 24:18:10:

I’m curious about the area you’re in. I’m in OR, too, but your deals sound kind of pricey and lot rents sound really high. Are you in the Portland area? I’m in Corvallis.

Lin