Posted by Don-NY on October 18, 2005 at 12:58:37:
I have found that 2 br’s and 12 wides for sure are WAY harder to get quality buyers/tennants into.
possible first deal - Posted by Demetrice (AZ)
Posted by Demetrice (AZ) on October 17, 2005 at 06:33:08:
hi, I have a possible first deal, a lady wants to give me a mobile home for free, she just wants it off her property, so she could build her daughter a house next to hers, i got prices on moving and set up around $2000, it needs skirting thats about it everything else is in great condition inside and out, its a 1974(I know real old) fleetwood 2/1, talk to park manager, he seen pictures and gave me the okay to move it in as long as i do the skirting within 30 days, i have a few buyers for it, but im kinda nervous about doing it, are there any hidden expenses that i have to look forward to from the state inspections and all that, im really excited about doing my first deal, should i be starting with this one, lonnie deals are really hard to find in the phoenix area i’ve been looking since march of this year
1974(I know real old) - Posted by Steve-AZ
Posted by Steve-AZ on October 17, 2005 at 19:54:33:
Hi Demetrice,
I would recommend passing on this “deal”.
Many cities in AZ have a pre-hud law, that would really limit where you can put this trailer.
“talk to park manager, he seen pictures and gave me the okay to move it in”
Does the park manager even know if that old of a trailer can be moved into the city limits? This is not a good deal even at free. I think Patrick covered most of the reasons why you should run from this “deal”.
Regards,
Steve
Re: possible first deal - Posted by Patrick
Posted by Patrick on October 17, 2005 at 17:51:33:
Demetrice,
RUN, don?t walk to the nearest exit! This ?deal? could sink you!
Having read DOW, you know Lonnie strongly advises against rookies moving homes; you?d be well served heeding his sound advice.
Here?s what I see right out of the chute based on your description. The home is pre-HUD, not a big deal if it stays put (which, you write, it won?t). If you move this home, you will more than likely be required to make it HUD compliant…cha ching! Are you sure skirting is all it needs??? Most parks require awnings (both sides) and a shed and that?s gonna run ya $5,000 easily. Are you moving it to a family park? If so, will a ?74 2 bedroom sell? I find it hard to believe that it will move quickly and then you?re on the hook for X number of months in space rent. Do you have enough reserve for this contingency?
I?d also caution you about the park manager?s advice on moving the home in the park. Make darn certain that the owner (not his /her employee) is OK with bringing in a 31 year old home. Also, check with the local government, will they allow a pre-HUD home to be delivered to their city? Again, you?ll probably be told that it has to be made HUD compliant.
So once you add the moving ($2K), park package ($5K plus), HUD compliance expenses (?), etc. you could easily have $8K+ sunk in this ?free? mobile home. What kind of margin can you put on top of that to make it work for you? From where I sit, a 1974 2/1 Fleetwood ain?t worth anywhere near what you?d have to put in it. Again, RUN!!!
Keep your chin up and keep looking. Remember, we?re looking for motivated sellers and they?re always out there. You?ll find ?em.
Good luck!
Re: possible first deal - Posted by dave
Posted by dave on October 17, 2005 at 17:04:06:
Dont let this one get away!!
It will take a little work but there is definitly enough profit in the deal to get you into another investment property when you are done. See if you can use the new buyers money for the set-up and skirting.
Re: 197…ask the decision makers - Posted by James
Posted by James on October 18, 2005 at 16:47:18:
Don’t just guess at this or get others to guess for you (PM). Take the specifics to the inspection department that will be overseeing that area and ask them about the move and acceptability.
Movers also know who the decision makers are, so while you are getting 2-3 written proposals about this move (Yeah, right…a mover being able to speak coherently is a rarity) or at least running this by them, ask them your questions and who locally officiates in these matters.
Arriving at a lot with a trailer is not the time to find you need rewiring of the electric or that the plumbing is not up to code, or the year wont allow it to go into that subdivision.
I know a couple of ‘cities’ in this area which wont allow any home 5 years or older into their town. I suggest to you that a less than honest mover will trailer your home and go there anyway, and if he is stopped, its your trouble, as now he conveniently has storage at only $30 a day, and yo uprepaid for the move, you may recall.
Also, a PM wanting a space filled may not be too concerned if you get fined, and cannot rent or sell on his lot, as long as he gets paid for the time in park and can smooth things over with the city, so he still makes money.
Ulterior motives may also exist at the department of inspections, but that is rarer. Especially if you go in, and send them a written overview of your conversation and understanding of what was stated to you. In such cases they need to object timely if you have your facts crosswise. In short, why ask everyone under the sun what the inspection department wants when they have a phone and an address specifically to deal with these questions.
I, personally, want to know the shape of the electric in your home, and if it can meet the meter and code requirements. Changing that may run $200-$500. Check that with an electician. Its septic and water are also an issue to check. Finally, given its age, what issues with axles will movers encounter?
J
PS Your ‘seller’ wants this gone. She faces disposal or tear down fees anyway. If she wants you to take it, let her move it, and set it up. THEN you will buy it for $10. Her site prep is currently her problem, if she gives you a $3000 headache for free, then you still have a $3000 headache you did not have before this ‘free’ deal. Let her pay you to take it. I must admit that when I do tell people their 12 year old storage/deer lease mh is about $5-6k to get out of Timbuktu, and then will be worth $1500 I never hear from them again. I often have wondered if they tore it down in place (which I often suggest), or if they took it to a dump as is at $4000 or so total fees. BUT, I never get these ‘freebies’ when I suggest I get paid to be the sucker…so it depends on how much you want to be this sucker, and how short sighted you are.
If you have a license, you are a pro, and these things are your due diligence to ascertain diligently.