Posted by Skip (CA) on September 13, 2004 at 09:57:58:
JJ
If you wanted to take a run at this property for the experience, you might find out the highest costs to move and dismantle each of the mobile homes (call them trailers in your offer)and use that to substantiate an unreasonably low offer to the seller.
Example: If it would cost you $5-7,000 to have each “trailer” removed from the property and dismanteled, plus another couple of thousand to remove other debris or clean up the land, plus a contingency factor, then an offer of $19k for the land (as is) would not be unreasonable. Remember, I don’t know what the numbers are in your area, but if you’re interested it could be a great learning experience and what would happen if the seller was unknowingly desperate for cash? Just a thought. Good luck!
Possible Opportunity need advise - Posted by JJ(NC)
Posted by JJ(NC) on September 11, 2004 at 15:04:17:
Hi,
I am a new college grad that is looking to invest in real estate as soon as I land a FT paying job. I am looking for RE opportunities while I’m looking for a job.
Since I have very little starting cash I think mobile homes would be a good start, so thats why I’ve spent the last few months reading this board and I bought both of Mr. Lonnie’s books.
Ok here is the opportunity.
My Dad and I drove out to a rural part of the county I live in (in central NC) and found an area with a sizable amout of empty mobile homes, but lots of people living around the area too. This area has alot of trees,gravel road, and a pretty creek that is behind the properties (floods but my dad said not in these areas).
There are 2 SW’s, 1 smaller SW, and one DW on a brick foundation all on the same side of the road on lots and they are all empty. The 2 SW are in abandoned (looks like for awhile) shape with one having the front door missing and some skirting and various other things in need of repair. I didn’t get a good look at the smaller SW but it was in similair shape. There are no for sale signs, just abandoned.
The 3/2 DW is for sale on the MLS via VA realtor ($40k asking) it is on an acre lot with a beautiful view of the creek in the very back of the lot with a small workshop. The porch, parts of the roof, and siding need some repair.
I have not contacted anyone, this is just from being nosey around the property.
That 40K is way too high I know, but what you do next if this opportunity (or similiar ones like it) was in front of you.
Re: Possible Opportunity need advise - Posted by TonyInNewJersey
Posted by TonyInNewJersey on September 14, 2004 at 10:06:33:
I think as long as you are buying the land with the MH and completely discount the value of the trailer when you purchase it, it’s hard to see how you can go wrong, unless you overpay for the land, which is easy to do. The tax assessor is a good place to start. Since this deal involves a Realtor, let him/her give you comps of similiar properties so you can get additional information on the resale price.
Re: Possible Opportunity need advise - Posted by Tony-VA/NC
Posted by Tony-VA/NC on September 12, 2004 at 12:51:37:
JJ,
If the $40k includes the acre of land, you may well have a deal. What would that home rent for in your area?
What is the tax assessed value?
We typically target properties like this to be acquired for $40k or less and no more than $45k after fix up. They appraise for $65k or better here and rent well at about $700 per month.
Do some homework on this one and you might find you have a deal.
Posted by Gavin Wilkinson on September 11, 2004 at 15:39:17:
Look for motivated sellers, not for mobile homes. Anybody can find a mobile home in 5 minutes. The trick is to find someone willing to sell them at a fair price. These MIGHT be motivated sellers, but probably are not. Out of every 100 sellers, I think only one is really motivated.
Posted by JJ(NC) on September 12, 2004 at 22:08:52:
Is there a place I can look up tax assessed value online?
I believe the DW could rent as high as $600, but $500 is probably more realistic. And yes it is selling with the acre of land.
There is also one just like it in a nice development with a 2 car garage for 45K on 1/2 acre lot. I just dont know how good of investments these brick foundation DW’s are.
Re: Thanks for the replies guys - Posted by Tony-VA/NC
Posted by Tony-VA/NC on September 14, 2004 at 08:51:05:
Some counties, like ours here in Asheville, NC do have the tax records on file via the internet.
Brick foundation or “permanent foundation” doublewides are treated very closely to stick built homes as far as financing and marketing.
Because these homes are typically larger and have more ammenities than a similarly priced stick built home, many folks both buy and rent these deals.
I prefer to rent them for years to come and at some point sell the home (on a note) and rent the dirt.
There is a plethora of things you can do with these doublewide deals to make a fortune. I don’t know if you will be attending the mobile home workshop in October 1-3 but we will be speaking about these exact types of deals on Friday night and discussing them with anyone and everyone the rest of the weekend. Come join us if you can. One deal would more than pay for the workshop and one mistake would no doubt cost you more. I am happy to help you examine this and other deals if you care to bring them.