putting mh on land - Posted by Anthony

Real Estate Investing Mobile Homes & Mobile Home Parks
#1

Posted by Jacque - WA on March 25, 2001 at 11:58:23:

Hi Anthony,

I don’t have ANY experience moving a mobile but I did buy a mobile with some property. The sellers had just put in the well and 3-bedroom septic. It was expensive…very expensive. It cost them almost $25,000 by the time they were done.

I would probably look for some properties that were mobile ready. I see them listed all the time.

Maybe someone with more experience in this arena can direct you. I would be intersted in some of the responses myself.

Jacque

#2

putting mh on land - Posted by Anthony

Posted by Anthony on March 25, 2001 at 08:28:07:

I live in a town that has alot of mh’s.Can it be profitable to buy land and set up a mh and sell as a home or is the cost too much? I was thinking about 1 acre with a used doublewide mh.I know I would have to put in a well and a septic system and there would be the cost of set up.Has anyone done this with success. Could you tell me if it would be worth it.Thank tou for any response.anthony

#3

Re: putting mh on land (LONG) - Posted by Jim Upchurch

Posted by Jim Upchurch on March 26, 2001 at 19:22:41:

I have also thought it could be very profitable to set the home up and sell it as a “spec” home. Im fact, I am in the process of doing this.

I am a mortgage broker and finance land/home packages for several dealers.

I have talked to a hard money lender to fund the transaction. It costs a “ton” but I don’t have a conventional lender to fund the deal until I do a few and get a line of credit.

I have arranged to buy the home from a dealer going out of business for about 75% of invoice. The one acre lot is in a manufactured home subdivision (includes well, septic, driveway and clearing) where similar homes sell for 110,000.

The details of the venture are as follows:

New 1750 SF DWMH… 27,000
One acre subdivision lot… 27,000
Delivery… 1,000
Footings… 2,500
Setup/trim… 4,500
Electrical… 700
Heat Pump… 1,800
Steps/Deck… 800
Plumbing… 600
Brick Veneer… 5,000
Permits… 100
Misc… 2,000
Hard money finance costs… 5,840
Four months interest… 3,893

Total cost… 82,773

I plan to sell the home to a FHA qualified borrower with “zero” down (97% loan). I will pay the closing costs and use a “non-profit” downpayment assistance program (Ex: “Nehemiah (sp?)”,“Hart” or “Buyers Fund”) to cover the down payment for the buyer (3% down payment + 1% fee to non-profit)

FHA Loan @ 97%… 106,603
Total cost of home… 82,773
Closing costs… 3,000
Down payment assistance… 4,396

Pre-tax profit… 16,434

Any suggestions before I get started (end of next week) would be greatly appreciated.

#4

Re: putting mh on land - Posted by Paul NM

Posted by Paul NM on March 25, 2001 at 15:03:39:

Hi Anthony,
I am sure these numbers vary a lot by location. In rural NM it will cost me $1,800 to $2,000 for the septic. I can get a well drilled and cased for $10/ft. (unless I am in the mountains where it is more. Dry holes cost the same :slight_smile: ) The top works for the well, pump, switches, housing etc. will run another $2,000. Electric is all over the place with about $500 for a pole or pedistal and upwards of several thousand if you have to get the power company to run poles. There are also impact fees in the thousands of dollars that vary from county to county and depend on what kind of home you put on the lot. I figure about $10,000/lot not including the cost of the land. It won’t work for me because there is no way to get my cash back out. I try to buy ones that are already improved at a discount.

I have been wondering if it might work if I put the home on a permanent foundation so the buyer could get conventional financing and I would get cashed out. But, I haven’t been curious enough to risk the $ :slight_smile:

Good luck,
Paul