Posted by Eric on September 05, 2005 at 20:02:08:
Thanks for your feedback and vote of confidence. It is much appreciated.
Questions about Arizona MH’s - Posted by Eric
Posted by Eric on September 05, 2005 at 01:02:56:
Hey all, I just spent a hour or so reading some of the posts out there. I have read both of Lonnie’s books (that I am aware of) and I am intrigued. I have done some SFH’s, flips and rentals and fared ok, but available cash is in short supply. I looked at MH’s thinking I could do more with less. One thing I have noticed is that most everyone that is successful with this is based in the East and South East.
I hardly ever see anyone from anywhere else. I am in AZ and with the retirement population out here thought this would be a homerun. Unfortunately, prices don’t seem to be anywhere close to what you all have posted here and everything seems to cost quite a bit more. Up until the last 18 months our real estate prices were very low compared to most other large cities but now we are right up there with everyone else. How does that fare in the MH arena?
I also looked for a mobile home park as an investment, but I could not find one listed anywhere, and of course no real estate people willing to look either. I wonder where would be a good resource for this information?
Lastly, as for the prices, everything out here seems to be a double-wide at least in Phoenix, If I go to the outskirts of town there is still one military base (which I remember Lonnie mentioning he had good experiences with), and some parks out there as well as in the smaller towns outside of Phoenix, but is going that far out worth it for one or two deals?
Any insight from some of you experienced types would be greatly appreciated. Also if you are from or know anyone doing business in Phoenix AZ, I would love to get some insight. Thank you.
Re: Questions about Arizona MH’s - Posted by Steve-AZ
Posted by Steve-AZ on September 06, 2005 at 08:05:19:
Hi Eric,
I live in the east valley and see many, many, mobiles for sale here. As to the asking prices, I just ignore that. In other words, I don’t care what the seller thinks their trailer is worth, all I care about is what I can buy it for when they become motivated.
Don’t let asking price scare you off, it’s not relevent, if the seller becomes motivated, they’ll drop their price faster than wallyworld.
The outskirts of Phx. in some of the bedroom communities is where you’re gonna find MHP’s. The land in Phx. has become far to valuable for MHP’s to remain in the valley center,they have mostly been sold to build condos.
You might look in Avondale, Goodyear, Litchfield. If you ride the speedbumps, you’ll find some deals.
After you find a couple of parks you would like to work in, talk to the manager. They are your best source of leads for trailers for sale. Most MHP’s are like very small towns, everybody knows everybody, and their business. The manager of a small park will know everthing about everybody in their park. The MHP manager is your best friend, when it comes to finding deals.
Regards,
Steve
Re: Questions about Arizona MH’s - Posted by Nate-WI
Posted by Nate-WI on September 05, 2005 at 09:01:10:
Hey…don’t forget about the Midwest!
Nate-WI
Re: Questions about Arizona MH’s - Posted by Eric
Posted by Eric on September 06, 2005 at 10:19:21:
Wow, awesome feedback, Thanks Steve. Have you done any research in Apache Junction or Sun City, I figured with all the retires out here, this would be a good place as well. I also got some leads up in Flagstaff, where my brother lives and there seem to be good opportunities there as well, just still over priced. Thanks again…
Re: Questions about Arizona MH’s - Posted by Eric
Posted by Eric on September 05, 2005 at 11:02:10:
Sorry yes, and the midwest…
Re: Questions about Arizona MH’s - Posted by Robin (OR)
Posted by Robin (OR) on September 05, 2005 at 18:54:14:
I had thought the same thing about Oregon - i.e. that real estate prices are so high out here that there is no way I could find an mh in the price range recommended in DOW. But since I’ve been really been looking into it, I realize I was wrong. There are motivated sellers everywhere. I know of at least 3 mh’s that I could buy today for under $4k. (I am waiting on my dealer’s license to buy my first) What I have noticed is they won’t be advertised at these prices. You’ll probably have to educate the sellers as to what the actual “cash” value of the home is. I posted a couple weeks ago about a home I’d looked at that I was considering - it was advertised in the paper at $7500. The seller basically told me to just make an offer. I didn’t - because at the time I hadn’t read DOW and wasn’t sure how to proceed. Now that I’ve read it, I decided I need to get my license first. But the point is - that seller has called me a couple times since. They aren’t getting any other offers! Few people can come up with thousands of dollars in cash, which makes this a buyer’s market even in an area of hot real estate. Some sellers are obstinate about what they percieve to be their homes value. I looked at a real junker that was listed at $8000, and the seller thought that was a steal! Some people you can’t work with. Maybe I’ll call him back in a couple months…
I am very much a “newbie”, and not from Arizona - so take what I’ve said with a grain of salt. But don’t get discouraged. Real estate is overpriced out here, too, but I don’t think that really effects our market, other than to make it even more profitable for someone who can offer affordable housing to low-income folks.
Good Luck!
Robin