The North Texas MH Market - Posted by Steve-O (TX)

Real Estate Investing Single-Family Homes
#1

Posted by Edwin Bland on June 20, 2007 at 05:18:34:

Thanks for your response Dan!

I’m under contract to buy a “turnaround” park. I have 3 weeks left until closing. There are 21 MH’s… I anticipate trashing 3-5 of these. There’s also a 3BD/3BA SFR on the property that’s vacant & in need of repair… that will be the first priority. Since it’s a cash deal I believe I can pull capital out of the SFR after it’s rehabbed…
I’m looking for single wides newer than '95 if possible in reasonable condition that can be toted to the DFW metro area with ease. I’d like to pay under $8k for acquisition, setup & rehab. I’m still in the due diligence period… how exhausting. … land surveys, TCEQ, septic inspections, contract reviews, mineral contract reviews, etc…

16x80’s in the 4k range sounds doable… I won’t be ready for these for a couple months… I need to spend my time initially cleaning the park up, establishing some rules & stabilizing the rent base that’s there.

Thanks man!

p.s. What are you paying for toting fees? I have a buddy who pays $400… but his guy also lives in his park… that’s a pull only.

Regards,

Edwin Bland

#2

The North Texas MH Market - Posted by Steve-O (TX)

Posted by Steve-O (TX) on June 13, 2007 at 08:27:55:

Hey everyone. This is a great and informative site!

Trying to get my feet wet, but have a couple of observations that make me cautious and somewhat dis-heartened …

I’m finding a real cross-section of parks … some trashy, some OK and others nicely maintained (usually by professional operating companies).

Some of the “professional” parks have large numbers of empty lots and also numerous homes for sale through the MHP office. Would these be parks that you would typically avoid, as you are in competition with the manager? Does this indicate a flat market or maybe just mis-management? Quite a few of the empty homes were obviously foreclosed/repossessed, due to the posted notices.

Any suggestions?

Thanks so much for your advice.
Steve-O

#3

Re: The North Texas MH Market - Posted by Jim Runnels

Posted by Jim Runnels on June 13, 2007 at 11:09:40:

Steve,

Mobile home parks are having a difficult time filling up because there is very little financing available. Most lenders want the home to be on vacant land, not a rented lot. There are lots of opportunities in the parks with vacant lots. Two parks I work with in North Texas will give you $1,500 if you move a mobile home into the park. Vanderbilt has a repo lot right in my area. Stick with “Lonnie deals” and you will find a lot of opportunities.

Good luck

Jim

#4

Re: The North Texas MH Market - Posted by Edwin Bland

Posted by Edwin Bland on June 19, 2007 at 19:48:56:

Re: Vanderbilt repo lot in North Texas.
Where is the Vanderbilt repo lot located at? I’ve viewed their listings online… but I’d love to view the MH’s in person without driving a huge distance to start getting my feet wet.
Edwin Bland - Mansfield, TX

#5

Re: The North Texas MH Market - Posted by Steve O

Posted by Steve O on June 13, 2007 at 13:23:21:

Many thanks, Jim.

Just 2 more questions …

Are MH parks generally “receptive” to you bringing homes in when they have a bunch of their own they are trying to sell?

Do you tend to find better deals the further you are from big cities?

Thanks,
Steve O

#6

Re: The North Texas MH Market - Posted by Jim (Tex)

Posted by Jim (Tex) on June 20, 2007 at 06:08:23:

The Vanderbilt repo lot is located at 709 N. Collins Freeway (U.S. 75), Howe, Texas, 75459. Take the Haning Street Exit and go north along the frontage road, you can’t miss it. JR Mobile Home Sales consists of nothing but Vanderbilt repos.

Howe, Texas is located approximately 4 miles south of Sherman, Texas on Interstate 75. Sherman, Tx is located 60 miles north of Dallas.

Jim

#7

Re: The North Texas MH Market - Posted by dan

Posted by dan on June 19, 2007 at 21:48:56:

vanderbilt has no lot per se but i buy in north texas from field reps everyday who call me from inside the home and send pics and explain damages, dont know what kind of homes you are looking for but 16x80s are going from 4-12 depending on condition, i have several 04 14x70s for 15k that are complete with a/c , furniture and ready to move into and surplus to my needs, also i can forward pics of specific homes, email me anytime

#8

Re: The North Texas MH Market - Posted by Jim (Tex)

Posted by Jim (Tex) on June 13, 2007 at 13:55:48:

The parks are only trying to sell homes to keep them from being moved. The parks make their money from the lot rent (roughly $3,000 per year). The parks are greatful to anyone who moves a home in.

I have never done any deals in the big city, so I don’t know about prices, demand, etc. I just know in my small community there is a huge demand for clean and safe low priced housing.

Jim

#9

Re: The North Texas MH Market - Posted by Edwin Bland

Posted by Edwin Bland on June 20, 2007 at 15:56:17:

Jim,

I really appreciate the info! Thanks so much!

Regards,

Edwin Bland