Posted by Nicole_AZ on March 04, 2000 at 14:11:33:
Got back from convention and dived in as fast as I could. I found two deals that I would like to think out loud about and get a response. I have read both of Lonnie’s books and orderer the tapes.
Let me start by saying both of these homes are in a Senior Park. I know that most of the regulars don’t like to work Senior Parks, but I happened on this one by accident. I am trying to think of all the pros and cons to working in the Senior Parks.
More likely to pay regularly
More likely to take good care of home
Less likely to cause disterbances in the parks
Less likely to take fixer-uppers
Population halfs in summer months making it harder to market(this would only be a problem if the home got turned back to me because I wouldn’t buy close to summer).
Person more likely to die, leaving me with the loan/home.
Hopefully, you can help me to think of anything else I have forgotten.
I have already spoken to the PM in this park and she is very receptive to what I want to do.
Next, the first deal I found is a 1969 Sahara 12x43 one bedroom with all appliances including fridge and w/d. Has new carpet but still needs some general clean up and caulk type work. The outside needs a 10x34 awning and unitizing installed as well as the plastic siding being replaced for vinyl or aluminum to stay in park. The seller’s original asking price was $3000. She is already down to $2000 with very little haggling and has said she just wants to get what she has paid in lot rent. I think I could get this for $1000 and sell (after fix up stuff) for $5500 with financing. I was told the awning and unitizing would cost about $1500. I am not sure what the siding would cost.
Next, 1974 Cameron 14x16 2 bedroom/one bath, fully furnished including w/d in very good shape, no work needed. Wife died and husband wants to move back east. It is listed with the PM who is also a broker. I didn’t get to speak to the individual but broker thinks he is very motivated. Is currently listed at $15500. $13-$15K seems to be about the “AVERAGE” price range for unfurnished at this age here in Sunny AZ. Given that this is with the broker, I can’t ask if they can do better than that. I just need to decide what, if any, I would like to pay and make the offer.
This is, of course, if I even really want to do Senior Parks. I feel this is a market area that is being passed up because there might be some different types of risks involved. Isn’t the idea of CREATIVE real estate investing to find a common idea and change it to make it work where you are. I know that many of you don’t think this is a safe venture. What I would like to know is why? I don’t like people telling me it can’t be done, and neither do you. We all get that every day from “non” believers. I don’t think it is necessary here.
Thanks for the feedback.