Trashed double wide - Posted by Les (IN)

import · March 10, 2006, 10:54am

Posted by Tony Colella on March 11, 2006 at 09:26:22:

Typically we find that the tenants in our doublewides tend to treat the properties better and more like a stick built home.

In my opinion, mobile homes are much easier to work on and truth be told, the quality expectation is less from tenants which allows for the do-it-yourself to make mistakes and learn.

As for materials, we buy mobile home supplies mostly from our local mobile home supply store but more and more we find that Lowe’s and Home Depot carry mobile home specific items (this may vary by area).

As for the wall materails you can buy the wallpapered/mobile home type drywall and ceiling material at the mobile home supply store but we tend to use panelling rated for mobile homes in singlewides or regular drywal in doublewides. Personally I prefer panelling as I do not have the patience or skills to mud and seam drywall. Mobiles allow me to cheat the mud/seam as the trim work is used to cover the seam when drywall is installed.

If you have repair experience with stick built, you will adapt to mobile homes quickly.

Tony

import · March 10, 2006, 10:54am

Trashed double wide - Posted by Les (IN)

Posted by Les (IN) on March 10, 2006 at 11:54:07:

Tony or Scott,

I just started thru you course material.
I have found a 1995 double wide on nice land.
Problem is the home is bad! It is a repo with a realtor.
It can be bought for $29,900. How much is realistic to put in to the home. My list is furnace, a/c (missing) hot water heater and floor under (some mold issues). Floor repairs at two doors. Walls have been moved or altered.
Floor coverings, paint all interior doors missing.
Kitchen cabinets,dishwasher.
Exterior skirting, landscaping some deck repairs and front porch ceiling repairs.
These are the bigger issues. It’s in a decent location in a small town.

Your thoughts please,

Les (IN)

import · March 11, 2006, 12:56am

Re: Trashed double wide - Posted by Tony Colella

Posted by Tony Colella on March 11, 2006 at 01:56:03:

There is too much unsaid in the post to really determine if there is money to be made.

Questions such as:

What do you plan to do with the property?

If you are following our path, you are looking at cashflow and equity capture.

If you are looking to flip you are looking at retail vs. wholesale plus fixup or replacement costs (and tax consequences).

What do you think you can retail this type of property for if you have a rehabbed or replaced doublewide (of same bed/bath)?

If you decide to repair, what are you options? Fix it yourself at cost, pay a handyman, pay a contractor etc.

If you decide to replace, what net value is gained after demolition of this unit and purchase, move, set up, fix up, decks, skirt (or foundation), inspections, etc.

Having read our material you understand that we lean towards an investment approach vs. a speculation approach. We buy based upon cash flow and find that if it cash flows, it usually captures great equity.

We do not speculate by paying more than cashflow supports in the hopes that future demand will resucue our profits. Not to mention that the IRS treats our Investments much better than it does Speculations.

I am not sure which category you deals falls into but perhaps this may shed some light upon how we might approach it.

Tony

import · March 12, 2006, 12:13pm

Re: Trashed double wide - Posted by Roy (FL)

Posted by Roy (FL) on March 12, 2006 at 13:13:26:

Learn as if you’re going to live forever, Live as if you’re going to die tomorrow

import · March 11, 2006, 6:16am

Re: Trashed double wide - Posted by Les (IN)

Posted by Les (IN) on March 11, 2006 at 07:16:13:

Thanks Tony for your response!
I haven’t gotten thru your material, so I guess I’m still not up to speed as to your approach.
I really hadn’t decided where I would retail the property or hold for rental income.
I would have had a handyman/contractor do most of the work. Time factor. I still have JOB.
I have done major rehabs to conventional real estate,
but the construction of the double wides throughs me a little.
Do you have a source for the wall materials typically found in the mobile homes?
As far as cash flow this property would have cash flowed even if I had spent $10K+ on rehab. I was planning a cash purchase.
My biggest hang up was this is my first venture into
owning a mobile for rental.
It’s my perception that they are not as durable as a
stick built home, against tenant use!
Tell if I wrong.
Sorry to be so long, just trying to give a frame of reference of my point of view.
At the writing of this note the property has been sold. So I guess I missed this one!
There are some double wides and modulars on the market in this, but start at high $40K and ramp up fast to over 80K. I have been in other repo’s that needed minimal work, but were priced like retail.
I’ll keep reading and looking.

Les (IN)