What Price is Right? - Posted by MM

Posted by Steve (WA) on June 29, 2002 at 01:10:10:

I agree with Tom - I have done a few, and I am finishing up my first mover - it was free. And I had a buyer that backed out just tonight, after giving me a $400 deposit two days ago. That almost makes up for all of the hidden costs, nickel-and-diming me to the edge, it seems. Building permit, moving permit, electrical permit, buying appliances, furnace replacement, skirting, etc etc etc

AAUUGGHH! Good thing this 1980 “freebie” will fetch a 15K note, easy.

What Price is Right? - Posted by MM

Posted by MM on June 28, 2002 at 03:38:43:

I am in process of negotiating and older(1972) mobile home. The asking price is $4000 but I want to acquire for $2000 or less. It is double wide with 4 Bed 1 bath. The park manager wants it to remove from the park. What is the right price to offer?

Also, when I resell the MH, I am concerned about the new buyer. How he going to move or do I have to show him where he can move the Mobile home? This is my first deal so I am kind of nervous and uncomfortable with circumstance that may come up. How does it work? Any help will be appreciated.

M&M, CA

Well since you asked… - Posted by Dr. Criaig Whisler CA

Posted by Dr. Criaig Whisler CA on June 28, 2002 at 14:55:36:

…free is OK if you can’t do any better.

This seems like a questionable deal, even if it is in California.

Often such older mobiles, ESPECIALLY doublwides, can be gotten free because of the high cost of moving and setting them up contrasted with the cost of doing the same for a singlewide.

It still may have some profit for you, especialy if you have some tax sale lots to trade for the moving and setup. The first thing I would do is take a couple of photographs of it and take them around to show to PMs Riverside and San Bernardino Counties to see if they will allow you to set it up in their parks. Most parks don’t want the older (pre 1977) stuff anymore.

A better price would be from free to $500. I think $4,000 would be a mistake.

I don’t reccomend moving double wides until you have done a couple dozen other deals first, then only if you can afford the a loss without it wiping our your investment capital.

This does not fit the Lonnie deal mold because when you get done moving and setting it up you will have $7,000 (plus and rehab costs) into it and it is only a 1972. If it were a 1992 I would jump on it with both feet at the same time.

It does have one EXCELLENT possibility though that I think other people aren’t noticing yet.

That is that since it has 4 bedrooms it could rent for as much a $1,100 per month on Section 8, on a private lot in Riverside County. That is assuming that it is or easily could be made real nice.

Offer $500 on this one and wait and see what happens. If they accept and you change your mind call me, I might be interested because I have a couple dozen private lots that I will be looking for 4-5 bedroom units for later this year.

Regards, doc

Re: What Price is Right? - Posted by Bob

Posted by Bob on June 28, 2002 at 04:24:00:

Well, you don’t mention the condition of the home. Depending on that and the location will determine the price. I however, would never even consider something that old that has to be moved for anything over oh, lets see…maybe free and I would take it, move it set it up do some reconditioning and then get about 15k out of it. If you cant get it free, then maybe a couple hundred. Regardless, you HAVE to consider the cost of the move. At 4k, it better be VERY nice.

Re: Well since you asked… - Posted by brad

Posted by brad on July 01, 2002 at 11:34:08:

i personally found a way to keep a home in a park after being told flat out that when it was purchassed i would have to move it, i begged…lol no not really i just told the buyer that i wanted it but the repairs had to be made before the move, the pm agreed and gave me two months to do the repairs for free,(long term tenant was selling it) once repairs were complete i envited the pm over to look at the lot to sign off on it and he asked to see the inside of it. since the outside looked decent, its still in the park on victory drive in columbus georgia and i have had the pm try to get me to take 7 others on the same deal but regretably i have had little time to do the work. if only i could find some dependable cheap labor. the park scum around here wont work even if you offer them a free home in the end.

Re: What Price is Right? - Posted by Tom

Posted by Tom on June 28, 2002 at 12:05:20:

As a first deal I would stay away from moving a home