OfflineI found a mobile home for sale, seller is motivated. Problem is park is closing in 2 years. The home would cash flow nicely giving me 50%-80% ROI in 2 years. Then the park would destroy it for free or I could move it.Should I pull the trigger?
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I am not versed in mobile hm's but I do know that it is costly to move them I think around 5k-10k. the roi sounds awesome, what is the purch price? It could be worth your while, not sure tho if you could rent it out if people know they will only be there for 2yrs, sounds like I would pass on it.
But i would like to hear what others say.
Tony
Go faster do more! GFDM!
There are 3 ways that mobile home could leave the park. The park could destroy it, you could move it, or you could carry the paper and let your buyers move it.
The cost to move a MH is usually about $2500-$3500.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Hi Guys (and gal),
Tony-They are asking 11 I think I could get it 9-10k. The location is amazing but really doesn't matter because the park will be gone in 2 years. The rent would be somewhere between 900-1000 a month. I would just have to pay $200 (tax,fees,water,sewage) There is 23 months left on the land. I don't think it would be hard to find someone to move in now. I think it might be really hard if I end up with it vacant with less than a year. The good part is little risk and if I end up with a tenant who doesn't pay towards the end the park will kick them out with a bulldozer.
TRSD-Do you mean sell it and let them use the moving cost as a down payment? I actually really like that idea and didn't even think of it. I did think about selling the extras or scrap metal it.
Karen- Thank you, doesn't seem to bad but I need to find when it was built I heard the life span is between 10years-50years depending on that.
Is it a mh that is worth moving? Does the price reflect the condition of the mh or the fact that it has to be moved in 2 years? Were you planning on paying cash for it or asking the seller to carry the financing?
Check with the managers of other parks before you have to move the MH, some may give you a discount to use them to move it to their place and might even give you a free month or two to set it up there. Also wondering about how you are financing it, cash or owner financing? What year is it? What condition is it? And I wouldn't start out offering them so much, especially if its a cash offer. Maybe $5k and explain the expenses of the move and vacancy during. You might also be able to find another MH investor that has an old crappy MH that needs to be replaced and work out how he can by it from you in a year and a half, then he worries about moving it.
SEMPER FI
GET SOME!
well Mike there isn't much more to say they covered every thing for you!!!!!! Keep moving forward, Jim
jbischoff
I love this, Karen thx I learned something tonight about the cost of moving MH's, TRSD for diff ideas or exit strategies, Jack same as well & out of the box thinking cool bro. And jim ditto, so there you go mpressmi. what's your name btw?
Tony
Go faster do more! GFDM!
In 1979, the safely standards on MHs were upgraded.
When buying them, you want to avoid ones built before that year. I also agree with Jack on the price. Offer $5k.
The best book to get to learn about investing in MHs is "Deals on Wheels" by Lonnie Scruggs. He was considered to be the godfather of MH investing. There are also all the different contracts to use in the back of his book.
MHs are titled just like a car. Which makes them super easy to buy/sell. The owner just signs the title and you go to DMV to reregister. No closing. UNLESS it comes with the property. If it is on private land and is being sold with the land, you will have to check to see if it is deeded as part of the property or still is on separate title. If it is included on the deed, then you must close as on a house. I know this is not relevant in this situation, but it is good to know in case you come across another MH deal.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Hi Guys,
Karen-Thank you I am going to get that book. The home wasn't movable. It was built 60 years ago. It was also built before 1974 when there was federal standards.
I offered the owner $6,000 and they passed. I know the home isn't worth the risk if I went above this so I passed for now. When the deadline was put on the park it went from appreciating to a deprecating asset sort of like a stock option as I was only paying for time.
I was going to pay cash. The plan was to rent it then sell the home or scrap it.