Any Bright Ideas?
I have posted an ad for a property where the owner will carry existing financing. An unexpected response is from an owner of a 2002 double-wide on 5 acres with water rights included. All the owner wants is someone to take over payments at $417/mo with a total purchase price of 49K (including the land).
There has to be a deal here somewhere but I'm not sure what to do. Should I agree to take over payments and rent the property (I could probably get $650-$700/mo)? Should I take over payments and then do a L/O? Do mobile home depreciate significantly if they are not on a permanent foundation? Is it worth adding a permanent foundation to drive the price up? Should I employ a buy and hold strategy if that matches my long-term objectives?
I'm concerned I'm not thinking far enough outside the box and might miss an opportunity to make more profits. If, given a similar situation, what are some alternatives you veterans suggest I consider?
Thank you for your time.
Bryan
I can't believe I'm replying to your post because I'm not an investor per say. I can offer you this. Here in some areas near me in Florida you can have a mobile home on a 5 acrea lot but within like 5 to 7 yrs. a permanent structure home would need to be put up and the mobil home removed.
My advice: look into the building zoning ordinances/requirements on 5 acrea lots
with mobil homes on them for your Colorado area. Also, the Seller could probably inform you, he should already know. Also, how long has he owned just the land -- maybe he was given a certain amount of time (yrs) to put up a structure, perhaps the clock is ticking away and he's decided he wants out.
If there's no requirement that you must build a permanent structure--residence unless it should be amended at some point later on -- then the home can stay as long as that's the case.
Hope this helped. Joan[ Edited by earl45 on Date 08/19/2003 ]
Having at one time sold mobile homes in the state of Ohio, most properties here consider a double-wide a 'sectional' home and once they are on a permanent foundation, the motor vehicle deed is put with the land deed to produce a new deed for the newly built home. Now, once this happens, normal mortgage rules apply(in Ohio). Ask a local mobile home dealer. They'll probably be happy to help with some pertinent information. Also, I agree that you should ask the current owner for a copy of his copy of the deed. Hope this helps.