Is Rehabbing A MH A Bad Idea?
I bought a Manufactured home at a tax deed auction, I wasnt able to check on the condition of the inside until after the sale. Well, it turned out to be an absolute mess inside. I was wondering if rehabbing it could be an option versus demolishing it.
Heres the facts...
1983 single wide, 920 sq ft
Needs new everything....floors, kitchen, paint inside and out.
I am assuming that since it was over 20 years old, to just go ahead and demolish it, but I thought I would ask those that know about MHs for some opinions before I do that....Thanks
Agreed. I tend to shy away from car-houses, but a friend of mine has been making some very good cash buying cheap (the key of course), doing a lint pocket rehab and selling fairly cheap. I was surprised actually.
Really I suppose you could go either way, it just depends on your market and what you paid.
I would agree with wrldplayground, it would depend alot on what you paid and in what condition the MH is. If its a good brand and the primary structure is in good shape then it could most definetly be worth a fix-up. It would also depend alot on the contractor you get, getting someone you can trust to be honest with you on the condition and what it would take to get it livable. I have seen it done on these older MH and it could be a great cash flow or profit package. I would also like to warn you about its "true" condition, be very strict in your inspection, I know alot of the older trailers had problems with the plumbing systems. The noteable "Black Pipe" i believe. Just my 2 cents.
I only paid 10k for the land and the trailer.
I think it is a Liberty and its a 1983....basically needs to be gutted and redone everything.....even the outside, the siding, probably a roof. I would assume it needs 15 to 20k dumped in it. Then I could possibly resell it for 40k, but I would need a cash buyer because I doubt anyone would finance a MH that old....I dont think its worth it at this point. I may just demo it and sit on the land for a few years. Or put a brand new MH on it and sell it that way. What would you do?
well, in my opinion $15-20k is to much to put into a mobile home, espeacially one that old. But?, once again it would depend on your personal resources and your personal preference. If the frame and inrastructure is good (plumbing & electrical) and your lot has no other uses that would be better in the next couple of years then try it. IF worst comes to worst your could maybe owner finance it with some cash down. Bottom line, are you comfortable putting that much of an investment into it? Do you have the resources?
Chad
Thank you all so much for your responses....The MH is gone now....and I am now trying to decide if we should put a newer used MH and resell or sit on it for 10 years....Still researching and debating over this one.
[addsig]
I did just that yesterday on a MH and lot. Found this MH that I purchased a couple of months ago (a repo) and paid $4500. Put about $750 into repairs. I was able to purchase the property it was located on (1/2 acre of city property) from the land owner for $3500. She hadn’t worked in a year and half and was on the verge of losing the property for back taxes. She paid the $1500 in back taxes as part of the deal.
I sold the home for $26,500. Got $5500 down and financed the rest. Didn’t sale the property - leased it for $100 a month with the option for the MH owner to purchased the property after they finish paying off their MH at the end of 7 years.