Newbie needs help with mobile home purchase
I have found a 1988 mobile home on .5 acre. It is very rough and probably needs $7,000 of fixing up. It is a foreclosure that the bank has for sale at $22,000, but is willing to take about $10,000.
I have checked some comparables on the same street and found them to be in the $45,000-$60,000 range. (But they may be newer mobile homes, I don't know.)
Do you buy something like this to flip or to rent? I think I could rent it in the $400-$500 a month range. Should I not be as hard on the price and tell the bank that they need to finance it? My credit is in the 690's. Are there other lenders who would take on such a small equity line?
I am new and need help.
Thanks in advance 
John
i am so new here myself, that i probably shouldn't be offering any advice, but here is my impression.
basically you are buying the land. i don't know if $10,000 is a good price for a .5 acre or not, in your area. where i am from, that is a steep price for a .5 acre. you also didn't say if the MH was a SW or DW. i think to put $7000 into a SW that is 15 years old is too much. i wouldn't think you could get that much out of it. now maybe a DW is a different story; again, not sure how the prices in your area run.
personally i look for land to buy. dirt is always a good investment. you could always get the bad home hauled away and buy a better deal and then sell the home and collect a lot rent. dirt pays off!undefined
Thanks HC,
It is a DW. I guess the question is should I negotiate hard on the price and end up paying cash or pay a little more and make the bank finance the purchase?
How would I really know how much this MH could be worth when rehabbed?
Thanks again,
John
Hi John:
I'm new to this site but have bought mobile homes and owner financed. My advise with the few particulars that I know, hold the land, sell the home with financing and rent the land to the new owner. you'll have a locked in rentor (the cost of moving and setting up a DW in Ga is approx 3K). Good Luck
Farris
John,
this is what i would do. if i am off base, i hope one of the more experienced investors will redirect me!
i would nego hard and pay cash for the land. say you can buy the whole package for $9000 cash. then you put $7000 into the home.
i read recently that a MH is worth as much as the buyer is willing to pay.
now you have a total investment of $16,000.
i would try to sell the home for $15,000. take $1000 down and then spread $14000 over 4 or 5 years with interest of course. remember to include some money on top of the mobile home for lot rent. once the mobile home is paid off, remember to double the lot rent, say $200 per month. or if the new owner wants to move the MH, then you are freed up to start all over with another home.
i say go for it. i am looking eagerly for my first deal too. good luck!