Need Some Help With Manufactured Home Sub 2
I would appreciate a bit of help if possible. I have the opportunity to take over a 1 year old, large 4 bedroom manufactured home with a garage in Pheonix Arizona. I have never dealt with manufactured homes, and am unsure how to do this. I Sub2 houses all of the time, but I know something has to be different about manufactured homes. Also, how much do these things cost new? These people have a mortgage of 163k on their home, land and garage. It is a very nice one, but that just seems high for a manufactured home. Anyway, if someone could be of assistance, please let me know. Thank you in advance.
In Oregon you must have MH attached to stemwall for real property status and apply for a waiver to the DMV. THen it is titled as "real" property.
Lonnie Scruggs will tell you about the rest.
As for value and $$, I know plenty of dumb millionaires. I have some close relatives that fall into that category
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"opportunity" ?
Sounds to me like the S is the guy thinking he has the opportunity to walk with maybe YOU on his hook.
If you'll start MH shopping you'll discover you can buy a very nice DWMH for way less money, and you'll find some real oportunities.
My advice: Don't touch a $160,000 MH, unless the land it's on is the deal and the MH is just happening to be sitting there.
This deal just cries out "Greater Fool Theory", and I think you don't want to be fool #2.
[ Edited by miraclehomes on Date 07/17/2004 ]
If you’ve done Sub2s—presumably with, e.g., 2 year refi balloons when you sell them--then you know there may be issues with the banks and their inspections/appraisals when the time to cash you out comes. It isn’t really your problem once you sell a Sub2 home—since you’ve sold it warts and all—but your buyer may encounter problems which make it harder for him/her to get the refi. An example: here in MN, all MH homes must be installed on frost footings—expensive to retrofit—to pass inspection and be eligible for FHA money. Not that frost footings would be an issue in Phoenix (or that your buyer may even need the FHA involved in the loan) but it’s a potential complication of which to be aware. Might want to ask about FHA requirements for MHs in Arizona.
miraclehomes,
OK, lets get over the good buy bad buy thing.
I have done Subject To deals on manufactured housing in Arizona, so my first question is this "real property", which the paperwork on the property would be worded thusly "land description and manufactured home situated thereon"?
This means that the mobile and the land have been converted to real property, so the loan on the property covers the land and the unit.
If it is real property then it is no different than any other subject to deal, the existing loan stays in place and you sell with your chosen method.
I do agree that when manufactured and land are together they do show appreciation in certain areas of the country and and can be re-financed or financed just like a stick built house.
John $Cash$ Locke
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loon,
There are inspections done on Manufactured housing when they are installed on land in Arizona. There are codes that must be adhered to and signed off by a building inspector.
As far as frost is concerned in Arizona the only place you will find it is at your local "Frosty Freeze" and it is about $1.25 for the cone.
Wherever you find sun and fun, the rules are a little different, so what is that white stuff up where your are called?
John $Cash$ Locke
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If anybody took anything I said as a personal attack, they took it wrong.
Absolutely no attack or insult of any kind was intended and all I was trying to get across was a warning.
I see & have almost fallen for similar deals, but have learned to be so leary of MH dealer's deals that I almost run from taking over any dealer's note...even when it might be a great opportunity...knowing that MHs are priced all over the map, and I see nice DWMHs all the time from $7500 up.
Please accept my apologies if I've offended anybody here.
JohnMerchant,
Your input to this board is invaluable, so your concern for this posters well being in doing a deal was done in the context of keeping him out of "harms way".
I was just thinking I have not invested in dirt for quite awhile, however I just saw where the BLM auctioned off some acreage in Las Vegas. $279K per acre was the going price. Some one bought 1/2 Billion dollars worth, must have been someone on this board, come on John what are you going to do with it put manufactured housing on it?
Also, remind me to tell you some time when I purchased 20 acres at Flamingo and Durango in Las Vegas when it was $1K an acre. Of course then it was rocks, cacti and jack rabbits. Just didn't seen worth the $20K I paid.
John $Cash$ Locke
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Here is a thought that I had:
If you already have a T/B for the property that is great! But what happens if they don't end up purchasing the home. Are you going to be able to easily find someone else?
Just a thought. GOOD LUCK
Ask the owner for their paperwork on the property and the note. This should tell you if you have real property or a vehicle title.
As the man on the ground you are informed as to all the other aspects of a Sub To deal.
I am curious however, do you use land trusts with your Sub To? I see an even mix of those that do and don't.
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I don't- but I am starting to put them 4 or 5 at a time into LLC's. I'm trying to go legit. I all of a sudden had over 200 properties and no LLC. I'm glad I have a good attorney.
Wow! quite a feat!
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