Should I Buy This Manufactured Home?
HI,
I have the option to buy a lot of land for $20,000 in California. I have contacted a manufactured home dealer, that says he can put a 3 bed 2 bath 1030 square foot home on the land for $120,000 (total cost including the initial $20,000 for land), and that includes all fees. He says he does it all the time and there should not be any more fees involded. The lot next to this one has a 2 bed 2 bath MH on it, brand new for sale at $150,000.
Should I go for this Deal?
To me it looks like a winner, but any advice would be greatly appreciated?
Thanks in advance
[ Edited by unomateo on Date 05/03/2004 ]
Are you reselling it, living in it, renting it, holding for long term, holding for short term, etc?
What are your plans for the MH.
Brenda
Since I am new to the investor game, I would like to resell it, as soon as the MH is built, to make a profit, but if renting it is a better Idea, I can do that also.
I have the cash to pay for this, which I think is best if I resell, and to my understanding, I should finance it, if I decide to rent it.
Thanks for the reply
From my own personal experience with manufactured home dealers ... you must have the dealer provide you with a breakdown of all costs and fees (home, improvements, county fees, utilities fees etc). You should be informed of what contractors are being scheduled for your project.
Ask for past clients and references to comfirm that this dealer will match what he is telling you verbal. Talk to their past clients and observe the quality of the workmanship at the clilent's home.
Also know exactly what model and features that the dealer plans to place on the land.
Have your purchase contract state a time period when stages should be completed and the final project completed. When you obtain a construction loan for this project ... after the initial 90 days of the construction loan time ... the lender will charge you "extension fee" and "penalities" for the final loan taking longer than 90 days.
Example on my project::
1. Project delay: Land purchased in May 1999 ... Home finaled in January 2000 (8 months !!)
2. I paid penalities and extension fees amounting to $2,500 per month because of the dealer's delay.
3. Dealer used contractors 100 miles away from Yuba City and Stockton and the project was in Foresthill (by Auburn). The deck contractor barely worked and caused the major delay. Finally I protested and with an attorney I selected another deck contractor that finished the work in 5 days versus months with the dealer's contractor and his work failed county inspection with 8 citations !!
Cheryl Lopez
My buddy just bought a manufactured home to put on 20 acres he bought a couple months ago for vacationing. The one he bought was a model, so he didn't get to choose colors and things like that, but get this - It's three bed, two bath, 1129sf, includes septic system, well, and propane tank installation, electrical hookup, bottom line $59k plus change. All he has to do is pick up the keys at the dealers (haha, "dealer"
office. I don't know much about these things, he said it's better than the others he's looked at. Can't beat the price. My point, shop around, you might be able to get the same thing for less. Z
Thanks, thats great advice
I will definitly get a schedule and a list of all fees.
Do you still work with Manufactured Homes, or did you decide it was too much work?
Zach- That is cheap, this one is a 3-2 for $54,000, but with all the construction fees and delivery costs it comes to a lot more. I would be so happy to find one like your buddy, just gotta be lucky, I guess
$100/sq ft for a mfr home is rather steep. You should be able to build a stick and glue house for about $60/ ft. Is the land deed/ zoning restricted?
pcglobal- I do not know if the zoning is restricted. Where would I found out that information?
I don't know about CA. but I buy mobile homes at foreclosure dirt cheap. I recently bought a 16x80 99 model for $6500 a 14x70 99model for $5600.doublewides 2 years old cost less than $15000.Call your local lenders that finance mobile homes,ask for dept that handles mobile homes. I use Greenpoint (Bank of America)