SW MH In Park Needs Major Rehab For $500? Is This Good Deal
Okay, never posted to this forum but have been reading lots on here and I have a question regarding a deal.
Single Wide Mobile Home in bad repair. I can get it for $500.00 plus pay back space rent of $800 and fees. I am a Realtor so I have access to comps which range from $19,000-$40,000 for a single wide. This one is about 720 sq ft 2 bedroom in a small park with all owners, no renters. My questions is would this be a good flip? I will tell you I have never flipped a property but have helped many clients to do so. The space rent is $400.00. Im thinking my total rehab investment would be $2000.00. Is there something Im missing. Besides the transfer fees and taxes. How much do you spend usually on a rehab of a mobile home, if you do?
How much is lot rent?
[addsig]
Thanks Tom. This information was helpful. I still have lots of worrying to do, eh? Reducing the price may help. I hate renting, because I had $3500 worth of damage to another home due to a destructive renter. Took out a judgment, but what good is that? I am not having much success with the real estate business. If anyone else has suggestions, I would love to hear them.
"Deals on Wheels" by Lonnie Scruggs, available on this site, is the bible on the subject.
I am primarily a rehab investor, but I have recently started to look into the MH market because of all the demand for affordable housing.
With prices where they are, the manufactured home market is getting very lucrative.
I bought a MH property in February, and only paid $21k for the whole thing. Buy my big interest is in the land, not the home.
If you can buy the property for the value of the land, then you have a ton of options. You can replace the home with a brand new manufactured home, or sell the trailer and lease the land.
There are a few ways to make them work. I actually just removed the home that was there, and I just put a 1400sqft manufactured home on the lot for ony $70k.
Now Im going to sell the whole thing for about $160k and net close to $40k. And best of all, I dont have to deal with any contractors because the home dealer handles everyhting for me.
And because its a new home, my buyer will qualify for all the HUD and FHA requirements and get all the first time home buyer incentives.
Its shaping up to me my main focus for a while.
John
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ADVERTISING REMOVED[ Edited by JohnLocke on Date 12/11/2006 ]