Your advice please

[razda]

Here is a deal that I am working on, please give me some advice. This deal is a mobile home (MH) that is partially set up but was not finished so is not in livable condition. Has been on the market for almost 120 days with out much interest. The MH and lot are in a residential area with mostly stick built homes.

asking $70K (initial offer will be $30K)
Built in year 2000 and has 4 bdrm 2 bath and 1,000+ sq. ft

Option #1
move MH to a park, set it up and then sell for $45K+ cash, or lease option it
I am estimating moving cost of $3K - $5K
sell vacant lot for $45K+

Option #2
move MH to a park, set it up and then sell for $45K+ cash, or lease option it
maybe build a house and then sell (have not looked into this one much)

My question is what am I missing? Do you think it looks doable or should I let it go?:huh2:

Thanks in advance

 

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[kurtyordy]

Just so I am understanding, is there or is there not land included with this deal?

 

[razda]

yes the lot is included. I am hoping to sell the building lot separate from the MH. I feel the profit will be better.

 

[kurtyordy]

got it.

find out hard moving costs. In PA, they changed the code a few years back and upped the cost of setting up MHs.

tt parks, not all will allow you to move in.

exit strategy three-

get home livable, rent to own sell it, while also renting the lot to the buyer of the mh.

lot rent= $250 (depends on what you provide)
rent to own= 500/month for 10 years.

Selling ad for you: 4 bed home for sale with owner financing, only $2500 down. Low monthly payment. Stop renting now!

 

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[hakrjak]

Just keep in mind that nobody will be able to get financing on a mobile home in today's credit market. They started cutting back the lending on these a few years back and they have kept on cutting. It's because they rapidly depreciate in value and do not sell on the open market. Even with perfect credit it's hard (And do people with perfect credit seem like the type that would live in a mobile home? Not so much... haha)

Lease-optioning or Rent-To-Own or Contract For Deed with Owner Financing might be your only options to move it. Then if you have to repo it in 5-10 yrs, it may be worth a heck of a lot less than it is today.

Cheers,

- Hakrjak

 

[razda]

got it.

exit strategy three-

get home livable, rent to own sell it, while also renting the lot to the buyer of the mh.

lot rent= $250 (depends on what you provide)
rent to own= 500/month for 10 years.

Selling ad for you: 4 bed home for sale with owner financing, only $2500 down. Low monthly payment. Stop renting now!

kurt, this is an option I had not given serious thought to, however I do like the idea of charging lot rent for the lot. Thanks

Just keep in mind that nobody will be able to get financing on a mobile home in today's credit market. They started cutting back the lending on these a few years back and they have kept on cutting. It's because they rapidly depreciate in value and do not sell on the open market. Even with perfect credit it's hard (And do people with perfect credit seem like the type that would live in a mobile home? Not so much... haha)

Lease-optioning or Rent-To-Own or Contract For Deed with Owner Financing might be your only options to move it. Then if you have to repo it in 5-10 yrs, it may be worth a heck of a lot less than it is today.

Cheers,

- Hakrjak

hak, though I was aware of the difficulty financing a MH in a good real estate market I had overlooked it. The same for the rapid depreciation. Thanks for reminding me.

 

[BFLKiddo]

Be very wary of the financing on both ends. Your purchase of the mobile home and lot, as well as the selling aspect...will people be able to get a loan to puchase it from you. If you have the cash available to buy it outright you have many more options. Not sure how it works in PA, but make sure that the moving cost includes the set up cost, and permits. If you have the cash to pay outright, I would just finish setting it up, and sell holding the note with a good interest rate, at market or a little above market value.

 

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[AroundTheWorld]

Just keep in mind that nobody will be able to get financing on a mobile home in today's credit market. They started cutting back the lending on these a few years back and they have kept on cutting. It's because they rapidly depreciate in value and do not sell on the open market. Even with perfect credit it's hard (And do people with perfect credit seem like the type that would live in a mobile home? Not so much... haha)

Be very wary of the financing on both ends. Your purchase of the mobile home and lot, as well as the selling aspect...will people be able to get a loan to puchase it from you.

I hate to sound like a broken record, but it is worth mentioning.

Get to know your local bankers!! They are still lending on stuff like this. 2 months ago, someone got a loan from the bank to purchase a single wide from us. That person needed to purchase the trailer because they were getting foreclosed upon.

Local banks are lending.

Also... I Strongly encourage you to SELL THE TRAILER - - even if you carry the contract. SO much better than being a landlord on an "asset" like a trailer.

 

[BFLKiddo]

I second what AroundTheWorld mentioned.

By the way I hope all is going well.

 

[razda]

Thanks, for the replies. My original thoughts were to move the double wide to a park, set it up and sell it seperate from the lot but leaving it where it is and finishing setting it up seems to be less money. I could still sell it on a lease option/owner finance. You have given me things to think about, which is exactly what I wanted when I started the thread. Many, many thanks to all of you.:thankyousign:

 

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