Wholesaler · GA · Member since 2020 · 2 posts · 0 votes
I found this property it’s a double wide trailer 3 beds 2 bath and 5 acres, needs a little bit of tlc,
Owners still live in the house, I got them to as low as $63,000 and can’t get them any lower, property’s around that area with the same description sold for 20 to 40 thousand, they didn’t have the same acreage tho, should I proceed with this deal? This is my first time, learning as I go
Investor · Kingsport, TN · Member since 2016 · 412 posts · 254 votes
6y
double wides can be tricky because of the debt portion. They can only be financed if the home is on a solid and permanent foundation. Also, they tend to be very hit or miss on resale. Sometimes they move quick, sometimes they'll sit for 6 months.
If you meant similar properties are only selling for 20-40k total, then no. That's a very bad deal. If you meant that they are selling 20-40k more, than its still not a good deal.
This reminds me of a house I saw on eBay. The seller said the house had a $15K tax lien and it required about $15K in rehab costs, which likely Meant it will be $25K in rehab costs. The houses in the area sold from 40 to 50K. Meaning, that even if you got the house for free, it could be a terrible investment if everything doesn’t go smoothly, and it likely won’t. It might be good for a millionaire that has to take a loss for tax purposes but the house was essentially worthless, at least in my eyes.
Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
6y
5 acres is a lot of land. This sounds more like a land deal rather than a mobile home deal (at last from the seller's perspective). Realistically, it osunds like he is asking $45K for the land and $18K for the home (which is consistent with the $20K to $40K sale prices of MH's in that area). Whether it makes sense as a land deal seems to be the operative question here. Does it?
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
6y
@Brian J. You may want to get some more information from the seller regarding why they want to sell in the first place. Also, check with them to see what their timeframe is for selling. This will give you an idea of their motivation and when exactly you can buy the home from them. If the owners are still living in the home, you'll have to find out what their plans are for moving, when they are moving and where they are moving to. Do they have a plan? Or are they just fielding offers...with no plan?
If they are truly motivated to sell, then "yes" you can begin the negotiation process. If the price of the mobile home with the land is higher than what you've found, you'll have to show them your market research and see if they're willing to work with you. If not, they may not be motivated to sell. Or if they owe more on the property if there's a loan in place and they are wanting to pay it off.
Get some more information from the owner. It'll help you make more of an informed decision. Hope that helps!