I need some advice on mobile home purchase

[John Barbieri]

Thinking of purchasing an old mobile home located in a mobile home park. The price was $2,800 and I should be able to get for $1,500 to $1,800. The park honestly is sketchy at best and seems to be worse as you get further into it. The home though is the second one in, inside is in pretty good shape, Will need fresh paint and a few other minor upgrades. Will need a refridge and oven. Lot rent is $280 per month. Not sure if we do the minimum and try to rent it out, or try and do a sale with seller financing. What should we be leary of? Thanks guys!

[John Fedro]

Hi @John Barbieri

Welcome to BP! We're glad to have you here.

Thank you @Joel Owens for the great shout out! I hope I do provide value for everyone who needs the help.

Concerning your question John this deal can really only truly be known by doing it an looking back to say where it was right or a wrong idea. With that said let me fill you in on some points I have learned over the years.

To many of us that have never lived in a mobile home park we have different degrees of "sketchy". If the park looks or is filled with gangs and drugs it is likely a good idea to avoid this park. You can tell a gang park by crimes in the area, gangs standing outside at night, and even mobile homes spray painted with gang tags. Have you met any of the neighbors? It is a good idea to talk with them and get their opinions on safety.

If the parks is merely run-down with bad roads, poor lighting, old homes - however the people are clean, honest, and hardworking then it is not our jobs to judge where people choose to live and we can still make a profit here. Does this make sense?

I would advise you to stay away from renting a mobile home in a park, if the park will even allow renting. You will want to sell and collect monthly payments from your tenant-buyer. There are new laws restricting this so be careful with your paperwork and process. Selling to a honest, hard-working family, with no past evictions will make your life much much easier in the coming months and years with regards to this home.

If you are purchasing the home from the park negotiate a few months discounted or free lot rent due to repairs needed to the home. If buying from a seller aim even lower than the $1,500 you suggested.

There are many other things to consider such as the area, beds and baths, resale numbers, other homes for sale, etc however without seeing pictures the price sounds right. As long as the park is fair and not just about the money, and of course safe then you can likely sell quickly for an attractive price and make a profit.

Let me know if you have any other follow up questions. I am sure others will chime in with great advice here too.

All the best,

John Fedro