1 at a time, buy a lot and put a MH on it and sell

[Clary Roberts]

Good morning from Sedona, Arizona home of the most overpriced properties in Arizona.

A manufactured home up here is typically on a 0.25 acre of land and sell for around $105 per square foot for an older model....close to $140 pr sq ft for a newer model.

I am considering buying a lot and putting a newer manufactured home on the property and selling the package.

Just found this forum and am hoping I can find someone who's doing this now or has recently in an expensive area like Sedona and could offer pointers, pro's and con's, and maybe even find me or help me create my own spreadsheet to estimate expenses and track budgeted vs actual expenses.

There are few lots up here that allow manufactured homes, so an option may be to buy one with an older model on it and replace with a newer one.

I hope I can find help here or get some guidance on where to go to connect with like minded individuals.

Would this be considered MH developing?

Thanks in advance for any comments or suggestions you may offer.

[Paul Ewing]

I am doing a version of that, but in a much less expensive area.  Are you looking at improved lots or bare ground?  I have looked at both and am currently in the process of putting two early 2000s doublewides on bare ground.  I may pick up a one acre improved lot soon and put a single or small double on it later if I can swing the cash after I am done putting these in. 

I'll start with the easier and possibly less expensive option first.  That is buying an improved lot.  This will have some type of sanitation either sewer connections or septic system, water well or metered lines, and an electrical drop.  Theoretically all you need to do is move a new MH onto the lot and hook up the utilities.  More than likely you will have some jerry rigging to do because the connections on the new MH will not be in the same place as on the one that used to be there.  Water is easy to reroute and electrical isn't too bad but can get a bit costly since it will be three strands of 2/0 or 3/0 wire at $2.50 to $3.50 a foot.  Sewer can be more of an issue since you have to make sure you have the proper angles for efficient waste flow.  Over all you should be good with a week or so of delays getting everything set up and maybe a thousand or so in costs.  Also figure on skirting for the MH.  I am looking at $1000 or so for metal r-panel for mine since vinyl doesn't last worth %##@. 

Setting up on bare ground is easier in some ways because you can pick the exact spot you want, but can get expensive fast.  You will need to get all utilities installed and hooked up.  Around my area of North Central Texas, a standard tank based septic system is $2500-$3500.  Water taps for the community water system are $1030 to tap the line and install a meter if the line is on your side of the road.  Add another $1000 if they have to bore under the road.  Twenty foot electrical meter pole installed by the Electric Co-op is $245 (bargin) plus any customer cost share for bringing new lines to the property.  These can range up to $7/ft for line and extra poles.  Add another $800 to $1000 or so for materials for the meter loop and service to the MH.  You will probably need an electrician to do that which will run about four hours at your local rate.  Install of the AC compressor is usually extra so add another $400 to 600 or so for that installation since it is specialized.  Skirting will run me $1000 or so but I am sure you can find something cheaper for a flip.

I hired a dozer guy to build two level pads, a central driveway and two parking areas for my new MHs.  It was 4.5 hours at $100/hr plus $490 for two dump truck loads of road base gravel for the drive.  I think I will be ordering another $245 load for the parking areas.  If you build a pad you will also need to do some landscaping and grass establishment to cover the bare dirt.  I will also be putting in fencing around these properties to keep the sheep and cattle off the renters lawns so that will add another couple hundred dollars but it may go on the farm expenses instead of the rental properties.