Doublewides in parks?

Question

I have a lead on a doublewide in a nice park. The home is a 1996 doublewide and after a few repairs it would cost 18k (about). I have a singlewide rental in this park at $775 and sold a 2/2 for 10k last year. Lot rent is $345.

How much of a premium do you guys find doublewides sell for? Is 30k financed way too much? What length loans do your buyers seem comfortable with?

I have hardly ever seen doublewides in parks so I am not sure what the market is.

thanks

Russ Wallace · Answer

Eric, I manage the remodeling of rental mobile homes for an investment group. Based on prior experience as a residential contractor (and an extensive spreadsheet of interior/ exterior parts/supplies) I believe the following to be accurate. An asphalt shingled roof can be easily stripped above the damaged ceiling area however the water could be getting under the shingles up-roof from where it's shown-up inside. A "sure repair" may require removing ceiling drywall and locating the leak on the underside of the roof sheathing. Estimated cost of roof/ceiling repair $1000. Window cost depends on size; 30x54 six light vinyl frame with screen will cost ~ $200; install cost ~ $100. I wouldn't put carpet back in it; laminate wood grain will cost ~ $0.77 SF and 12' wide tile pattern vinyl sheet ~ $0.49 SF plus installation. 30x80 interior door slabs: smooth hollow primed $44; six panel hollow primed $54; either will require cutting/installing the lockset and mortising for hinges (handyman work). I would buy a used fridge, stove and dishwasher (check the space dimensions) on CL for ~ $250 each. The handyman doing the roof repair should be able to prime/replace the rotted fascia boards too. If needed, a new Goodman 2 ton (not sure of house SF so larger unit may be required) 13 SEER HVAC complete system will cost $1500-$1750 plus install.

Mark Hull · Answer

@Eric F. Hey Eric, it may be worth putting a low ball offer in that will make your numbers work?  You never know they might take it?  or down the road when they really need to sell they may remember you?  just a thought?

Jerry Lucker · Answer

Eric,

I get financing for doublewides of that age all the time. The lenders I deal with like to see a value of at least $20,000. The buyers can choose up to a 20 year contract.

Eric F. · Answer

The home was in a lot worse shape than I was expecting. The seller "understated" the extent of the damage. I made a video but I am an idiot and held my phone the wrong way so it is a bad vertical video.  https://www.youtube.com/watch?v=2laJBQTfzyg&featur... This is my first ever youtube video, next time I won't do the vertical shot I promise.

The work needed:

• Replacement Roof (he said maybe a patch or two but every room has signs of a leak
• New window
• Ceiling has several moldy spots and one part where the ceiling has a hole in it
• New carpet + paint and patches. 
• 3 new interior doors.
• New appliances
• Replace rotten fascia boards
• He says the heater and AC "probably work" but I would be surprised to be honest

I am estimating probably 12k, but I am not sure. The mold/ceiling condition scares me the most.

Has anyone dealt with those issues? I am going to pass unless the guy will drop his price like 70%.

Mark Gruetzmacher · Answer

Eric yes those are in parks.  You don't come across a lot of stuff on their own land out here and if you do it Is expensive And the land size is usually 3-10 acres.  Someone actually has a 1973 that was redone but still has the metal siding and they are wanting 20k.  I can't see how they will get it but who knows.  I am partners on a 1997 16x80 and we are going to rent it but ifor sold I think the low 20's is a good starting point while the partner thinks upper 20's to low 30's.  There is no way I would sell it that high.  Just don't think it is right.  But that's me and my market.

About financing yes I know people still do it.  I heard some people mention that you should try to have your investment back in 1st While others say more.  I don't think I would be doing 7yrs though.  Maybe John will chime in in that on.

Eric F. · Answer

@Mark Gruetzmacher are those in parks? I am willing to finance it myself, I know the new laws are a pain but you can still do it.  I will make sure I do everything right.

Anyone who finances it, what lengths of loans do people seem comfortable with? @John Fedro says he will do 7+ years, which would keep the payment + lot rent below the local apartment rate.

Mark Gruetzmacher · Answer

@Eric F. depends on your market.  A 96 doublewide here for 18K after repairs would fly down the road.  Singlewides of that year are selling over $20 in my area so I would think a doublewide would be worth a decent amount more.  Depends on your market again.  The issue I think is the selling part.  People can't really get financing on these places and most people don't have cash.  If you finance it your self to them then you are going to have to take caution regarding Dodd Frank and the SAFE act which has pretty much put an end to owner financing things to owner occupants.

Doublewides in parks?

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