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Updated over 8 years ago on . Most recent reply
Mobile Home in Single Family zoning neighborhood
We are considering buying a SFR for the land. After tearing down the building, a double wide will be placed on the land for rental.
I believe neighbors won't complain given that
1. The exisitng building is pure eye sore.
2. The neighborhood is working class with old houses.
3. Double wide will be property decorated and landscaped.
Does that sound feasible? Where should I contact to verify my plan, such as city agencies or...?
Thanks for any input. Many thanks in advance.
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- Rental Property Investor
- Clarkston, GA
- 1,918
- Votes |
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Jeffrey did a great job re zoning and MHs!
Only adding my 2 cents re costs for others who trip onto this thread.
Folks will need to adjust my prices per your area but in general I've seen the un-experienced but too HIGH a value on a used mobile home, even double wides which can be as nice as a house.
You have to start with the end price, the all in price and subtract off costs to arrive at what is left over to pay for the used home.
For various reasons either as a rental or as a retail sale with profit built into the sale price your all in costs need to be at $35k. Land, hauling, septic, utility hook up, home, rehabbing, every thing for $35k. That sounds low but that's our business rule for the 20 double wides we've bought into our rental portfolio in GA. 2000 or newer home, 1 acre usually land etc etc. We've NEVER assembled the pieces into a finished home on land because it's just too expensive. It's cheaper by half to buy REO / from auction.com than to buy the pieces.
Septic; figure $10k at retail pricing unless the lot has a septic.
Water / power no idea. Depends if utility pays or you pay.
Permits. Don't forget that even if land use allows moving a home there, there are still permits and inpections to get. Love those inspectors. In the end you need an occupancy permit.
In the end you'll need to buy the used double wide for $15k or so. Which for a 2000 or newer is low. I would consider a top shape mid 1990's but it would need to be PEX piping, double windows (not single pane), good shape tubs (not cracked) and good roof. No need to do all this and to have to put on a $3k roof too.
Hauling within same state lowest i'd guess $6k
Skirting, sewer/utility hook up at least $1k
Check your code to see if you need a cement pad under the whole home or just block piers? I've only heard of cement pads in parks under single wides. Doubles that I've seen / heard of are on block piers over dirt. Add block perm foundation (better way to go) or metal skirting. If you put a block perm foundation around the edge you have a better chance of selling this home to a buyer who can get bank financing. Banks like perm foundations vs skirting.
Most of my double wides on land have block foundations around the edge and I'm working to retire the home title so the home is fixed to the land as it is with a stick built home. This eliminates the home tag tax issue. You just pay real estate taxes on the "improved" land.