Mobile home analysis

[Jonathan V.]

http://s263.photobucket.com/albums/ii132/bigbadjonv/Mobile%20Home/

A home in my area I was looking at, any comments on repairs I may have missed are appreciated. 1999 16 x 80 3 bed 2 bath.

1. No A/C Unit (Not necessary to put in, could let owner can do it)
2. Hot water heater not connected, and probably needs replaced.
3. No washer/dryer (again owner could do it)
4. No stove (again owner)
5. No refrigerator (owner)
6. Skirting on home (owner will end up paying for it, I'd have to front it though per the park)
7. Drywall work is obvious (I'll do)
8. Floor in master bedroom was kind of weak, if you look at the pictures, there was a square patch of carpet that looks like had been cut up.
9. Carpet throughout has to be replaced (I'll do)
10. Behind the back of the bedroom door, it looks like someone's stolen the breaker box, hopefully that's all thats missing, but I can't tell.
11. There's no wheels, which since the place has to be moved, is something I'd have to do.
12. One cabinet needs to be replaced but the piece is in the kitchen.
13. CLEAN the walls, it's been vacant for a while and it's gotten really really dusty/dirty from a window that's been open.

Now it has to be moved like I said, but the place I'd be moving it to is an A+ park. I've actually called about four homes that were for sale in the park and they've all sold in about 3 weeks for all cash. The cheapest one I've heard of selling there was for $15k cash, the most expensive was for $28k. (Both the 15 and the 28 were 3/2's singlewides) The park is paying $1,200 for the move, underpinning, etc. the rest I cover.

The home is listed at 9k and the seller is very very motivated.

[Account Closed]

My first impression is that there is a lot of downside potential here and quite like your profit will be thin and it may take you several months to accomplish repairs, move and sale.

In my area to move a mobile a short distance will cost a minimum of $5 to $6,000. Not sure how far you are moving this mobile home and what kind of obstacles may be in the path of the move.

Have you gotten a couple of people to take a look at what your potential repair costs might be? It would seem to me that without any appliances the home will be less desirable and or may take longer to sell.

Do you know any details about the home that did sell in the park? When repaired what value might produce a quick sale?

Seems like a lot of moving parts, time, money with a thin safety margin for your investment.

[Joe Pitrolo]

i probably wouldn't offer more than 5k. Looks like 7 to 10 k to move and setup, repair.
You can always ask the park owner for a few months free rent while you repair.
There is another post I started about Mobile home sources and one post mentioned wholesaleing or 3 or 4.

[Jonathan V.]

Thanks for the replies. Here is another analysis for everyone.

I'm afraid I'm getting too hung up on wanting to buy in the nicer parks in the area. I just don't think I'll be able to buy one in those parks for cash cheap. That being said, I'm really starting to learn how to value the parks in the area. For instance:

1 Star- Crappy homes, not safe area (possibly gangs)
2 Star- Crappy homes, but safe
3 Star- Decent homes, but mostly older and probably safe, little out of the way.
4 Star- Decent homes, safe, close to town
5 Star- Nice homes, safe, close to town

Here's another I went to see today, 2 bed/2 bath 1989. A/C Unit is 1 year old, the bathtub is fairly new as well. She's put plywood down in both bathrooms and the kitchen.

It's in a 2 star park at best, a lot of homes that are really really run down. She's asking $5,000 for it. She's had a sign up for a month and only had three people come into take a look at the place. But it's at the end of the park so there isn't a lot of traffic for people to see the sign.

http://s263.photobucket.com/albums/ii132/bigbadjonv/Rolling%20Hills%20Properties/

I told her I'd probably be able to get $3,000 before repairs being deducted because she just wouldn't quit asking me for an offer when I tried to say I'd prefer you to be able to sell to someone else before me, because I can't pay as much as someone who would live in the home. (Of course I'd already told her that I buy and sell)

Things of note in this one. Roof is in pretty rough shape, the outside also needs cleaning pretty badly. Besides that, the cabinets in the kitchen and in the bathrooms, the doors are breaking apart because of the home settling. The park is very hilly, which I'm sure doesn't help the homes in the area with settling issues. Also skirting is needed.

[Marilyn A.]

I see you survived tax season and jumped right back into investing. I bet you're tired!
I hear you on the parks. I drove through one today that was so bad I wouldn't even stop to look at the home for sale.
I know I won't be able to get in a nice park with my measly amount of cash. Oh well. I don't have to live there, do I?
On the MH:
When I saw the first few pictures I was thinking "this is nice!" but then things got ugly with all the water stains and the cabinets.
At least she sounds like a very motivated seller. I bet you can get a great deal. Maybe consider selling as a handyman special and not doing the repairs? Well, maybe seal the roof.