Manufactured Home Flip - Feedback Please!

[Neil K.]

Here's the situation:

Looking at a 3 bd 2 ba manufactured home (2007) as a potential flip.  The home has a brick foundation, large 2 acre corner lot, and is in a quiet neighborhood not a park.  The house needs some minor cosmetic updates (removed carpeting, patch walls, trim work, cabinet doors, linoleum) and possible a  new HVAC system ($4000).

Seller is asking $50k, and a move-in ready comp down the road recently sold for $89k in 2 weeks.  The plan is to acquire property for $45k with conventional mortgage, put around $10k into it, and resell for $89k in a month or two.

Any thoughts on this plan?  problems with flipping manufactured homes in NC?  Any feedback would be greatly appreciated. Thanks!

[Rachel H.]

@Neil K. You may want to also check out the plumbing and hot water heater. Not sure how long they last but hot water heaters tend to go out after a certain period of time. Have the roof checked out too. Ask if there's been any work done on it over the years. If metal, you should be OK. Just need to make sure it's sealed. If shingled, make sure there are no missing shingles or deterioration on the top which may be addressed down the road. Regarding your exit strategy, you may also want to line up a few lenders who can assist if you find any potential buyers for the flip. Your local mobile home dealership and manufactured housing association may have some referrals. Have an exit strategy just in case things don't pan out with the flip. Interest rates have started to go up. You can never be sure of the lending situation in the future. Hope that helps!