replace HVAC or not?

Question

I recently looked at a 1996 singlewide MH and found out from the neighbor the HVAC unit didn't work. I deliberated too long about what to do about the problem and the unit sold before I made a decision so now I have some questions about how you all would go about the situation.

The asking price was 5k. Most of the people in the park were paying about 350/mo for just the house so at 16% int and 48 mos gives a price of ~12,500. My HVAC quote was about 3k for new A coil/heat pump/condenser installed. I would've had about 7-8k into this house if I had bought it and put in new HVAC so my question is would you have: 1. put the new HVAC system in and increase the # of years of the note for a higher price 2. put window units in and charged around 12.5k or 3. not put any money in and just sold it as-is for a cheaper price? Also, what percentage do you require as a down payment? Is it reasonable to expect to get atleast 5k down from a buyer if I offer financing?

Joel Owens · Answer

Scott definitely a lemon deal. Be happy someone else bought the dud.

I don't own mobile homes but my mom's friends have owned 50 for about 40 years.

With anything the total cost affects returns.You will find a better deal.

J Scott · Answer

It really depends on the area, the contractor, the brand and the size of the unit. For example, a lower-end 1.5 ton unit (furnace, condenser and coil) that should be big enough for any mobile home, installed by one of my contractors, would run about $3200. I could get a 1 ton unit (probably also big enough for a typical mobile home) for about $2800.

So, in my area and with my contractors, his quote isn't off at all. And knowing prices in many other areas, I don't think this is unreasonable in many parts of the country.

But again, it's going to differ based on several factors and getting several bids is the best bet...

T Dad · Answer

Quote looks too low. I changed mine AC and furnace for nearly $8,000 and its not even an high-end class.

Try call a few contractors to compare the quotes

Also you can check what others are paying for getting new AC/furnace at NC area.

http://www.hvac-cost.com/search?Zipcode=&City=&State=NC&Year=&Brand=&Type=Furnace

Scott C. · Answer

Yes the quote was for all new A-coil, heat pump and condensor. I believe the quality of mobile home HVAC are not the same as SFR so thats why it is cheaper. The walls inside of the home were trashed, but the whole inside was repairable for about 1500 in materials. The lot rent was 250/mo, putting payments for the new buyer at 600/mo total. I should able to sell all day long at the terms i mentioned above so my holding costs wouldn't be more than 2 months max, so I guess the real question I was trying to get at is whether lengthening the terms of the note to say 6 yrs to get a higher sales price outweighs the increased risk of default by a mobile home buyer. I wouldve had about 8k in the deal including EVERYTHING (repairs,utilities, holding time, taxes, transportation costs, contingency etc) but i felt putting in 8k and selling for 12.5k (350/mo @16%, 48 mos) wasn't a wonderful return. 12.5k sales price was with repaired walls, new HVAC system, new paint, but not replacing flooring and several soft spots in subfloor. I might have tried to strengthen soft spots from underneath, I don't know how difficult this is in a mobile home. I didn't want to put more than 8k in it cause I can find other properties in better condition for that, which are also closer to me.

Just Don · Answer

so was this both heat and air? 3k seems cheap for all new everything. or just putting new air in existing heat unit?

I think either way you would have to fix it to sell. People just cant fix stuff on there own any more. Are there ANY more repairs needed to be 100 per cent move in condition???

How much is lot rent? Both for new buyer to pay,,,and holding cost for you?? Other holding costs? Or utilities?

Guess in the future you have to be sure of present and repaired values, repair cost estimates and be ready to pull the trigger.

replace HVAC or not?

replace HVAC or not?

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