Mobile Home - Deal Analysis: High Lot Rent? Good deal?

[Swat Khan]

Hello BP!

Just wanted say I love this forum and I wouldn't be where I am now without it!

I got a lead on a motivated seller for a MFD home in a B- to C+ area. This is going to be a Lonnie Deal.

Specs:
- 1970s 18x56
- 3 bed/2bath
- New heater (2011), New A/C
- has wood flooring in living and kitchen. Carpet in the rest of the house.
- Repairs: needs new carpet and fresh paint.
- Lot rent: $1073
- With utilities bills come out to: $1225 (this is in the middle of the summer)
- Lot rent has been paid until the end of the month. So I can try to sell the home by Aug 31st without paying any lot rent.

Other info:
- Motivated seller, just bought a home and needs to move by the end of the month
- Owner lived in unit for 22 years, bought in 1990
- Park has a pool, a rec room, and playground for kids. Park owner expects you to sign a 5 year lease.
- Market rent for 3 bd/2 ba is $1400-$1800 in the area.

- Buying: He was asking $4000 and I offered $2500
- Selling strategy: owner financing to a buyer, $2000 down, $250/mo mortgage for 72 months.

Questions:
1. Does the lot rent seem high? It's $1073. Will this hurt me in the long run?
2. Is my offer too high?
4. Anything else I should consider before jumping in?

Thank you in advance for all the help.

[Sabrina Laplante]

This is another reason why I do not plan on investing in any mh's in my own state of California, because of the very high lot rent. My theory is, why would I buy a mobile here with high lot rents, when I could buy a ton of them in other states where the lot rent is around $250 or so. Also, had you previously put up any test ads to see if you could have sold it easily or not? Hope you find anohter deal soon, but with much lower lot rents! Good luck my friend!
Sabrina Laplante