Is this worth pursuing? MH in So CA

[Lisa Eckman]

I live in a 55+ MHP in Southern CA.  There were a few vacant lots in my park that recently have had a home added, and are now for sale/sold.  They list for just under $400K (which seems ridiculous to me).  Lot rent here is about $600-900 for the majority of spaces.

I went to an open house yesterday that was done by a MH dealer (not a Realtor).  He showed that the PP of the base mobile home was about 85K plus another 30K in improvements (decking, etc.).  So about $115K total.  He said moving the home and connecting was about 17K - 35K depending.  Again, around $150K.  And they're selling for around 400K???  On top of that you have the cost of removing and disposing of the old home (if necessary), possibly the purchase of the old home (if not a vacant lot).  And carrying costs.

What do you guys think?  These are very rough numbers but seems like this might be a good prospect.  Also, I would consider doing seller financing or LO when selling.  Obviously I would need to do some further checking, especially with the park, but wondering if I am missing anything major in this thought-process and if you think it's worth pursuing.  TIA

[Lisa Eckman]

Thanks Rachel. All good points. Have you done any mobile home deals?