Advice on this land mobile home deal!
Hey BiggerPockets,
I am a beginner mobile home investor and have recently encountered a potential mobile home deal. It is on land and I have never done a on land mobile home transaction before nor do I have any clue what to offer or how to structure this deal. Any advice or comments would be greatly appreciated!
I have included a few pictures. The home is solid I checked for soft spots. I checked under the trailer this past summer, the furnace works, has w/d hoop ups, hot water heater installed a couple years ago and has a solid roof. It does need some work but mostly cosmetics
Here are the property details:
Purchase price: Owner doesn't have one
1987 14x60(singlewide)2/1
rehab cost: 2-3K
owner holds a current mortgage with a remaining balance of $18,600
fixed rate at 6%
PITI:$400
property tax: $588
Land value: $18,900(sits on a double lot for a 9,000sq/ft lot)
Building Value: $22,200
Projected rent: $850/month plus utilities
Comps: It sits in a neighborhood of mostly doublewides and modular homes so my comp pulls were insignificant
The seller is not overly motivated. She wont give me a purchase price. She just wants to hear my offer. The property is currently vacant. The owner lives 3 hours ago and is toying of the idea of fixing up the place and renting it.
With the owner holding a mortgage and the trailer being 30 years old and in need of repairs I am having difficulty writing up a offer on this. The owner said she was open to an owner finance deal. I was thinking I would ask her if her loan was assumable or have a owner finance deal for the remainder of the loan and give her 5k cash at closing.
What are your thoughts about structuring this deal? Any advice would be greatly appreciated!