Palm Springs CA market

[Gabrielle Simmons]

Hello all, my friend inherited a home in California that she needs to part with but doesn't want to sell on market. I'm not into wholesaling so I'm just seeking advice as far as the numbers go to help get it sold for cash or maybe do a seller finance/ owner finance type thing. its a modular home so I'm unfamiliar with how much they vary from SFH.

she wants at least 100k for it

Estimated value is about 120k

needs maybe 5k at most in repairs

rent estimate is about 1500

total monthly expenses including hoa is about $1010

Would it even make sense to seller finance it? Do modular homes depreciate instead of appreciate?

[Don Alder-LaRue]

@Gabrielle Simmons  It seems you may have some confusion between the difference between a manufactured home, a mobile home, and a modular home.

A manufactured home is a "mobile home" built after June 15, 2976. It has a chassis, more than 320 square feet of living space and is built to federal HUD guidelines. If the home is built prior to June 15, 1976, has a chassis and more than 320 square feet of living space it's a mobile home. These mobile homes only had to meet state standards and each state got to decide what those standards were.

A modular home is built in a controlled factory environment in sections which are then transported to, and erected upon a foundation at the build site.

Palm Canyon Mobile Club is a mobile/manufactured community.  It is possible, though doubtful, that there is a modular home there simply because the homeowner does not own the land, and pays space rent.  Homes in these parks are typically required to be "mobile" so they can be removed from the community should the need arise.

Contrary to popular belief there is a market for mobile/manufactured homes, and this market appreciates and depreciated like any other market.  Mobile/manufactured homes are typically the last to appreciate in value when compared to "stick-built" housing and condos, and they are also the first to see depreciation when the market switches to a buyer's market.  At this time in the Coachella Valley, we are still seeing the appreciation of mobile/manufactured homes.

Now, back to your initial post.  There's no issue with selling a home for sale by owner, but if you want to help her by representing her, you will need at least a Mobile Home Salesperson's license issued by the California Department of Housing and Community Development or a Real Estate Salesperson's license issued by the California Department of Real Estate.  Either license will suffice in allowing you to represent your friend in the sale.  If you are only gathering information for her this becomes a moot point.

Next, If she wants at least $100,000 for the home and it needs approximately $5,000 in repairs, it is highly unlikely an investor will purchase the home.  There's just not enough meat on the bone, especially after considering carrying costs  Depending on the square footage of the home, she may not get the desired $100,000 as there have only been 3 resales of older mobile/manufactured homes in the Palm Canyon Mobile Club over the past year with sales prices of $76,000, $81,500, and $130,00 with the $130,000 home being "highly upgraded".  A proper market analysis would need to be done in order to price the home better.

Lastly, the rent estimate of $1,500 per month needs to be dropped from the conversation completely.  The home is in a mobile/manufactured home park and the new owner would be paying space rent.  The park will not allow the home to be leased or rented as it is considered sub-leasing and is against the park rules and regulations.

Sorry to sound like a pooper, only trying to help.  PM me if I can be of assistance.