New Investor needs help - Mobile Home Deal

[Cody Barna]

Hi guys I’m brand new to investing and I’ve been activity looking for deals. I came across this off market mobile home for sale and I really would like your feedback  whether or not this is a deal I should move forward with. Here is the selling actual description...

2BR / 2Ba 1140ft2 available now

manufactured
w/d hookups

I have a 1977 Artcraft Royal Villa for sale. This home must be moved from its location. It is a 14x66 - 2 bedroom, 2 bathroom home with a 12x18 3 season porch.This home is extremely clean. New vinyl windows were recently installed. Home does not include kitchen appliances or cabinets. Serious inquiries only. Your land must be secured before viewing this property.

I with also attach photos, they are asking $6,000

[Gail W.]

     NADA and Kelley Blue Book both have values for mobile homes. I don't know since I only invest where I live (central Illinois) but I would suspect values are very local. I have 2 mobile homes one was given to me because the couple who owned it needed it moved to make room for the new one they bought. It is a 1989 that they had been living in but it had some problems. The other I just bought for $500. I own a lot that the city will allow me to park a mobile home on and I estimate about $8000 in renovation costs. It will cost me $1000 to move it 5 miles. It's a 1990 Fairmont.

Also this unit is just the first year after the HUD safety laws came into effect in 1976. Mobile homes after '76 are better build quality and safer homes. I personally would not invest in something before model year '76.

      One last thing I don't feel like mobile homes are a real good buy and hold play because they are going to depreciate. I am using the cash flow from the two I am holding to pay off the land they sit on. I consider the mobile home disposable.