Newbie from Sedona, Arizona.....

[Clary Roberts]

Hello there from Sedona, Arizona.....

I am a 62 yr old married man about to retire from my full time job and am a licensed realtor as a part time job.

My wife and I are considering and starting to learn more about manufactured homes.  We are thinking about buying a lot and placing a manufactured home on the property to resale for a profit.  In Sedona there aren't many MH's or lots that allow them, so an older model on a 0.25 acre lot sells for around $105 psf (a 1,500 sq ft MH would sell for around $157,500!)...a lot which will require adding a $10,000 septic system would cost me around $50,000.  Our thinking is $50K for lot, $50K for MH, $10K for septic and $15K for adding a deck and misc we'd be into the project for around $125K.  If we get a newer model and can sell it for around $160K we could make a nice little profit of around $35,000 at best.

So, I hope to get some advice here from people who are like minded and perhaps tried this type of project or can guide me to others who can offer specific advice to either encourage us or offer a reality check.

Our average house on an average lot in average condition sells for around $185 psf and it goes up from there quickly to around $300 psf and up.  Most selling for around $230 psf.

Most MH are selling for around $105 psf for an older model and yes that includes a 0.25 acre plot of land.

So I'm hoping to do this full time as a replacement income from my forced retirement at age 65, but start part time now.

On another note....since I'm over 59.5 yrs old, I believe I can take the money out of my 401K and do a ROBS (rollover business start up) 401K and use those funds to purchase land, MH and improvements.  I have a lot to learn about that also, wondering if I have to put the profits back into the 401K or can I withdraw them like an ordinary 401K and pay the tax on that....I'll be keeping my CPA busy for while!

Looking forward to sharing and offering whatever feedback I can to others here.

Have a wonderful weekend!

Clary Roberts