Hello

[Nathan Huzzey]

Hi everyone, new member here from Central Michigan. I have limited knowledge of the RE business as a whole, but have some experience as a landlord. I am to a point where I would like to get more involved in RE.
I'm currently in a situation that i'm not sure what to do. While I was searching the internet for answers, I stumbled across this site. I have to say, I have been very impressed so far. Keep up the good work!
Now for my issue. I own 2 mobile homes on 2 acres of land in a pretty good location. One mobile is in pretty good shape, while the other is falling apart. I mean the ceiling is falling in, flooring is sagging, light switches not working and etc. I would like to tear the bad mobile out, but I would not be able to put anything else in. It was grandfathered in when I bought the place. I would be required to have the 2 acres split and put in a new well, septic, and what not. The cost to get the land ready would probably be about $20,000. What I was thinking was that I could just do a total remodel, but I would have to do it without permits because I am not allowed to do renovations on it. I was thinking it could be done for about $10,000-$15,000. I would then rent it for $375 a month and have it paid for within 3 years or so. I would be able to rent both places for total of $850 a month while I work on other deals. I know mobiles don't hold value, but I would think that it they would hold their value for at least 15 years. Side notes: I would like to sell the property, but probably won't get close to the amount that I want. Also, its hard to find someone that can actually get financed for it. I also only have 2 years left on the mortgage. Any thoughts, advice, ideas would be appreciated. Thank you.

[Sam Parkins]

Nathan Huzzey, have you tried talking to a different person at your county (locality) office to discuss the replacement idea. I usually get 5 different "answers" from 5 different county employees each time I call.

I ask this because as you've discovered with the excellent replies, rather than drop $10,000 to $15,000 into the home there to fix it up, pulling in another home probably helps you out. If you can pull in a $5000 home with little work needed you'll pay for the home and probably about $3,000 to $5,000 for the pull and set. So yes, it's expensive in it's own right but you should be able to get a newer model (assuming the dilapidated home is older) that should hopefully suffice to be less of a "money pit" for you.

As for the county, it is certainly different in different areas. In my area, even counties that require the "acreage" rule will allow homes to be "switched" out. As Marcy Albrecht pointed out, the grandfathering in my area allows homes to be "switched" within a given time period to still hold their "grandfathered" status. i.e. one would get 30, 60, 90 days or a even a year's time in some cases to "replace" the old home and still get the permit to reside in that home without giving up the acreage.

It may not be the case in all localities, but most counties will take an upgrade on the mobile home "eyesore" even if they don't want more mobile homes in their area.