Flipping Modular Homes?

Question

There's a property tax foreclosure auction coming up in my area soon (Ingham County, MI) and one of the properties being auctioned I found out is a 3 bed, 2 bath modular home. There are other modular homes in the area, but there is no info about them selling on the MLS to use as comps, I'm assuming this is because they were just purchased as a lot and placed a modular home on it. There is also no open house for this property, I would have to buy it sight unseen.

Does anyone have experience flipping modular homes or should I just stick to the more competitive SFH's on this auction?

Rachel H. · Answer

@Gabe Goudreau If you're planning on fixing up the home and selling, it's best to make sure there's market demand for modular homes in the area. The last thing you want is to be left with a home no one is willing to buy at the price you're asking.

As for comps, if there are other modular homes in the area you may want to check sites like Zillow or Redfin to see if there is data on those properties.

The other option is to fix up and rent which may work if there's enough demand in the area.

Hope that helps!

Bill J Fay · Answer

What is your goal with the purchase? Buy and sell? Buy and hold?

Regardless,

1) Make sure the modular home is affixed to the land.

2) Do some research to confirm these modulars are financeable. If you are stuck with a modular home that can't be financed, you will never find an end buyer.

Gabe Goudreau · Answer

My goal is to fix and sell, it is mostly a cleanout from the looks of it, and I believe that it is affixed to the land. Great suggestion about being able to be financed, I will call some local lenders and ask. Thank you!