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Updated over 5 years ago,
Flipping a mobile home with land
Hello!
My husband and I are buying our first home. It is a 2240 sq ft. Mobile home (on block foundation) with 4 bedrooms and 3 baths. The property contains five acres, a garage, and a barn with six stalls. This place needs light/medium work , remodeling, and landscaping.
We were going to buy this place as our first home, but are unhappy with it. I had the idea to buy and flip instead for a profit. We are buying for 169 K, and it appraised for 190 K.
We have 5,000 to invest in remodeling and repairing. We have many doubts, as this would be our first flip, and we are very unsure about the resale value and if it would earn us a profit.
We would love advice.
This home is in sadieville, Ky.
Perhaps your realtor can help you with ARV. Be aware that mfg homes are different than stick built in construction. It can be difficult to get a contractor to work on it so it depends what you want to do. Obviously paint and carpet wouldn't be a problem but windows, doors, even plumbing fixtures can present a problem.
Around here, north of Seattle, people flip double wides on their own lot all the time. Buy in is lower, selling price is lower. You want to make sure it is easy for a buyer to get financing. Around here, on its own lot the house has to have its title eliminated and joined onto the land title. Also, not all banks will loan on a set up like this or they may have specific requirements for the foundation, tie downs etc.
Remember to consider buying and selling cost into your calculation along with purchase price and rehab cost. Insurance and any financing cost should also be included.
Why are you unhappy with it? Unless the neighborhood is atrocious it might be a good idea to live in it and rehab over the next 2 years then sell it. Tax free income for your primary home so maybe talk to your CPA about how flipping will impact your taxes vs living in it then selling later.