Help on MOBILE HOME Deal!!!!!!!!!

[Michael Gainer]

Hey everybody currently I am working on coming up with an offer for a 3bd 2 bath mobile home which is in great condition! The thing is the sellers asking price is $33,000 and zillow says the ARV estimate is $140,000. Is this something I should get under contract and wholesale to an end buyer or am i missing something here?? And if I were to wholesale it what would I need to do as far as finding a contract?? Any help would be appreciated!! Thanks!

[Charles Kennedy]

Michael,

DO NOT TAKE ZILLOWS ESTIMATE AS TRUTH! Why don't you take a look at a brokers website and see past sales of mobile homes they have done (in your area mind you) and see how they compare. Check out 3 bed, 2 baths and how old they are compared to yours. Would someone really sell something worth $140k for $30k? You can find discounts, but probably not something at an 80% discount. That seller knows what he purchased it for and wouldn't take a loss that big unless they are really strapped for cash.

Also be wary of lot rents. When you buy this home, they likely have it at a park already where you are obligated to pay lot rent or move it (this can run $2k-$5k depending on distance). If you cannot resell it at a profit within a few months, you will be sitting on a costly mobile home. 

Maybe the best plan is see what 3/2 mobile homes are renting for in the area. Ask what the lot rent is. See how much you'd have to pay in insurance and taxes. See how much you could generate a month.