Probate sale Fix and flip

[William Bratrud]

Investment Info:

Mobile home fix & flip investment in Lake Elsinore.

Purchase price: $175,000
Cash invested: $40,000
Sale price: $300,000

First probate property. We purchased this 1988 mobile home on a permanent foundation with a detached 2 car garage. The house sits on a large 1/3 acre lot and was in pretty poor condition at the time of sale.

What made you interested in investing in this type of deal?

This was late 2018, the market was red hot and good deals were very hard to find. I had flipped a few mobile homes prior to this one and there seemed to be less competition with buying mobile homes vs buying a stickbuilt house. I haven’t found any deals in over 2 months and I was getting desperate.

How did you find this deal and how did you negotiate it?

I found it on Zillow, contacted the agent directly and asked him if he had any offers. He said that he did but none of them were his clients. I asked him to represent me, he agreed and we made an all cash offer on the property.

How did you finance this deal?

This Project was private investor financed. I showed the numbers to him and he said tell me where to wire the money.

How did you add value to the deal?

We did a complete rehab on this property totaling $48K

What was the outcome?

The rehab cost us $12K more than estimated and the home sold for $30K more than we had originally estimated. The outcome of this deal was very good. The home sold in 1 day and there was a profit of around $55k when it was all said and done.

Lessons learned? Challenges?

There is much less competition investing in mobile homes for a good reason. There are a lot of factors that make mobiles less desireable when compared to stick built homes. They are full of surprises from title issues, to financing, to rodents, bad sub floors, foundation issues, oddly sized and inferior windows, doors, walls, plumbing and electrical not to mention desireability when selling.