Wildomar, CA fix & flip

[William Bratrud]

Investment Info:

Mobile home fix & flip investment in Wildomar.

Purchase price: $118,500
Cash invested: $48,000
Sale price: $242,000

We purchased a 1980 2bd/2ba 1152 s.f mobile home through local real estate broker who works with us on a regular basis. The home didn’t have a permanent foundation so it was a cash deal. The place was a mess, the owner had deceased and left the property in poor condition not to mention the two linx wildcats that he had living inside of the house with him.

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

It was a pocket listing about to hit the market. We had worked with this real estate agent on a few other flips and she had never failed us yet. At the asking price it was a no brainer, the market was smoking hot and I knew that we could make a good profit with a good rehab.

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

The listing agent who we had established a good working relationship with through a couple prior deals brought it to us before she put it on the market. Technically at this point it was a pocket listing. We offered $100K but the seller rejected our offer and told the agent she wanted it listed in the MLS. She listed the property in the MLS and after a few offers came in we ended up winning the bidding war at $118,500 with the listing agent going to bat for us.

How did you finance this deal?

100% Investor financed with private money

How did you add value to the deal?

We did a complete rehab on the property. Flooring, windows, granite, paint, sinks, tubs, toilets, cabinets, landscaping, and lots of surprises and extra repairs along the way.

What was the outcome?

We listed the property with the same agent who brought it to us. That’s the way we work with many of our agents. It sold within 2 weeks for $2k over asking price. All said and done the profit was around $56,000 in 2 months.

Lessons learned? Challenges?

Beware of spongy sub floors in mobile homes. They usually indicate extensive water damage and are a rehab nightmare. There’s a $500 little piece of paper glued to the inside of the cabinet in every mobile home that shouldn’t be painted or removed. There are two little $500 metal decals on the outside of every mobile home that shouldn’t be removed or painted either. Rehabbing mobile homes are twice the work of rehabbing stick built homes. Building relationships is critical to finding deals.