10 Abandoned Mobile Home Units Inside An Arizona Park

[Jeff Petsche]

Investment Info:

Mobile home note investment investment in Scottsdale.

Purchase price: $1
Cash invested: $25,000

In negotiations with a mobile home park owner (friend of mine) who has a park in Arizona with 110 pads. He has 10 abandoned units, which he does not want to mess with fixing them up and selling them, so he is willing to give them to me for FREE, if I agree to REHAB and sell to an end user, so he can get butts in the seats @ $350/month park rent per pad ($3,500 in vacant rent right now)

REHAB at $2,500/unit
SELL for $8,500
Move-In Down Payment: $1,000
36 Month Note @ $250/month
ROI: 53.26%/Yr

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

Friends and mentors in the space.
Barrier to entry is much less than traditional real estate.
Affordable housing (mobile homes) is not sexy to most investors, so less competition
Affordable housing (mobile homes) is more appealing to many than apartment living because they have a sense of ownership with a mobile home
Mailbox money with great ROI for little upfront capital
No headaches of being a landlord because I'm the bank the end user is responsible for maintenance, utilities, etc.

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

Through a friend who owns the park.
I looked at a solution to help him solve a problem with 10 abandoned units that he did not want to mess with fixing up and selling, or putting renters in them. Sitting abandoned was losing him $3,550/month in rent space, so I suggested he give them to me for FREE and I would take on the responsibility of fixing them up and getting them sold, so he can increase his occupancy rate and collect more rent.

How did you finance this deal?

Cash

How did you add value to the deal?

REHAB abandoned units to increase a sales price
Offered seller financing to those who could not buy for cash. No traditional financing on a used mobile home (outside of private money).

What was the outcome?

Still in the process of finalizing the deal and getting REHAB bids.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No. I'm a real estate Broker, as is my friend who owns the park.

[Matt Bonestroo]

@Jeff Petsche Hey Jeff - I am a mobile home investor in the Phoenix market... would love to hear more about the project that you have going on. Is the owner going to help you sell the properties? Are you in California or Phoenix? I am curious to hear your experience managing a rehab project from a distance... What years are the mobile homes?