Hi everybody. I am new to real estate except for all the reading and podcasts. Any advice would be truly helpful as I want to get started. I found a mobile home that I thought about as a first deal but the cons are that it has been listed for 43 days and since it has not sold and the fact that it is listed means that there is no way it could even be a deal. Another negative is the high lot rent for the area ( 595 per month) and this is a large 55+ park in Riverside county in California. I am not 55 and I was wanting to do a live in flip or a slower flip to learn the ins and outs of rehabbing at a discounted price so management would see if I could live in it part time. The price is 12500 for a double wide 1980 home that needs some TLC. The part that has me considering this is that I see similar ones for sale in the 18000 to 25000 range. The other thing is this is a probate sale and the agent said the person that inherited this was going to give it up to the park because they cannot afford the 595 a month, as per the administrator they have 3000 due to the park. The agent told me the person was offered 10000 and did not accept the offer because at the time it was just listed, then after another week or so tried to accept that offer but the buyer had already bought something. This leaves the question now that since they are motivated and to the point of giving it to the park or possibly accepting an offer of what I see would work for both parties is 5000-6000. Any thoughts by the very knowledgeable BP crowd. Thank you for any responses.
don't buy it
It is not real estate
Just because it is listed does not automatically that a deal cannot be made of it. I would run your numbers and make an offer accordingly.
Thanks for the suggestions and I agree it is not real estate because it is in a park but if running numbers means there is a profit potential it could be an option. I think I will have to pass because of the high lot rent and it being a 55+ park where the park management does not seem to be to cooperative. Trying to figure out how to structure a deal seems above my level of experience so I will stick to my original goal of a live in flip or finding a 2-4 plex and live in one while fixing it up and renting out to others for a year or so and gain some experience.
Good luck on your search. I don't know anything about mobile home parks, but i thought i read or heard somewhere that you had to be over 55 to purchase in a 55+ park, even if your only intent was to rent it out.
might be a deal. How much are comparable rents? Check out John Fedro's blog. Www. Mobilehomeinvesting.net
Mobile homes only depreciate in value, and since it is in a park, there is no land to add value. I suggest you save your money for another property.
Make sure you do your due diligence. parks have many rules and restrictions that may stop you from achieving your goals, for example some parks will not allow you to rent, some have a clause stating the space rent goes up each time the home changes hand, age restrictions, pet restrictions and other restrictions will influence your turn around.
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