BRRRR a Mobile Home?

Question

Help?! Looking at a property in a tourist/STR destination. The property has an old but in decent condition Single Wide Manufactured home (does need some updating) with land included (not a mobile home park). I hoped to use  the BRRRR strategy to get a good deal (I have a few possible channels for raising the cash). The problem is how do I find a financial institution who will cash out refi on the single wide (get the cash out)? maybe a mortgage on the land only? Any thoughts or insight is welcome. The property is in Arizona.

Trent Davidson · Answer

@Steve Milford thanks for the info. Detitled? Does that simply mean not in a MH park? This property is a single wide on a privately owned piece of land. Youbare pretty much saying I am not gonna find an institution to lend on it if it is not owner occupied?  Is that correct?

Steve Milford · Answer

@Trent Davidson Be aware, finding financing for non-owner occupied manufactured home de-titled on land does NOT exist, except from private money. It doesn't meet Fannie Mae guidelines, so loans have no value of secondary market.

Trent Davidson · Answer

@Rachel H. Amazing! I will lok into that as well. I think the difficulty of finding financing is why this one isn't being sold. As they say, real estate investors get paid to solve problems and find creative solutions. I will see what i can do.

Rachel H. · Answer

@Trent Davidson You may also want to check with some local mobile home dealerships and your manufactured housing association to see if they have any referrals for you. I've found both to be good sources of information in the past. Hope that helps!

Trent Davidson · Answer

@Jason Crowe Thank you so much for the insight. I will keep you posted

Jason Crowe · Answer

Trent this is exceptionally difficult.  FHA will not touch them normally unless a newer one after 1970 approximately.  There is a new MH criteria for financing single wide but it has to meet some very specific standards i believe.  Not a fixer upper at all though.  Tags need to be on the mobile home then the data plate inside indicating model and specifics on manufacturer etc.

I've found it difficult to finance just the land too with the home on it.  I would recommend local small banks and reach out to all of them.  Maybe a portfolio loan out there if you can pitch it to them correctly.  It probably be 10% interest land at least that ive seen in FL.