There's a mh here in Bend, OR on hudhomes in a fairly good location in town, on a fairly large lot for in-town (.45 acre). The home is old (1980 according to listing) and in rough shape. It's 1754 sf 3/2 and has a decent floorplan and large kitchen. If it were a stick-built house i'd jump on the deal and rehab it. But it's an old mh so i doubt it's worth fixing all the busted up cabinets and drawers, replacing finishes and floors, etc. It's listed at $95k but i think it will go for less. It would probably rent for 900-1200 depending on how good/bad it looks inside. I'd live in it myself if it were fixed up. The neighborhood will almost certainly be developed eventually into much nicer houses. THat has already happened all around it, and is happening in other parts of town as well. This lot may be big enough for 2 or 3 homes when that time comes.
It's attractive to me because of the location and large lot, but the house is pretty bad. Good houses in adjacent neighborhoods go for $200-400k+.
I'm wondering if it would make sense to fix up a bit, or to drag the house to the dump and put a nicer used mh there, or ....? Or just to pass because it's not quite right.
How should i approach this?
I buy them and fix them and rent them where I live in TX. Don't know what your market is though. You said good houses go for $200-$400K+ those are probably Single Family not Mobile. $95K seems high to me for such an old home that needs work. I'd first ask a realtor to see if there are any comps in the area so that you'll have a realistic idea of ARV. Then run your numbers and see if its a deal.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.