Mobile home purchases in Eastern NC

13 Replies

I have two doublewide mobile homes purchased one for 24k rent it for 650. Have been for three years . Tax value says 80k. Thought about selling in the near future to purchase some others? Should I hold or sale? I also have anther that I rent for 650 with 450 mortgage. Same location as other both have there own land 1 acre each. ?? Just wanting to try something different getting stirred up a little lately.

Tax value is not the same as market value. What do you think you could realistically sell it for?

Is there anything else you could do with the acre of land? Subdivide, mobile home park?

I have talked to both tenants and have given them the option to buy the properties, but I think there credit is an issue. I don't really want to carry a note.  They both like the properties and have been there over a year. I told them I would sell for mid 50's. Don't really know market value?   They are both 2001 model in good condtion, bricked up etc.  I don't know the code for adding any others on the property, but would be a great idea if I could.

Why would you be concerned about writing the note on it but OK with renting them?  If you write the note correctly you can always resell it but it gets you out of taxes and maintenance.

Another option might be to borrow a small amount against the one you won free and clear and use that to buy a third, if you have enough cash to get that one free and clear then borrow against that to buy the forth etc. 

My advisee would be to, if you can, keep your loan duration at 10 years and under so you are building equity faster, then in 10 years you start to get the full CF again and that can be a really nice thing when your tenants buy the property outright for you.  (a 35k loan at 5% for 10 years will run you $371.23 a month 25k loan would be $265.16)

Good thought Bob. Thanks for the input I will let you know what happens?

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@Shane Waller  What did you decide? I am a couple of hours west of you and thinking about branching out from parks into selling homes on land. Most parks in my area (Raleigh) are corporate owned now and they won't work with me.

Just renting still right now. Have pretty decent tenants?

I agree with an above statement about notes vs renting. I'm doing mobile homes but I'm specifically not renting because I don't want to be a land lord. I'll be the guy that holds a piece of paper and financing and get a decent return. I'm not mad about that at all. Just make sure you set up the paper work correctly. For example, if our tenant buyer defaults past X days the contract becomes a  traditional lease. Therefore, rather than going through a lengthy and expensive foreclosure on the property, the bad tenant buyer is now only a tenant and can be evicted. Obviously, thats not what we want to happen but its good protection.

@Shane Waller  Are you looking to buy more? I sent some mailers out and some are out a bit east for me..is Princeton too far from you?  If I get any calls there I can send them to you.

@Jefferson Lilly  My mailer actually got a reply from someone with a 23 space park. I am meeting him next week but don't know much about entire parks yet. I do want to own 100ish spaces one day, I think 100 spaces and I could be just fine if I wanted to be

@Eric F.  -

Congrats on getting a response to your mailer!

Focus on purchasing a park that has city water and city sewer.  Stay away from well and/or septic - unless the water and sewer run immediately infront of the park.  Don't buy a 'stranded' park on private utilities with no easy way to connect to the city utilities.  Also, run test ads on CraigsList.  If you don't receive at least 20 responses/week, then walk away; the economy is too weak.  A small park like yours is an ideal candidate for seller-financing; it'll be difficult (but not impossible) to find a local bank to finance it.

My 2 cent's worth,

-jl-

@Jefferson Lilly  my mailer was actually for plain mobile homes on land, the guy who called just happened to have a park as well.  He is on city utilities 

Eric, if you decide not to pursue the park I would appreciate an opportunity to evaluate it. My partners and I may be interested in buying it. Thanks.

@Russ Wallace  , I have not been able to meet with him yet, he had to leave town last weekend and I can't this weekend, but hopefullyI will meet with him soon.

Eric