Hi everyone! I have purchased some 10 acres in Texas and it has a single wide mobile home (1250 sq ft) on it. We are planning to fix it up a bit and resell.
The mobile home though is not on a permanent foundation and I'm worried it will be hard to sell (lot of mortgage companies wouldn't finance). Do you think it's worth the cost/effort to add a permanent foundation for a single wide mobile home for resale value?
On the one hand, without the permanent foundation, the mobile home couldn't be financed. On the other hand, it's a small single-wide and I can see some potential buyers might want to scrap it and build a bigger residence on the acreage.
My view is toss the single wide. You didn't mentoin age. To me for retail selling as apposed to mobile home park renting, homes older than 1998 are not worth me fooling with. Buyers want newer homes.
Buy a used double wide from one of the forclosure shops like Greentree. This lady will put you on their monthly mailing for your state. There's other mobile home lenders that end up with take-backs that sell their must be moved inventory. Google your area, used used mobile homes. I'd pay $20k for a yr 2000 to 2002, $5k to move. Then you need to have a septic / water hooked up.
[email protected] Ask to get on your state's forclosure list of homes. Mostly homes that need to be moved. I buy at the end where the homes on land are.
I don't know why you aren't considering subdividing that land. 10 acre is a waste on one home IMO. You won't get the price out of just one home. chop it up into 1-2 acre lots.
Mfh make great rentals, not so good flips. You can get the same rent amounts as stick houses, for rent, but it wont grow in value like a stick built house (actually go down.) You probably knew this. If county/city will let you, short/long platting is a great idea! We've done it. Call city or county, depending on which you're in, and ask them. they may have limits based on wells/rock/septic, etc. i would not add a foundation. Some houses are just owner carries contract. Or rentals. Mobiles are our cash cows. Milk them!
Even with a permanent foundation not all mortgage companies will finance a singlewide. Check with your mortgage companies to see what they'll finance. Even a DW has age restrictions (and the need for a foundation) for some mortgage companies.
Thanks everyone for your feedback. I really appreciate your thoughts. This is my first MFH and I just don't know much about them.
I will definitely look into the platting suggestion, but the acreage is so heavily treed and it's configured in such a way that doing that will be difficult. I think I'm also going to nix the foundation idea.
In the area of Texas I'm in, purchasing big plots of land is very popular so I don't think I'll have any trouble finding buyers who want the whole 10 acres. We were originally planning on building a home there, but changed our mind because it's too far from my husband's job. That is why we are trying to decide the best exit strategy (improvements that will raise value the most).
The mobile home was built in 1998. We paid $60,000 for the land and mfh and we were hoping to sell for closer to $100,000 based on comps.
Renting and owner-finance, while I know can be profitable, are not our favorite options right now because we were hoping to use the profit from this land to buy our next house.
If nothing else, I've learned a lot from this purchase!
I am hesitant to buy mobile homes that are not on a permanent foundation or have ever been moved as this disqualifies them for FHA or USDA financing which is popular on rural properties in Texas. I would only purchase them at a price that would appeal to another investor.
That said, I would may contacts with local banks and identify one that can finance with a reasonable down payment to direct your potential buyers to
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