Possible first deal?

7 Replies

I just got done reading this recent post

https://www.biggerpockets.com/forums/30/topics/190...

And it looks like there is an abundance of information!

My story:  my sister and brother in law are moving to a trailer park in Colorado  from Tennessee, and I was theta sanction person for them, helping them buy their home.  My brother in law is completely renovating their place, along wi his little brier, and doing everything themselves.  

Since I have a budding relationship with the MHP management and maintenance, they have offered me "first chance" at another home in the park.  It needs some work (SOW to hopefully be completed today when I meet with them and see the place).  

They are asking $4K and the lot rent is $400/month.  

I am cautiously excited because of course I want to "get my feet wet" in the business, and this might be a niche for me since I have no money yet (but a full time job with a steady stream of income).

We also have the option to live there for a few months to save money.  Our apartment lease is up in less than 2 months.

I know I don't have many details yet but I will later today. I'm meeting the park manager during my lunch break from work.  My husband will be there too.

I hope I can make this a deal!

I don't know how to edit, but my first paragraph does not make sense.  I meant that I was the in-town, face-to-face contact between my sister and the MHP.  I was the one who gave management the money order and paid their first couple months' rent.

I met with them today, but they had an issue and didn't meet me until I only had 20 minutes to get back to work.  I realized today that I'm not good at asking for all the information.  The home is an fairly large 2/1 that needs flooring and appliances at bare minimum.  If I decide to buy, I would gut the whole thing, put raw dry wall in, and renovate then kitchen and bathroom.  The deck is huge, but needs repair.  All the Doors and windows also need replacing in my opinion.  The roof and structure looks solid, and the manager stated that they are doing an 8-point inspection/repair before they sell.

It is very difficult to find comps that aren't just word of mouth from the seller, so I am still undecided.  I also need to get back in there wit a tape measure and more time to make some real estimates.

@Kristin Compton for a MH needing that much work, they should give it to you. It's not a deal IMO. Too much work and no money in the end. After you do all the work you said it needed you will still have an old small MH. $400 for lot rent is not cheap either.

thank you for some perspective! I want to get into rehabbing and making neighborhoods nicer, but also make a profit, not lose $. 

from what I've read and experienced, I'd say the same.  Well, not for free, but i've seen them for $1000.  Especially since its a 2 bedroom 1 bath.  You can always make an offer, or wait for something better.  

I agree with the posters above, the lot rent sounds high and $4k is a lot for a 2/1 that needs to be gutted.  MH is a great place to start investing but you don't have to jump on the first "deal" you hear about.  Run the numbers on this one for practice and keep looking unless you are convinced this is an amazing deal. 

Find a better deal. the MHPM wants to have full vacancy. They don't care about the condition of the MH. 

$400 is about average for MH space rent in NE Florida, but it might be high for your area. Confirm rents by calling all local MHPs.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.