Sounds interesting. Have the units been rented out? Does the HOA allow rentals?
Sounds like an awesome deal at first blush. With 3 rentals. Wow!
Since it's advertised as rentals it is probably ok with the HOA but verify that as mentioned by Harold.
Probably can't get financing due to age of unit. No bank will finance older mobile homes. YOU could get a credit union or personal loan if needed.
A simple question would be "Would you be willing to take some money now and some later?" Then negotiate what that would look like.
Could be $1000 down and 36 payments of $X. Many times sellers just want their price and won't charge interest.
Could be $5000 down and $500/mo for X months. There are an infinite number of financing terms. Since you would have rentals you could pay it off quickly.
If you get financing from them, they may want full price. But go in assuming to get a discount.
Hope that helps. Let us know how it goes.
Good luck and Have fun!
I don't pay for cable for my tenants, I also don't include utilities (except sewer is included with the lot rent). If this it is an option to have the tenants pay their own utilities it can increase your profit. In my area it is common for utilities not to be included, but I suppose if all the surrounding units available for rent in your area include utilities it may be a harder sell. Although another approach may to be have them pay their own utilities and lower the rent, I don't like to pay utilities because it makes it harder to budget since they can change according to use per month (if a tenant want to take 10 hot baths a day and they pay for utilities, then I don't care). I'm no expert as I'm new to investing as well but I've had a few rentals (all MHs) now and this is my two cents.
Also I see you're trying to tag a couple folks with @. I'll try and help you out see if it works for me. You have to type the @ symbol then start to type their name then look for it to pop up on bottom of reply screen, click on it and it should tag them.
Thanks @Thomas Bybee
Howdy @Victoria Lorick
You can check with city and/or county building department on code requirements. Mobile homes have different requirements than stick built houses. But some permitting is required... in some areas.
Here's what can happen:
Though not a mobile home, I currently have a rental in which I had a code challenge. In 2004 I bought a 1300 sq ft stick built house, for a rental, that had a family room add-on. I understood it was up to code. It was 2004 when things were rocking and rolling and we financed it. The loan company, realtor, title, etc and we all missed that no permit was ever pulled.
In 2012, when it was discovered, the city inspector said it should be easy to just buy the permit and be legal. City inspector didn't issue permits. DARN IT! Permit people had different ideas.
Requirements - Blueprint, remove ceiling, walls, floor to bring insulation up to code. Move a window and a door and redo the roof. Decommission an old septic tank that we didn't even know was there since we were on city sewer. Yikes!
The city started fining us $550/mo for NOT being in compliance on an $1100/mo rental. We had an adversarial tenant who threatened to sue me for harassment, unsafe housing and endangering his family with code violations. All this was bogus. This was in Portland, OR. Very tenant friendly and not very landlord friendly area.
Attorney time and 18 months later: It was going to cost $25k to bring the room up to current city codes. If a permit had been pulled when built, codes were less stringent.
Result? We paid the tenant $1000 to drop any claims and move. Tore the room off and now we have a 900 sq ft rental. Still cost $10k to tear off and finish to be up to code on what we had left.
I resold it as a lease option so no potential tenant issues.
Again - this was a stick built, not a mobile. Mobiles have different requirements, etc.
So.... due a little due diligence to avoid any headaches down the road.
You should be able to pull up permit records online at
https://www.lakeworth.org/ext/building-permits/ - select ADDRESS and type it in. Will show you if a permit was approved and if it passed inspections, etc.