Help!! Need help with Purchasing a Mobile Home

9 Replies

Hi all! I recently ran across a Mobile home that says its remodeled for 13k OBO and it's presented as a mobile with 3 individual efficiencies. Each with separate entry/exits new baths in excellent cond. it seem to be in a great area, I drove by but since it's in a gated community, I couldn't get a look at the actual unit. I NEED HELP. my thoughts are offer $8-$10k, (it's been a week, craigslist) rent out the three units, (have no idea of the rental prices yet) I'm meeting with the owner this afternoon!! Sorry for the short notice but Since I finally got in touch with the owner I thought I better jump on it! I don't have any software to run the numbers yet, there must be HOA fees since its gated. What do I wanna know?? Everything! Lol I figure it would be easier to get a loan for 8-$10k He said there's no financing avail. Does that also mean owner financing? I was gonna ask him about owner financing! How do you NOT sound like a dork on your first purchase😔😕 I have confidence in you guys, I have seen you help a lot of folks on here. That's not all... There are several empty homes near me that I need to figure out so I'm NOT leaving, your STUCK WITH ME! Lol 😇😉

@Victoria Lorick

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!

Ok guys! Bill Neves Harold Anderson I went to check the place out and although it's in a "Gated" park, there are a few nice homes but most aren't incl'd the one I looked at. The park raps around a lake, which is nice! So.. I don't know if any of you are familiar with or live in South Florida, (WPB) but in Lake Worth, just a few short miles from there I've notice a lot of these types of properties where they take a 3 or 4br home and "Divide" them up into efficiencies/studio apts. Complete walls and all! This particular one like I said earlier is 3br/3ba. I asked him if it was "legal" as in permitted and he said he bought it like that and these walls weren't just thrown up there! So... after purchase, one of the 3 tenants will remain depending on if or how much the rent will go up. It breaks down like this: Income- $1800. mo income $600 mo. per unit all utilities incl'd Expenses- $665 -for lot $65 - water/taxes/sewer $75-100 - power $35 - cable ------------------ $860 (using $100 for power) Profit of $940 Although the walls are very permanent I'm concerned about me having a problem with the city and permit issues. How can I check on this to find out? P s I'm thinking I would spruce up the place a bit, I mean I don't think they are complaining but I figure leave it as is unless I'm planning on raising the rent and if I do I'm probably not on the tenant (lil ol lady) wanting to stay put..😏 Thanks! Victoria

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.

@Bill Neves

@Harold Anderson

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.

Have fun!

You should be able to pull up permit records online at - select ADDRESS and type it in.  Will show you if a permit was approved and if it passed inspections, etc.