Looking for deal analysis on 1987 MH, mkt 15,300, asking 17K
The deal:
1987 Oak Creek 3/2, ~1300 sf double wide. Market value is $15,300, seller asking $17K as her lowest cash price. Purchased six years ago for $26K. She claims it is very well kept, six year old roof, everything in working order except the carpet.
I'm going to see it tomorrow with my friend who will be translating from English to Spanish for me and vice versa for the seller. Seller still lives in the home thus, may not be very motivated to sell at the moment. She knows that another month's lot rent and a year's worth of taxes are coming up, however.
I'll be walking around looking at the home as meticulously as I can and making my notes (idea taken from Michael Quarels) to have some room to negotiate. I think $10K is the highest I can go. The only thing I'd have to replace (according to the seller) is the carpet. So I might be in for $12000 after advertising, lot rent, and 2016 taxes (assuming I sell before Feb 1st). There was a 3/2 ~1300 sf 2000 AM Homestar Galaxy on the same street that sold for $35K. I know this is a comp in size and number of beds and baths only, not year/make/model. However, if I am in for $12K, would it be silly of me to think that I could sell it for $22K? What would the deal be structured like for seller financing? This is my most critical area of weakness.
This will be my first offer face to face with the seller. I have established a good rapport with the park manager. She told me today that she would let me have "first dibs" on good deals that come along. When I drove around the other day, I brought her some addresses of run down homes. She and I went over the addresses together today and she let me know which ones were being rehabbed and which ones still had residents. Before I left, I gave her a $20 Panera gift card for being so wonderful thus far.
I feel like this is a very good relationship to have and even if a deal falls through, I can keep facilitating my relationship with her and the park. She asked for business cards and flyers so she could let the residents know that I exist and am willing to help people out.
The deal I'm REALLY waiting for is on the same street as the two aforementioned properties, its a 2/1 1983 Zimmer Windsor (14'X66'). I've posted about this one here before. Owner has expressed interest to Park Manager about selling for $4,000, owes up to $700 on back taxes but has no lien against the property. HVAC system needs to be replaced. I'm sure some other stuff needs to be taken care of as well.
Her phone number is not working and no one can get in touch with her right now. My initial plan for negotiations is to find out more about where she plans to move and how much her expenses will be to relocate. I will offer her that much in cash for her mobile home. Almost a cash for keys situation. My max is $1500 I know that she'll be owing another month in lot rent on December 1st ($405) and then will have another ~$300 in taxes billed in January. She is most likely the most motivated seller that I've come upon and the numbers are good.
Would you agree with this approach or do you have a different suggestion?
By the way, I know I write a lot in my posts. Thanks for taking the time to help a new person out. I know I'll be able to contribute like some of you do, one of these days. My goal is to have my first deal done by the year's end.