I posted an ad that I buy mobile homes, and got my first call!

Mobile Home Park Investing
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I posted an ad that I buy mobile homes, and got my first call!

Jonathan West
Investor · Kyle, TX · Member since 2016 · 41 posts · 8 votes

Hi,

New investor, I live in Las Vegas put an add up that I pay cash for mobile homes.  I got my first response yesterday!  Great news however now what!

Its a double wide.  What questions should I be asking the seller?  He sounds motivated on the voicemail.

Here are my thoughts on questions-

What park is it located in?  What fees are associated with keeping it there

Why is he selling

How much does he want?

My questions to you BP regulars that understand this market, what are sites that can help me value this mobile property whether it is rents or etc?

Its a double wide.  Should I start at $1000 and negotiate up from there?

Its in my city, so thats a plus.  However mobile homes are not the norm in Las Vegas.

Any help would be greatly appreciated.   I am pretty lost as to where to start.  Thanks!

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  • Marshall M.
    Washington, DC · Member since 2015 · 81 posts · 49 votes
    10y

    Congrats! Also diligence the park: ask about historic lot rent increases and if they are planning to increase soon. Do rents include utilities? What approval do you need from the park manager etc. and definitely get a home inspection. Good luck!

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  • Francis Rusnak
    Flipper/Rehabber · Chicago, IL · Member since 2016 · 123 posts · 38 votes
    10y

    Maybe try to call someone else who is renting theirs and see if you can solicit rent info from them. Just be upfront, most would probably be happy to help with that and other Qs once you get them on the phone. 

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  • Louis Davis
    Flipper/Rehabber · El Paso, TX · Member since 2015 · 379 posts · 201 votes
    10y

    @Jonathan West When dealing with any seller always find out the motivation behind selling the property. That is the most important part. All buyers and sellers do so off of emotion. Once you determine that, get the sellers opinion on the condition of the property. For mobile and manufactured homes in Vegas and Henderson, you want to ask if he is paying any kind of lot rent or if he owns the land. It could make or break your deal. Lastly, find out with paying all cash and closing quickly the least amount the seller will take TODAY! You want the absolute bottom line number. With all that, you will run comps and determine the value and see if you got yourself a deal. 

    Hope that wasn't too much to read lol. 

    Louis 

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  • Steven J.
    Urbana, IL · Member since 2012 · 1k+ posts · 425 votes
    10y

    Keep in mind if you plan to buy a home in the park you answer to the park manager. If they say jump you ask how high because if you decide to be a pain in their butt they hold the power in most situations. Most parks won't allow subletting so you might not be able to rent it out. Most parks also don't want to work investors because they've burned bridges too often. 

    For the home you'll want to know if the title is owned free and clear (does the seller have it), the year is somewhat important to me because it determines my pricing. Keep in mind, most banks will not lend on mobile homes past a certain date which might be as late as the mid 90s. What that means for you is that either you are going to rely on a cash sale or selling on payments. 

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  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    10y

    I bought my last mobile for $50. 

    Always look at it before you make an offer. Always talk to the park manager before you make an offer. 

    I almost bought one and after talking to the park owner found out the owner was several months behind on rent and he wasn't going to accept a new tenet into it until that back rent was current. So I would have been on the hook for about $2500 in lot rent. 

    See if there are age restrictions. 

    See if they will even be willing to have an investor/ non resident owning a mobile. 

    Podcast Guest on Show Pay Less Tax to the IRS This Year With THESE Real Estate Tax Strategies
    Kolodij Tax & Consulting
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