South Florida newbielooking for a partner/mentor ASAP

Mobile Home Park Investing
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South Florida newbielooking for a partner/mentor ASAP

Jimmy Kennedy
Lake Worth, FL · Member since 2017 · 23 posts · 1 vote

Hello everyone,

I have currently contacted a owner of a mobile home who is trying to sell for $10,000. This will be my first deal if it goes through, so at this point I am looking for all advice pertaining to mobile home whole selling. I Believe this would be a good starter deal, let me explain. The mobile home is in a park where the comps have sold for $123,000 and upword. The HOA for the park is $560 a month, the average rent on the same street is $1258 a month. At this time the home is rentable with minor repairs. Is this a good deal? What other factors am I missing to calculate? I would like to place the mobile home under contract for the asking price which has been Lowered three times over the last 4 months, which makes me believe she is definitely A motivated seller. I have an appointment with her to go over the property and hopefully put it under contract if deal is approved. Please fill me in on all that I am ignorant of. Lastly but not least I would love to partner in with someone to get a gist of how things operate in the whole selling world. If this is something that someone is interested in or if you know someone that I could contact to get further information on this subject please inform me in your replies.

Thanks guys

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Sid Leibowitz
Contractor · Glen Cove, NY · Member since 2016 · 209 posts · 89 votes
9y

Hello Jimmy. A mobile home is a ore-manufactured small home with the proportions of a travel trailer (RV) in many cases they are a travel trailer that was rolled in place and jacked up on blocks with lattice skirt that is installed to hide the wheels and blocks that it sits on. Since they are not constructed well as house they are prone to lots of repairs Iike plumbing that is made with PEX tubing and roof seams that leak if not caulked with urethane or silicon every year. They are not really hurricane proof. The bulk on the investment money may be going to a management company or HOA to provide services to the park. The park usually owns the land and you own the unit only. There is no deed. If they want you out because the land owner decided to build permanent homes or an office building on the land they may ask you to take your home and leave. If you have a tenant and they have a lease then you could be in a legal battle. All you have to offer is a unit and no place to put it or you have to find another park to take you in. Is This the direction of your investment? You can also look into Travel trailers that you could more easily sell in case of an eviction. You would not do so well as trailers do not hold their value but at least you will not lose it all. Check out Travel Trailers on line, Go to an RV show and look at Fifth Wheeler's (large trailers). You can finance those through a dealer like you do a car. They have a resale book value. They diminish yearly so you can check the loss every year on line by going to NADA Used Trailer guide and see what they are worth. If you have to get out you can sell the trailer back to a trailer dealer. Hope this helps. Best, Sid

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  • Bill Ayers
    Real Estate Investor · Wamego, KS · Member since 2016 · 22 posts · 13 votes
    9y

    @Jimmy Kennedy Definitely contact @John Fedro and have a discussion with him. John has been doing this type of thing for 14yrs and even started in Florida.  Just tell him I suggest you two talk.  FYI he is a mentor and I have been working with him for the last 3 mos.

    Best of luck.

    0Reply
  • Jimmy Kennedy
    OP
    Lake Worth, FL · Member since 2017 · 23 posts · 1 vote
    9y
    Thanks Bill Ayers, I really could use him at this point. I'm nervous but motivated thanks again man
    0Reply
  • Sid Leibowitz
    Contractor · Glen Cove, NY · Member since 2016 · 209 posts · 89 votes
    9y

    Hello Jimmy. A mobile home is a ore-manufactured small home with the proportions of a travel trailer (RV) in many cases they are a travel trailer that was rolled in place and jacked up on blocks with lattice skirt that is installed to hide the wheels and blocks that it sits on. Since they are not constructed well as house they are prone to lots of repairs Iike plumbing that is made with PEX tubing and roof seams that leak if not caulked with urethane or silicon every year. They are not really hurricane proof. The bulk on the investment money may be going to a management company or HOA to provide services to the park. The park usually owns the land and you own the unit only. There is no deed. If they want you out because the land owner decided to build permanent homes or an office building on the land they may ask you to take your home and leave. If you have a tenant and they have a lease then you could be in a legal battle. All you have to offer is a unit and no place to put it or you have to find another park to take you in. Is This the direction of your investment? You can also look into Travel trailers that you could more easily sell in case of an eviction. You would not do so well as trailers do not hold their value but at least you will not lose it all. Check out Travel Trailers on line, Go to an RV show and look at Fifth Wheeler's (large trailers). You can finance those through a dealer like you do a car. They have a resale book value. They diminish yearly so you can check the loss every year on line by going to NADA Used Trailer guide and see what they are worth. If you have to get out you can sell the trailer back to a trailer dealer. Hope this helps. Best, Sid

    1Reply
  • Jimmy Kennedy
    OP
    Lake Worth, FL · Member since 2017 · 23 posts · 1 vote
    9y
    I appreciate the insight Sid.
    0Reply
  • Sid Leibowitz
    Contractor · Glen Cove, NY · Member since 2016 · 209 posts · 89 votes
    9y

    Jimmy. Some sellers use trailer, mobile home, modular home as interchangeable descriptions. There is a difference in their classification. Make sure that you clarify what they are selling to become educated. Especially as it relates to code compliance, zoning and taxes. Is there school tax? Could be a back ended deal. 

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  • Jimmy Kennedy
    OP
    Lake Worth, FL · Member since 2017 · 23 posts · 1 vote
    9y

    Sid. Ok forgive my ignorance, but when you say "Back ended deal" does that mean this is a bad deal? I'm thinking maybe I would be stuck with moving the property if the park requesting this. I really have a lot to concider. 

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  • Rachel H.
    San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    9y

    For starters, you'll probably need to do your due diligence on the market in your area. Personally, I don't know many investors who work in parks that have HOA. Though, I've met homeowners who have. Unfortunately, HOA fees are something you cannot control. There's a lot of debate among investors regarding the pros and cons of buying in an HOA.

    If you can find an investor already working in the park or build a relationship with the park owner, you may be able to partner up or do a quick flip on the deal. 

    Hope this helps. Good luck! 

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  • Jimmy Kennedy
    OP
    Lake Worth, FL · Member since 2017 · 23 posts · 1 vote
    9y

    Thanks Rachel. Yes, the HOA was a factor after I did a little more research. I too will be avoiding HOA starting out. It seems to add complication that I am not ready to sort through as of yet. Thanks again for the advice.

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