Hi! I'm talking to a motivated seller about a mobile home on an owned lot. It has an a-frame shingled roof, and is surrounded by traditional site-built homes. I'm pretty confident valuing purchases for standard flips, but I'm not sure how to value a home like this. How do I adjust compared to site-built comps?
I could really use some help, especially from any local Sacramento area investors who might be interested in a deal like this!
How are you determining value ?
Hi Pavan, determining value is exactly my problem. I'm not sure how to do this for a mobile home in a neighborhood of stick homes, on an owned lot. I'm not sure how to comp it.
It's entire value is based on it's monthly rent right? Since mobile homes go down in value, its just whatever you can get to rent it? Then maybe sell the lot later?
Maybe break it up... what is an average lot in that area worth? What is the average rent for that much space?
Value the lot , and throw in 5 grand for the mobile home . If the other homes are in nice shape you rent the mobile for a while , then build a new house
Apologies for the slow follow up on this one. I would also value it as a lot purchase, then add a small amount for the mobile.
@Zachary A. Depends on your exit strategy. If you're planning to buy and hold, determine the rent to see if the price can support the market. Also, you want to make sure there's demand in that area for that specific property type. Good luck!
Join the Largest Real Estate Investing Community
Basic membership is free, forever.