Found a discounted manufactured home I'm going to buy in Colorado. Minimal work, then rent, and eventually sell. Done several houses, but this will be my first mobile/manufactured. It's just the "structure", not the land. Anything tricky about closing on one of these? It's just signing over the title like a car, right? Any other advice? Cheers!
Just like a car in most states, sometimes you don't even have to register them. Some older ones don't even have a title with the state/town, just a bill of sale because it is personal property. What year is it and how much? How much work do you think you have to do? It can be harder to sell MH than houses due to the park owner, make sure they are onboard with you flipping it. A bad park owner can screw you over!
@Russ Draper Year is 1977. Buying for 18k, and needs about 5k in work on the conservative side. The owner was rehabbing it himself, but needs the money. The remaining work is basic install of fixtures, appliances and touch-up. Plan to rent it when done.
My gut reaction is that is very expensive for an old MH. I would offer half that, not having seen it.
I would beware of anything older than 1990 when it comes to mobile homes. They are expensive to move and the roofs only last about 20 years before they need to be redone. Also-three bedroom units are much easier to sell than two bedroom units. I would also check with the property owner and see what the terms and conditions of the mobile home remaining on the lot are, at least until you have time to move it. I would also check on the state and local taxes at the local taxing authority. Again-I would be super weary of this one as it is just too old to mess with in my opinion, it needs as much rehab as what the actual value is. Just my 2 cents:)
John Fedro would be a good resource to run this deal past. He's here on BP and specializes in mobile homes/manufactured homes.
No way I would do that deal. I have bought more than a dozen of 2005 and newer attached to land for that price and lower. My guess is the value is $5k or so.
@Thomas Beuerman If you're going to be moving the mobile home, be sure to put trip insurance on it for the move. Other than that, check the liens and make sure you can get title. If renting on someone else's land, check to make sure the lot rent is paid up. Hope that helps!
My gut reaction is that this is not a discounted deal at all. For a home that old I'm paying a few thousand maybe. Unless this is a super fancy home in a highly desirable resort area I don't see how these numbers can make sense.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing