1974 Skyline Double Wide Wholesale value?

Question

My private lenders want me to get the 2010 NADA book. The sellers want $18,500-17,500 for it, but my private lenders say that's way too expensive because a brand new Skyline double wide would cost $20k.

Do you know the value of the home (I've done the repair costs which are minor) or where I can find the value of the home for free without buying the NADA book?

Account Closed · Answer

A 1974 is worth zero in my area. You have to pay someone several hundred dollars to come and disassemble it.

A mobile home that old can't be moved in my county-- maybe in the entire state. They won't give you a permit to  move it.

What old mobile homes are worth here is the value of the lot they are on. If it is in a park, there is no land value.

Park rents are pretty high and I occasionally see or talk to people who are trying to give old mobile homes away and not finding any takers.

The cheapest new double wide I've ever seen was $38,000, and it was double wide, but short, so not much square footage.

Set up costs can be as much as $30,000 if you have to bring in utilities and install a septic. Ground work, leveling, trenching for footings can up the bill considerably.

A park, though, should have a space that is already to just move the mobile on and connect it.

Peter Haymond · Answer

Thanks for your reply Jon! I've bought both John's books and Lonnie's along with reading them multiple times.

I believe CA is just tough in general to do those deals but you have some excellent advice in that I need to learn my market more. Thanks for your help! Seriously, as a 21 year old college student it really helps to have input from guys like you in the field.

Jon Klaus · Answer

It could be that the retail buyer is buying into the park and $18k is the price of entry. This is a CA thing and wouldn't happen in the rest of the country. Buying for $15k to sell for $20k would be unacceptabe for most Lonnie dealers. If I were you I'd pass until I understood the local market much better. Probably at that point you'd find other deals that make more sense.

Do you really want to do Lonnie deals?  Your $15k could do 3 or more deals elsewhere in the US, creating notes worth as much as $50k. Check out John Fedro's blog here on BP on mobile home investing. Also read Lonnie Scruggs' Deals on Wheels. You should get excellent ROI on your time reading Fedro and Scruggs.

Peter Haymond · Answer

Okay so now that people have given their input, I'm contemplating whether or not this is a good deal. All of you are from other states although I do wonder about the value of the home if most of you say that it has depreciated to almost nothing. If that's true then how come a buyer was willing to pay $18,500 cash? Maybe an emotional buy?

I was thinking of buying it for $15k and selling it for $20k seller financed. At best with interest my private lenders could collect $5k if they're willing to do it.

Would you guys suggest newer years? I've tried but the prices are WAYYY too high in Northern California by the bay area. In my area...this might be a good deal but this is my first time doing a mobile home deal and I lack experience.

Francis Dai · Answer

I'm in the Bay Area as well, I've been quoted 13K to move and set up a double wide 20 miles away.

Jon Klaus · Answer

I haven't moved any myself, but I read on another forum about $5k for delivery and setup for a DW. Includes delivery,  joining halves, foundation, leveling, skirting, and connecting utilities. Of course there can be variables around any of these items. For example, does it need new septic?  I paid $5400 for new septic last year.  Need FHA foundation?  More $$, but worth it in my opinion if you want to sell to an FHA buyer now or in the future.

Peter Haymond · Answer

Leslie how much do they cost?

Leslie A. · Answer

I think your lenders are mistaken about a brand new doublewide costing $20k.   No way.  I wish they were that cheap.