I have a tenant in my park in WV who are looking to buy a house and is going to move out. She has a 2013 Clayton single wide ( 14 * 70 ) trailer she wants to sell. She paid $35000 for the trailer 5 years back. Any idea what will be her trade in /wholesale price? Thanks!
@Aman S. are you looking to buy the home?
@C.K. Ebert Yes, I am considering buying it.
Got it. I would ignore the trade-in value and make an offer that works for you. Otherwise, what's the point?
Agree. Just want to see what is the fair market value. Any idea?
Sorry Aman, I don't know that market or the condition of the home. Your best bet is to check VMF Homes - https://vmfhomes.com/
@Aman S. The FMV is close to 0. It will cost the tenant between $3-7K just to move the home. This does not include costs to store and move into another park.
Best bet, tell her you can try to facilitate selling her home to an existing tenant for a small fee. Otherwise, POH become a major PITA.
@Bill F. should be able to provide more insight.
@Omar Khan This is my first park. I mostly invest in townhouses and single-family homes. When I bought the park I wanted to sell all POHs. Now looking at the numbers, lot rent is $275-300 and home rent is $700. So I am thinking about buying this and renting the home or maybe buy this and sell seller financed. There is a good demand for mobile home rentals.
@Aman S. Most owners avoid it because even though the #s look compelling, it becomes a PITA to manage payments over the long-run. Nonetheless, the dynamics of your market, your park and your strategy might be different than the average park owner.
Plus, you should definitely try this strategy especially if you get a sweetheart deal on this park.
One way you can do this is to act like a middleman and take a share of the rental income i.e. if the park is rented for $300, you can take a $100 fee to manage everything for the existing owner. This way you can you can test your idea without spending too much money.
@Aman S. hard to say what the value is without more details, but unless the home is a dump you probably won't get a sweetheart deal since its so new. I'd pay the $50 to get a NADA report on the home, which will at least get you in the ball park.
You have a good spread between your LR and POH rental so, if its in your wheelhouse to manage rentals and you get a good price, go for it.
Does your LR contract give you a right of first refusal on the homes and/or approval for new owners?
@Aman S. To value the MH, I would look up comps on Zillow in your area. That being said, comps can vary drastically from park to park. What about making an offer based on the 2% Rule (or better)?
you own the park
Most likely whoever buys it will keep it there and of course you make that profit
I’d tell the women what you can offer is only a couple thousand and she is better off selling it herself.
Most likely in a few months she will decide it is easier to sell to you rather than continuing to pay rent on a house she is not living in