I'm new to mobile home investing and I would like to get your opinion on purchasing mobile homes that were built before the HUD passed the manufactured housing standards in 1976.
The three possible outcomes for my first deal I see as either flipping the home, renting it out or financing the property as a 'lonnie deal'.
While I would feel comfortable flipping a pre-HUD home (as long as it passes an inspection) I'm not sure about holding on to a property that was built prior to 1976.
What are your thoughts?
In most cases they are fully depreciated in real life (worthless). In rare cases they have been well taken care of and improved over the years, but still probably not worth moving. I could see doing Lonnie deals with them in a park where old homes are the norm, but I can't see buying them to hold.
Thanks for the quick response Jon.
The park is actually a very popular and well-maintained country club with golf course, which was first opened in 1972. It seems that more than 2/3 of the homes were built prior to '76. I have not had a chance to take a look at the inside , but from what I can tell the mobile home has been well taken care of.
A lease option where the tenant takes care of the maintance seem to make most sense then I guess - given the fact that the new HUD safe act makes it difficult / almost impossible to offer seller financing.
I just noticed you are Tampa. You might reach out to John Fedro, a fellow BP'er who has extensive mobile home and Lonnie deal experience in Tampa. Just Google his name.
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