I have a client who is looking to move into a single family home. He has a mobile home he bought a year ago, he needs to get rid of it. His pay off is around 56K, and its 600 sqft one bedroom. He asked if I wanted to take it over. I'm not quite sure it would make sense for to take it over. How can I make money with a mobile home? What option are out there?
Can you rent it out and if so how much would you get for rent?
I'm not sure. I've never dealt with a mobile home. What is average rent?
Depends on area and demand. Where is home located? Is it in a community? If so what is lot rent? What utilities are included? If it’s on a private lot who owns the lot? What is condition of home? Sorry for firing questions at you but as you can see there are a number of variables that will effect this potential opportunity
its currently in NM, and needs to be moved to CO. I have no idea where to put it. I'll have to do research
Will cost 3-5k just to get out of current location. Then you will have to either buy a lot that is zoned for this or put it in a community. In a community you will be responsible for lot rent and potentially water sewer and utilities. All this will net against your rental income. You may want to figure out where in CO you want to put the home and then do some research on lot rents and costs in those neighborhood communities. You can then determine if your net income is worth the investment
That is a crazy high number for a 1 bedroom MH. You will easily be into it for close to $65000 by the time you move it and set it up. I have purchased several in West Texas and New Mexico in the last couple of years that are 3 bedroom on land for under $20000
@Andrew Livingston You'd probably have to get a feel for the market out there. Check the rents and values in the area. If the home is in a park, talk to the park manager and owner. They may be able to give you some insight on what exactly you can do with the home. Also, you can also talk to a few dealerships in the area. Sometimes they have people who call but cannot get financed for the homes they have at the time. Renting or buying from an individual like you can be another option. Hope that helps!
$56k owed on a 600sf 1 bed mobile home??? This is a non starter, stop wasting your time.
Updated over 2 years ago
Also: you “taking it over” doesn’t take the loan out of his name....doubtful he could qualify for a loan....wholesaling doesn’t usually work with financed buyers.
Agreed with @Wayne Brooks , the market you would have to be bringing the home into would have to be insane to make the numbers work. That's assuming that you already have a lot of land to place it on because if you brought it into a MHP then you are going to have lot rent which will still kill your numbers.
Also, if you did have a lot of land ready to go in your new market, then there would very likely be a better higher and best use than putting on a 600 sq ft 1 bd Mobile Home.