This will be my very first deal this mobile home is in San Antonio Tx in a Park. It is currently being rented out but the owner just wants to get rid off it. He has a range of what he thinks it's worth but the tenant wants to lease to own well below what the seller wants. I'm a newbie and don't know where to start with structuring this deal and making an offer.
Before you do anything, you need to research the following laws and rules:
1) The SAFE Act and Dodd-Frank
2) The Texas rules on minimum habitability warranty.
3) The Texas rules on needing a dealer's license.
4) The status on the title to the home.
5) Whether the home is Pre-HUD or Post-HUD and what the state and local laws say about safety issues and disclosures in selling or renting a home from that period.
Just trying to keep you out of trouble ...
In addition to the points brought up by @Frank Rolfe , you will also want to familiarize yourself with transferring mobile home titles in the State of Texas. For that you will need to go the Texas Department of Housing and Community Affairs (TDHCA) website: https://www.tdhca.state.tx.us/mh/index.htm. You will also want to engage an attorney that is familiar with owner-finance transactions, so they can draw up the documents and make sure you complying with the Dodd-Frank legislation.
Lastly, are you purchasing the Mobile Home only or does that site come with the sale? If the small plot of land comes with the sale, it's likely going to have to be two transactions, one for the sale on the mobile home (non-realty), and one for the sale of the land (real property). These can typically be done simultaneously and through the same escrow agent, but it can be cumbersome if your title company hasn't handled these types of transactions before.
Thanks @Seth Teel. It's the mobile home ONLY. Everything else is owned by the Park Owner. I have done the due diligence on researching the process for Texas to transfer the title. I still need to seek out an attorney to provide the proper documentation. Thanks!
@Zelda Rogers You may want to figure out why the owner wants to sell the home. It could be many different reasons. But the "why" is important. It could be a problem tenant. Or there could be too many repairs needed to the home. Perhaps, the owner needs some cash and just does not have the money to keep up with the repairs for the home. Whatever the reason, it's best to find out...before you buy. Then decide if it's something you want to get into. The last thing you want is to inherit someone else's problem. Hope that helps. Best of luck!
@Rachel H. Thank you. Yes all those reasons you stated but I won't be inheriting it I'd look for a cash buyer who understands the situation and would be interested in buying it.