Help analyze this deal please!

7 Replies

Hello Everyone!

I am hoping for a little assistance on a deal I am contemplating. Its a 2,000 sq ft double wide that was build in 1998. The mobile home is on its own lot, which is owned (not rented). The property needs the basics - cleaning, paint, flooring, appliances. Other than the superficial items - the property seems to be in decent shape.

My biggest dilemma is that I have never invested in mobile homes before. I have alway stuck to stick build SFRs. 

I think that I can pick the property up for around 25k and will need to put another 5 - 7k into it before renting it out.

I should be able to rent it for $800 - $850/month. 

What are your thoughts???

Does it have city services, or well and septic?

@Paul Crawford - It has electric, septic, and city water. The lot is about 1/2 acre with a fenced back yard. 

Originally posted by Account Closed:

@Paul Crawford - It has electric, septic, and city water. The lot is about 1/2 acre with a fenced back yard. 

What city is this in? A local realtor in the area familiar with the rental market may have some insights into what the demand for renting mobile homes might be.

Moble homes are good (dare I say great) as rentals but in my experience terrible for flips. My people in my area, Phoenix, are looking for seller finance which doesn't do in the fix/flip model.

Originally posted by @Andrew Brannick:

Moble homes are good (dare I say great) as rentals but in my experience terrible for flips. My people in my area, Phoenix, are looking for seller finance which doesn't do in the fix/flip model.

 Thanks Andrew. My thought on this is buy and hold. I would like to increase my monthly cash flow. 

Also be aware that mobile homes are normally considered personal property, not real property - i.e., not "real estate".  

That means that most home lenders won't finance them. You'll need a specialty lender who will finance it with something resembling a car loan.  Talk with a mobile home dealer to see if they can recommend one.

I know yours is on owned land, but for the benefit of others, mobile homes are often placed on leased land.

Originally posted by @Charlie MacPherson :

Also be aware that mobile homes are normally considered personal property, not real property - i.e., not "real estate".  

That means that most home lenders won't finance them. You'll need a specialty lender who will finance it with something resembling a car loan.  Talk with a mobile home dealer to see if they can recommend one.

I know yours is on owned land, but for the benefit of others, mobile homes are often placed on leased land.

 Charlie - that's a great point. We are not looking for financing, but I will keep that in the back of my mind for future deals.

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