Is this unorthodox, or common?
Hello BP peeps,
I don’t know much about mobile home buying and selling. I’ve listened to all the podcasts and have heard several of them when they focus on mobile homes, but I don’t recall any of them mentioning my question.
Does anyone have experience with or heard of anyone buying a mobile home, moving it to another lot, and then selling it to an end buyer? Most of the times I’ve heard of just involve buying it and selling it in a flipping manner, or wholesaling it. I’m wondering if people do all the front end work of buying and moving before selling the home, or if that’s not a common thing people do.
The deal that made me think of this is a mobile home for sale with a contingency written into the contract requiring the home to be moved upon purchase. My thought was, as an investor, I could purchase the mobile home, move it to a park where there are some good comps, then sell it to an end buyer in said park.
The details:
Price of mobile home: $7000
Estimate of the move: $5000 (40 miles)
Estimate of the set up: $5000
Misc. costs (axle repair, new tires, new tow tongue, holding costs once at new park, etc.): $3000
Total cost: $20,000
Comps: $30,000
All these numbers are pretty conservative and taken from other forums and websites regarding the cost to move a mobile home. I’m sure there are other costs I haven’t thought of, and would love any extra input here. Maybe there are some regulations on the park side of things with like older homes moving in? What would the upfront costs be on the park side for the move in? I’m sure it costs some lump sum amount before the monthly fee of parking it there.
Any and all comments are greatly appreciated.