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.
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
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.
What kind of home is this? Single wide / size / age?
How does the home you can by for $7k compare to the comps your seeing for $30k? Are they truly comps? Would it require any updates or improvements etc?
On the new park side - is the lot set up for a home like this? Does it require any foundation/concrete work? Electric service up to date? Will the park cover the cost of these if they need to be updated? Will it require new skirting?
Most parks love for someone to move a home in - some will even pay for the move. If its a park in high demand, that's probably not the case though. A lot of times, the cost to move a home from one park to another is just not worth the effort. By the time you add up the expenses to move it, like you listed, plus improvements it may not be much more to just purchase one already there or even buy a new one. A lot of parks have relationships with MH manufactures and can bring homes in pretty affordably. But - heck, it may make sense. Hard to say without more info.
@Joe D. Thanks for the reply. BP locked me out because I accidentally posted this twice on the app. Anyway, I appreciate your input.
I believe this is a single wide mobile home w/ a slide out/ 672 sq/ft/ built in 1969
They are the closest thing to comps I could find. I would not say they are true comps because of minor size differences (1 for sale for $32,998 is 728 sq/ft) and the $7k one needing minor improvements to match interior quality. But they are not too far off from being true comps.
As for the park side, I have no idea. That's kind of why I'm posting this is to get some more input on what is required on that end of it. foundation/concrete work sounds expensive and unlikely it would match the new home.. do all mobile homes have to have some kind of foundation/concrete, or is it park specific? Electric is a good question I would have to look into. New skirting is included with the price of set up, at least that's what I was seeing from a couple websites and over estimated those costs to include that.
I really appreciate your input! I think I would need to call around to a few of these parks to see what they do as far as paying for a new home to be moved in and then I could get a better estimate on holding costs when I find out how much the spot rents for per month, and whether or not they even have a space available/ any other requirements for new homes being moved in.
One thing that is intriguing about this whole process is the idea of being able to create your own comps. My area seems to fluctuate pretty drastically from park to park when it comes to pricing. Parks in nice areas have homes listed close to $100k when parks in bad areas are around $25k. If I could get my hands on a home, then I can move it to the nicer area. obviously this is just an idea in a very elementary stage but I've never heard of anyone doing this for that reason, which is why I posted the question.
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