Seems to cheap too pass.Should I?

Question

Found a single wide mobile home for sale in a park. Owner has it for sale for 5500 but says she’ll sell to me for 2500. Park fee is 300.  Previous owners smokers, ceiling looks rotted and insulation is coming through 3 large spots but she says it’s been repaired. No carpet in master, floor is spongy, and shower walls show rot. Cupboards removed to install large fridge. Hard to find comps but I think arv would be between 7-10k. Should I run away? This is in Anderson ca 96007 flip or possible lease option? I have analysis paralysis.

Mike G. · Answer

@Michael Ware

Found a single wide mobile home for sale in a park. Owner has it for sale for 5500 but says she’ll sell to me for 2500. Park fee is 300. Previous owners smokers, ceiling looks rotted and insulation is coming through 3 large spots but she says it’s been repaired. No carpet in master, floor is spongy, and shower walls show rot. Cupboards removed to install large fridge. Hard to find comps but I think arv would be between 7-10k. Should I run away? This is in Anderson ca 96007 flip or possible lease option? I have analysis paralysis.

Michael, there are several things that become very apparent from reading your post and i dont say this in a condescending manner by any means, think of it more as a learning curve because we have all been there, lord knows i have.  Here is the thing.......

After reading your post all i took in was " I dont know what I dont know!!!"

while that is an awakening for you, its a chance to feed you some knowledge in this January 1, 2019 about mobile homes and the moving parts within them.

1st of all, MHPs in CA are a major pain, and analysis paralysis isnt always a bad thing,

in this case run from that deal. here is why........

that mobile home is  POS.

2ndly you i can tell from the info you posted that you dont know about Dodd-Frank or the Safe Act of 2009 which is harsh laws that come down on investors carrying financing to unscrupulous low income buyers of would be mobile homes in parks or on land.

California is very strict and on the renter/tenants side much more than your side any way you slice the pie. Tread very lightly if you decide to purse this however i would not.

California has a division of government that looks into such deals as your looking at and its just not a win/win especially for you. I would pass. its not worth the headaches.

this is a classic case of " i dont know what i dont know " that would really hurt you in this deal.

Yes the barriers of entry ($$$) is low, but regardless of that, your teetering on a slippery slope here my brotha.   a hard PASS.

Jon Allen · Answer

Don’t know why you would touch that. Even if you got it for free it’s not worth your time.

Mike G. · Answer

@Michael Ware

Thanks Mike G. I did back out of it this morning and I’m glad I did, especially after reading your comments. Thanks for the info and reassurance!

Michael, your most welcome bro. Im glad I could help you out to make a decision and the right decision.

I Always evaluate any prospective deal on a comparative of upside versus downside.  Pros vs Cons. . . . . and also which you already did, use BP as a resource to run deals by others who are more experienced and let them weigh in and give you candid, unfiltered feedback which is in itself a great luxury to have at your fingertips. .  . all the best in the new year.

if you have any other questions about mobile homes or mobile home parks feel free to PM me or post in the forums, if i know about it respond as im pretty active on here .

Dylan Vargas · Answer

@Michael Ware Welcome! What is the park like? Are you ablate do the repairs? Anderson isn't the most desirable place but close to Redding. I see a lot of work to make this happen and stuck with $300 monthly payment. Run Forrest run!

Jay Hinrichs · Answer

couple things.

1. can you have a rental in that park.. not all parks allow you to rent the units.. thats first

2. its a POS no question..

3. with the fire situation nearby .. it could rent to low income family pretty easy .. so maybe rent it long enough to make some money then just give it away.

Michael Ware · Answer

Thanks Mike G. I did back out of it this morning and I’m glad I did, especially after reading your comments. Thanks for the info and reassurance!

Denelle Kaufman · Answer

You don't say how old the unit is.  But I can't see this bringing much joy.

Dennis M. · Answer

Too cheap to pass ? Um no , you can pass

Seems to cheap too pass.Should I?

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