Texas People - Manufactured Homes Pitfalls?

Question

I'm in Texas. I got the bright idea a while back of buying a small piece of land, drilling a well, adding a septic and moving in a used manufactured home. Then turn around and sell the whole thing as a package.

Luckily, I learned that buyer's will have a hard time getting a loan on it. I have no interest in a cash buyer on this as they could do the same thing with their own money. I've done some digging and come to the conclusion that FHA & VA loans are out of the question after the home has been moved from it's original location. I would assume that I still could sell this to a conventional buyer, but I'm just taking a shot in the dark. If that's the case, I've really limited my audience to sell it to.

I've noticed that the appraisal district's legal description usually has a serial number or label number. When I check the state's website (http://mhweb.tdhca.state.tx.us/mhweb/title_view.js) I really don't understand what I'm seeing when I look it up. This has scared me away from plenty of Foreclosures simply because I can tell there is plenty of room for problems.

My three questions:
1) How do I know for sure it is in its original location?
2) If the mobile home is elected as real property, does it essentially become "one" with the property just like a slab home?
3) Anyone who knows the pitfalls I should look out for regarding title and/or ownership?

Any help would be greatly appreciated!

My three questions:1) How do I know for sure it is in its original location?2) If the mobile home is elected as real property, does it essentially become "one" with the property just like a slab home?3) Anyone who knows the pitfalls I should look out for regarding title and/or ownership?Any help would be greatly appreciated!

Greg H. · Answer

1) How do I know for sure it is in its original location?

You can look up the SOL(Statement of Location) on the TDHCA site by the HUD serial number or owners name

2) If the mobile home is elected as real property, does it essentially become "one" with the property just like a slab home?

Yes if classified as Real Property.  However, it will still have an SOL and can be separated

3) Anyone who knows the pitfalls I should look out for regarding title and/or ownership?

You have addressed the biggest pitfall which is financing.  No FHA or USDA rules of the majority of retail buyers in rural area.  Usually, local banks will provide financing on MH homes but will require 10-20% down which again limits the buyer pool

Most investors that go this route look to keep them as rentals or sell via owner financing

Account Closed · Answer

Thank you for the detailed information!