Mobile Home on a Cheap Parcel as spec house
I ran into a woman a week ago who had a great investment idea, I thought. She told me you can pick up a used mobile home for next to nothing, rehab it, put it on a piece of property with a well and septic and sell it at a hefty profit. She noted a particular geographic area near me that was ripe for this type of investment. I did a little checking and, indeed, I think I can get a parcel for $50K, and a decent used mobile/manufactured, in need of updating, for $25K.I think a septic could be done for less than $10K. If a water meter is needed I think they are pretty pricey, like $25K. I don't know about drilling a well but I think it would be less. Then I need to pay for moving the trailer ($3K), home rehab (maybe $20K), some grading and pouring the perimeter foundation and steps (maybe $10K). I don't know about the permit fees. That's a wild card for me at this point, but I'll say $40K. So I'm getting a total of $173K. I think I could get some of those costs down with some more leg work and research.
I saw comparable properties for sale in this particular area for $200-$275K.
At a sales price of $200K it doesn't look that inviting, but closer to $275K (which is the end of the market where I think I'd be) starts to look appealing.
Does anyone have any thoughts or experience with this?