I currently have a friend who's husband inherited a mobile home . They currently have tenants who haven't paid rent in approximately 6-8 months . The home is currently in default (NOD) the earliest sale sale is in March 2016. The default amount is around 8500.00 . The property is currently underwater , loan balance is about 160k and arv is about 121k . There's no rent on the space . It's a 3/2 with a fenced in 6900 sf lot . Per owner there is some cosmetic repairs needed. My initial thoughts were to try and negotiate a lower price short sale with the lender , fix it and use it as a possible rental . The current mortgage is 675.00 . My other thoughts are to pay the default amount and assume the mortgage . Any thoughts or suggestions would be appreciated.
What in God's green earth attracts you to this opportunity?
Friendship simply . All they want is the frig and freezer and to be able to simply walk away . On the business side of it . I'm curious as to what can or cannot be done with this opportunity. It's the second time this weekend that someone has approached me about mobile homes . Wondering if I haven't been narrow minded about mobile homes
$8500 sounds like a lot to pay for a fridge and a freezer. It sounds like a loser "investment" to me if you are assuming a mortage with $39k negative equity. And that's after repairs? Even if you could negotiate a lower short sale price and keep it rented for over $675/mo it seems to me you would be better off putting your credit to better use elsewhere. That's not to mention it sounds like you will need to put a new fridge in the place if you give the old one to your friends.
I like mobile homes as a business but this one is so far underwater, I'd say walk also.