How do I evaluate a deal in a Mobile Home Park?

Question

I received a call today from a very motivated seller in a trailer park.  He needs to move by the 5th and owns his double wide out right with no liens.  The monthly lot fees are $450 and the mobile home is a 1982.  I was quickly thinking terms, but he said the park does not allow that.  How do I evaluate the value?  I cannot find the lot anywhere online because most sources (property appeaser, zillow, etc) just list the park.  I have not yet done anything in this situation so I'm trying to get as much homework done before approaching a potential partner to split the deal IF there is a deal.  Looking for all direction and advice, Thanks!

Mark Gruetzmacher · Answer

Adrian Smude

Yes that sounds real pricey.  Not sure how the market is in Florida but for something that old the price sounds crazy to me.  I bought a 84 doublewide about 10 years ago for $12K.  I actually just bought a bigger one back in December 2014.  It was a 1997 mobile on a basement with a 1 acre lot and it was half that cost.  My market is different than Florida but still.   Lot rent sounds maybe ok, my area is in the 200-300 range.  You would have to compare it to other ones for sale in your market which sometimes can be impossible.  It is something I wouldn't even have to think twice about for that price.

Natalie Kolodij · Answer

Sorry for the delayed input.

I'm in Florida right now actually and the only possible reason he wants so much is thst its on a gulf access lot or something like that?

That's an insane price though. I'd say its worth in the 20-30k range max if its in pristine condition.

There was one listed by ne recently for 60k thoand I'm watching it to see what it sells for. I think people don't realize they depreciat like a car not appreciate like a house.

How to find an accurate value....

1. Look up the address for the park on Zillow and tell it it to show you only houses that sold within 1/2 mile. This will at least show you things that have sold on mls in the park and give you an idea.

2. UnfortunTely most mobiles don't sell on mls. So search craigslist and call park manager's and just ask them theirthoughts on price.

3.That price still Sounds crazy. I'd offer him five grand and to empty out and garbage left behind. If he has to go 5k is better than nothing and if he doesn't sell it its costing him $400 @ month for nothing.

Adrian Smude · Answer

@Mark GruetzmacherThanks for the comments.  My thought is to call him back with my best offer which will be something much lower.  I assume he will not take it but you never know if he becomes desperate/motivated enough.

Adrian Smude · Answer

@Josh CaldwellMy gut is currently telling me the same thing, but I don't know much about this are of investing so I'm willing to put some time in to research if nothing else for my own knowledge.  I agree it sounds very high, he says he has to move by the 5th because of work, but he's only moving 2hours away....  Thank you for the comment, @Troy Fisheras well.

Josh Caldwell · Answer

Price sounds real high. Google the price on a new one.  On of the problems with mobile homes is that banks wont finance them after 2008.  So selling it can be a problem  Also if the park wont allow you to buy on terms, will the park allow you to rent the thing?  My gut says walk away.

I know thats not what you want to hear, but some of the best deals are the ones you avoid.

To your success

Josh

Troy Fisher · Answer

@Natalie Kolodij might have some insight to help you out!  She's picked up a couple of Mobile Homes recently! But it seems pretty pricy for a 33 year old double wide in florida. He might not be as motivated as you think.

Adrian Smude · Answer

Thank you @Leslie  A. He gave me his price and quickly said OBO and I think 65K for one that old is pricey without land.

Leslie A. · Answer

First thing is to find out what he says is the lowest he will take