I own property in the second fasting growing county in America. Land that can have manufactured homes is scarce. Trying to find a way to finance purchase and installation of a manufactured home. My plan is to list and sell ASAP.
My wife is a leading realtor in the area so our knowledge is sound. We have done multiple new builds but never this. Current homes in neighborhood are listing at 450,000 and selling at about a 10% cut.
I have a home ready for 145K and the land is free and clear. Also would need septic, skirting, and utilies. So about 165k all in. Possible 290k profit.
@Rachel H. made a great suggestion, I would also add checking with local/smaller banks & credit unions. Generally they will do conventional loans on double wide homes and possibly even single wides if you will be doing a permanent foundation.
Also, I suggest planning on the development & install taking longer than expected as well as the price being a decent amount lower than a stick built home. Even if you have the permanent foundation and convert the mobile home to real estate, generally they will bring a lower sales price than stick built new construction or even modular homes.
@Justin Turner You may want to talk to some local mobile home dealerships in the area. This is exactly what they do day in and day out. They may be able to give you some information and advice. In the past, I've found them to be good sources of information for market insight and referrals. Hope that helps!
@Rachel H. made a great suggestion, I would also add checking with local/smaller banks & credit unions. Generally they will do conventional loans on double wide homes and possibly even single wides if you will be doing a permanent foundation.
Also, I suggest planning on the development & install taking longer than expected as well as the price being a decent amount lower than a stick built home. Even if you have the permanent foundation and convert the mobile home to real estate, generally they will bring a lower sales price than stick built new construction or even modular homes.
If your wife is a realtor, then I would imagine she has a solid idea of value in your area, but I would ask if you have any manufactured houses on the market to use for your pricing data? The markets I've looked at tend to have manufactured housing selling at a significant discount in comparison to site built homes even when both are modern and have similar square footage and room counts. Even brand new manufactured houses on private lots seem to sell for only about what it would cost someone to buy/place them. Is your area significantly different?
@Justin Turner, that was my model for several years with used homes on lots I purchase in a MH subdivision in the Houston area. I bought the lot, installed the culvert and driveway and pad, put in electric and water and septic and owner financed them back out. All of this was done in my ROTH IRA. Affordable housing is so badly needed.
@Justin Turner Reach out to manufactures for the MH, and if you need funding for your systems look at hard money. Your numbers seem great almost too great but if are correct shouldn't be an issue lining up money.