Investor · Ocean Isle Beach NC · Member since 2016 · 6 posts · 4 votes
I'm in Mesa, AZ, which, if you haven't toured, has too many 55+ manufactured home communities to mention. Homes can date back to the 80's and can be had at very low prices when in need of rehabbing (decent spread as a percentage of the ARV). Of course, resale can be limited by the over 55 requirement, lot fees can be $750 a month, etc. But, we do have a wave of under prepared retirees looking for a low cost option coming (of course, nobody reading this). Anyone have any experience or insights?
@Matthew Lewis Flippers have had great success in 55+ and it tends to be very competitive market in my area. It’s an easy market to understand in terms of comps, especially with having 4-10 models in the community. Not all 55+ communities are the same in the sense of desirability. If “limited buyers” is what you fear. Check recently sold homes in community/other guys doing what you are looking to do. If folks are buying and houses aren’t sitting. I say go for it!
I myself have been trying to get one in the works, but have been beat out with cash offers. Sooner or later, I’ll get one!
@Matthew Lewis I don't have any direct experience, however I was curious to know your thoughts on Arizona? I noticed in your profile that you recently moved there, where did you live previously? I've been considering making the moving from the east coast at some point, potentially Northern Tucson or Sedona area.
Cody: In 1995, after living in Raleigh, NC, and Falls Church, VA, I moved from Manassas, VA to Evergreen, CO. Was 22 years on the Front Range (Denver metro and foothills), then 3 years in Montrose, CO (on the Colorado Western Slope, population 20,000, 35 miles north of Telluride).
Maricopa County (Phoenix/Mesa metro) has 3.8 million people and this might need to be considered as much as the fact that this year, the area had more than 100 days over 100 degrees (105 forecast for today). Both can be tolerated. The area has a lot to offer. Tucson is actually at a higher elevation than Phoenix and is a couple of degrees cooler in the summer. Sedona is magical. I don't have to buy into the vortex/spirituality business to feel the calming and rejuvenating effect of its beauty. And, it's only about 2 hours drive from Sky Harbor airport.
As I meet more people in this area, I find that many have their scheme for how they get out for a break in July and August. A cabin in the mountains is a common aspiration (Payson has had tremendous growth for this reason). I'm keeping my house in Montrose.
I'm originally from the Seattle area. Visit there in July and your brain may go into overdrive trying to figure out how you can move there. Visit here in the winter and see what happens.
@Matthew Lewis Flippers have had great success in 55+ and it tends to be very competitive market in my area. It’s an easy market to understand in terms of comps, especially with having 4-10 models in the community. Not all 55+ communities are the same in the sense of desirability. If “limited buyers” is what you fear. Check recently sold homes in community/other guys doing what you are looking to do. If folks are buying and houses aren’t sitting. I say go for it!
I myself have been trying to get one in the works, but have been beat out with cash offers. Sooner or later, I’ll get one!
@Matthew Lewis I manage a number of Mesa properties in the 55 plus arena and have great success with them. Of course, the ones I manage are long term rentals. The base of prospects tends to be very reliable and cash in hand is common. Most of the tenants tend to be long term with minimal turnover and rarely issues.
Parks with lot rent could be a good path to consider. Some of the parks have an internal, almost built-in marketing system for properties that I would carefully evaluate for comparables, etc. Make sure the park is OK with what you want to do, how you want to improve the property, plans, and value.
Be cautious not to over-improve as much of that crowd is looking for affordability, yes they want clean and sharp but aren't always focused on the latest cabinets, finishes or look. A very sharp and clean unit that might seem a bit dated to some will do just fine. They don't like to do repairs or finish things so it should be truly move-in ready.
The 55 plus market is also seasonal, yes properties turnover all year but a bulk of them will be in the first quarter in Mesa.
In summary, know your market, control your costs, and hopefully, have a unit ready in January in a perfect world. Sort of like every other flip with the added seasonality of the market.