Orlando, FL · Member since 2019 · 43 posts · 4 votes
I came across some land for 84,000 it has 3 mobile home which pay 499.00 a month for the land they own the mobile home so they do all the maintenance and repairs all I have to do is pay the taxes and pay 250.00 a year to clean the septic tank is this a good deal or am I missing something. They can move the homes when ever they want does it but does it cost a lot of money to move a mobile home. The owners have lived there for a long time so don't think they will be moving anytime soon. Any advice would be great Thanks
Summerville, SC · Member since 2018 · 553 posts · 252 votes
6y
@Matt Arden
Finding funding on MHPs is quite a challenge. We refinanced one, and the bank only gave us the value equivalent to vacant land. This was despite it being a MHP for the last 15 years. I fought the appraisal for not using a different methodology, to no avail.
At any rate, yes, you have an awesome deal. You got $1500/mo in mailbox money (very little maintenance - they can't damage your dirt) and a purchase price of $84k. Consider an $84k house. Would it rent for $1500/mo? Not likely. And what repairs would it need? Would likely need something. You have a very passive turn key asset tenants in-place staring you in the face. Do it!
As far as folks moving, as long as they're happy, they typically DON'T move their homes. The cost being the biggest deterrent (it's cheaper to keep paying lot rent, rather than pay moving - here in SC - $4k to move a SW, $6-7k a DW). Most don't budget to save for moving expenses, or look at things in this light.
Flipper/Rehabber · Seattle, WA · Member since 2015 · 333 posts · 459 votes
6y
@Matt Arden
Call local mobile home movers for prices in your area.
If someone moves a home you can replace it with either a new one or used one. You can then rent it or sell it and continue getting the lot rent. You can also raise the current rents while you own the property. The income makes the price look very attractive. Look at it seriously.
Orlando, FL · Member since 2019 · 43 posts · 4 votes
6y
Do you know what kind of loan I should be looking for the only loans I see are land loans or loans for mobile homes and the loan not sure where I should start looking
@John Teachout they pay 459.00 each for the land and 40.00 each for water trash and sewer water from the city
Do they have their own utilities set up or does the landowner pay them and then get reimbursed? If there's sewer from the city, how does the septic tank pumping play into the equation?
Rental Property Investor · Anderson, SC · Member since 2017 · 42 posts · 24 votes
6y
@Matt Arden Who pays for water? Remember to set aside funds for infrastructure maintenance: driveway, interior road/path, rainwater drainage repairs/maintenance, septic system repairs, etc.
Summerville, SC · Member since 2018 · 553 posts · 252 votes
6y
@Matt Arden
Finding funding on MHPs is quite a challenge. We refinanced one, and the bank only gave us the value equivalent to vacant land. This was despite it being a MHP for the last 15 years. I fought the appraisal for not using a different methodology, to no avail.
At any rate, yes, you have an awesome deal. You got $1500/mo in mailbox money (very little maintenance - they can't damage your dirt) and a purchase price of $84k. Consider an $84k house. Would it rent for $1500/mo? Not likely. And what repairs would it need? Would likely need something. You have a very passive turn key asset tenants in-place staring you in the face. Do it!
As far as folks moving, as long as they're happy, they typically DON'T move their homes. The cost being the biggest deterrent (it's cheaper to keep paying lot rent, rather than pay moving - here in SC - $4k to move a SW, $6-7k a DW). Most don't budget to save for moving expenses, or look at things in this light.
Phoenix, AZ · Member since 2019 · 115 posts · 54 votes
6y
@Matt Arden - How is it zoned? That would be the first thing that I'd check, make sure that it is zoned correctly as a mobile home park or that it at least allows mobile homes on it, and more than one. The other owner may not have checked, just plopped them there. I'd also see how many you could fit on the lot?
If it is large enough, and has the infrastructure in place, it could be a GREAT investment because you could add more over time and other improvements to increase your cashflow.
As far as financing, you may have a tough time there since there are only 3 on it. If I were you I'd call around to the smaller local banks and let them know what you have and see if any are willing to lend. Especially if there is upside, put together a little business plan and dress professionally and pitch it to a few different local banks. Worst thing that happens is that they tell you no.
Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
6y
@Matt Arden. Does this property have one or 3 water/sewer taps? What happens if somebody moves and leaves the trailer?? What are the taxes? How big is the property? What’s it worth if it’s vacant? This is what you are buying a vacant lot. Is 84000 a fair price for the lot by itself?? What resale value does the lot have without the trailers??Do the trailers have a lease?? These are things I would look at. RR
Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
6y
@Matt Arden you can’t get a loan on somebody else’s trailer. I bet it’s damn hard to get a loan on vacant land. You might ask the seller for some owner financing. That’s gonna be your easiest loan. RR
Contractor · Seattle, WA · Member since 2019 · 339 posts · 325 votes
6y
@Matt Arden listening to the BP podcasts on mobile homes, it sounds like there is a 99.999999% chance that people will ever move their homes due to the cost
Orlando, FL · Member since 2019 · 43 posts · 4 votes
6y
@Parker Eberhard thanks I kinda figured when I look up the price to move them now I have to find a loan to buy them have to be a cash offer have to weigh my options thanks.
Orlando, FL · Member since 2019 · 43 posts · 4 votes
6y
@Ralph R. These all things I have to find out and with the loan you are right which is where I am at not my brother has the money not sure if he wants to do it waiting on his answer now thanks for the advice.
Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
6y
I am assuming its city water and the tenants are paying for it.
If that's the case its not a bad deal. $28k per unit that is grossing $500 a month.. It would be nice if there are empty pads on site where you can expand.
I would still attempt to work down to $25k per unit or even less..
I agree with @Andy Bauman. How is it zoned? If its not zoned correctly then you may not even be able to replace the Mobile Homes that are there, should the current tenants leave and take there .
Financing is out there, but you may have to look a little harder? Good Luck!!!!!