First post here so hope I'm not doing anything incorrectly?!
My grandfather gifted my uncle his Mobile Home 3ish years ago when my uncle moved in to take care of him. My grandfather has since passed (lived a long fruitful life) and my uncle didn't qualify for the lease through the property management company in order to stay in the home (I don't know what his income is but I think it's pretty minimal). Anyway a long story long he called me yesterday frustrated that the management company was emailing him and based on what emails he forwarded me and reaching out to the management company he has to sign a transient storage agreement which basically says that he agrees to pay $800 a month until he either sells the place or moves it. My uncle told me on the phone yesterday that he'd just like to be out from under it and he wants to sell it for $5k, to which I replied don't sell it for $5k unless you're going to sell it to me for that. Anyway I'm thinking about giving him a real cash offer to take over the property, make some updates and sell it.
What I've done
- 1.) Called the Management company to confirm what my uncle needs to do and if he owes any additional fees beyond April rent and they've confirmed he does not.
- 2.) Emailed the management company to see if I were to get title of the home could I be on the transient agreement (waiting to hear back).
- 3.) Looked at other homes in the park to see what recent sales were and reviewed pictures to verify shape the home is in as well as fixtures and amenities they have.
- 4.) Talked to an agent who will do a walk through with me next week.
- 1.) What other due diligence do I need to do? Things to specifically ask the management company?
- 2.) Should I have an inspection done on the place before hand?
- 3.) This seems like a slam dunk but feel like I'm missing something here.
- 4.) Am I allowed to own a Mobile Home in a 55 and older park? (I'm not 55) Based on forums I've read it seems like I should be able to own it, but the management company didn't get back to me on that question, but they responded right away to other questions.
Currently I've agreed to help my uncle pay rent if he needs next month and he can pay me back when he sells the place. At any rate I think if I put in 10k of work the return would be 50k+ more than selling it as is. I think it would sell for 60-80k as is.
Updated about 1 month ago
I've reached out to the county auditor office to get my next steps, and understand if any taxes are owed. Did a walk through of the property, there is some damage I wasn't expecting but it should still be within budget.
@Ben Galbraith The first thing you need to check is if you can even get the title to the home. See if you can talk to the local government entity in your area in charge of titling and re-titling mobile homes. Explain to them the situation. Ask them what you need to do to get the title to the home.
Also, you may need the serial number or the identification number of the home for them to look it up. Aside from the title, you'll have to check to see if taxes are paid up on the home. Check with your local tax entity to see if any taxes are due on the home and/or coming due. If there are taxes owed, you'll have to take care of that before you can get title to the home.
Next, you'll also have to check to see if there are any liens on the home. Again, this can be done by talking to your local government entity in charge of titling and re-titling manufactured homes in your area. They should be able to give you more information on the home, if you have the serial number or identification number for them to look it up.
Lastly, you'll have to see if there is any lot rent owed on the home. Since you're already talking to park management, they should be able to tell you. Any lot rent due on the home will also need to be taken care of before transferring the title over.
Hope that helps. Best of luck with everything!
@Rachel H. Thanks this is helpful. Good to know I'm on the right track! I have called and emailed County Auditor office to find out what my next steps are in transferring the title, as well as if any taxes are due. I'll be sure to add lien's to my list of things to ask. It's looking like I need a "Real Estate Excise Tax" form in the state of washington, but with covid the court house building is closed to the public and so far haven't been able to find clear instruction on how to obtain one. And I do know that there is rent owed on the place, but of course they will not take payment until I have title in my name. But I've been in communication with them and so far they have been accommodating. Your inputs are appreciated!
Make sure DOM comps for 55+ in that area align with your goals. Sometimes those can sit on market for awhile, and I live in one of the top states with oldest population.
@Dillon Cook Thanks for the tip. Something I hadn't really thought of, but if it sits on the market for months then my expenses shoot through the roof with monthly rent going out. Cheers!