All Forum Posts by: Bill Neves

@Alex Elliott

Older than 1976 (when building codes were standardized for mobile homes) can have aluminum wiring and some other items that may need to be addressed, depending on building code requirements in your area.

For instance, some areas require wiring pigtail terminals rated for aluminum so it won't corrode and possibly start a fire.

May need sheetrock surrounding heater, hot water heater, cooktop and stove.

May need egress (exit) windows in bedrooms.

Easy to check with local contractor, handyman or city/county planning. Caution: asking planning dept may generate questions and permit requests.

Have fun!

I've done 1 on a lot and on my 29th unit in various parks in 3 states. 

Caveats: 
1 - If you do them on lots you can rent. Most parks require residents to be owners.

2 - If you do them in parks: They're cheaper because you're not buying the land. Test one in a park, if you do any there, before you do more - could have a renegade park manager or owner. I had a major issue in 1 park and almost moved 2 units because of it.

3 - Be aware of seasonal population in senior 55+ parks in the south. Snowbirds can mean a park is vacant for a portion of the year. i.e. one park I stayed at in Mesa, AZ is 95% vacant from May to Oct. That can mean paying park rent with empty units during the summer.

Have fun!

@Ken A. @Matthew Bradley

FYI - Dodd Frank addresses residential property including mobile homes. Just have your ducks in a row and you'll do fine.

@Matthew Bradley 

Yes. Deals are available everywhere. It takes a lot of networking and 'farming'. You have to establish some relationships and then cultivate them. Drive parks (plowing), marketing and talking to sellers and managers (planting seeds), then do deals (harvesting).

For instance, a mobile home park manager I now work with, initially told me he didn't allow contractors to work in his parks. He manages 4. I kept at him (nicely) and he allowed me to do one to try me out. Before I was done working on it, he offered me another one for $1000 and a 3rd one for $500 with 2 months rent included. Those 2 deals netted $9500 each. 

While I was recently traveling for a month, he called and said one came up for sale and If I offered $x he was sure I could get it. So he is now a bird dog. Now, full disclosure, this is rare but takes some 'in the field' work. And the deals are out there.

Have fun!

Since it's a manufactured/modular on a lot, I've used Zillow and MLS solds to get comps. Since it's next to houses that will give you 'some' idea. Not perfect but should be close.

Manufactured home friendly realtors are a plus. I just got 2 new deals last week. One was listed with a realtor, one was a FSBO. When we're done with repairs, I will sell the realtor deal thru the same realtor, that was our agreement to get the deal. Don't have to, but I want the realtor to find me another deal. The other will be a FSBO thru me.

Nothing against realtors, but I normally buy and sell without realtors. I like to look the seller and buyer in the eye and negotiate. Normally can't do that with realtors.

Have fun!

Depends if it's on a lot, land or in a park. Lot and land possibly MLS. But not always useful.

For parks - You can check MHVillage for prices in your area. Investor group, Craigslist, park managers/owners, MLS. It is sometimes difficult. Something that you get a handle on once you've done a few in an area. I don't go by comps. I have done enough in my area to know price ranges.

I have sold them for higher than people told me I could get. Eye of the beholder!

I deal in 55+ parks all the time. Just bought 2 more last week to fix and flip. 

Couple cautions:
If you are young, it could be tougher than if you're older.
Smaller slice of the market.
Finished sales price can be lower.
Park requirements could be stricter. A couple senior parks I've talked to don't allow contractors, to buy and sell. Must be end buyers to live in them.

Pluses:
Seniors 'tend' to have cash. Last 3 we did in senior parks were sold full price for cash.
If you are older, I am in my 60s so I fit in, less neighbor monitoring.

NOW - if you are in the south and a seasonal 'snow bird' area...as Florida is... Use caution. I looked at a few in Mesa, AZ, snow bird country. 95% vacant May to October. If you get a deal there in May you pay park rent until you sell. 6 months empty gets expensive.

Have fun!

Addendum to previous. Just for clarification. Simply changing plugs and switches may not cover the electrical. I bought one with the master bedroom power not working. After checking, we found that the previous owner had switched the plugs but used copper wire plugs. One MELTED and could have burned the home down.

You can get aluminum rated plugs and switches OR put the terminals on existing. Get a mobile home repair book to help with all this. I got these when I started - Foremost "Mobile Home Fix-It Guide" and John Krigger "Your Mobile Home" both avail on Amazon.

Mobile Homes newer than 1976 are usually fine. Older ones may have aluminum wiring. If someone lived in the home, as a consumer and sell, it, that's one thing. Use caution if you are an investor. There may be some requirements in your area.

As an investor, Labor and Industries (building codes) in my area requires that Mobile Homes older than 1976 include: 

1 - Wiring converted to the upgraded type. (Terminal caps and gel available at Home Depot or Lowe's. Cheaper than replacing plugs and switches.)
2 - Sheetrock behind cooktop, around heater and hot water heater.
3 - Egress (escape) windows in bedrooms.
4 - Permit and inspection.

If you buy 1980-new, no need to worry about this post. :-)

Have fun!

@Danielle Wattsand @Harold Anderson

Critical in any investing is to keep costs down. I've had a few over runs that kicked mye in the butt, too. Make a list of repairs BEFORE buying and stick to it. As an investor, YOU are not going to live in it. Fix to clean, safe and liveable, sell and move on. 

More fun is to get a good deal, sell as handyman special for a little less $ but a lot less work. And move on.

My first 17 mobile home deals, I fixed 1 and cleaned 1. All the rest, sold 'as is', 'handyman special', 'fixer special', 'haven't had time to do the work, you fix and save', deals.
@Harold Anderson