All Forum Posts by: John Arendsen

Larry's spot on. They bought up most of the "SHADOW INVENTORY" from the '07-'10 crash. Plus you have to have a substantial amount of $$$ to play with hedge funders.

Bernie is spot on about the SoCal market. I'm working on an old Pre HUD mobilehome in a resident owned park. The lot's worth about 30 to 40k but the comps are coming in at about 130-150k.

The heirs are from out of state and just want to get the property off their shoulders and be done with it. The home is a toilet and needs to be removed. Plus since it's a pre HUD MH it could never be financed.

So I've offerred 30k (the value of the land only). If accepted I'll remove the heap and install a new Manufactured Home for about 80-90k including demo, site prep, ancillary items i.e. decks, steps, shed, carport and patio cover. 

This will bring me in at about 110-120k and leave me a 40-50k ROI. The entire turnaround should be less than 90 days and the HOA fees are only 170/mth (front loaded in the rehab budget along with the property taxes reassessed at 1.2% of adjusted).

I'll take deals like this all day long be they stick/site built or MH as long up to 500k ARV as their in the path of progress.

Just remember Mobile/Manufactured homes just like traditional RE is a very local biz and every geographical area has its own demographic and economic dynamics. Also there's a lot to be said about investng in a rent/lease park community vs a resident owned community or private lot/parcel. 

But the most important dynamic to consider above and beyond all else is whether the MH is in the path of progress and/or a geographically desirable area. I've seen folks take a big hit buying real cheap MH's in run down derelict parks or neighborhoods.

Lastly, you really need to study the comps for site/stick built homes before you separate yourself from your hard earned doe, rey me. If a person can purchase a SFR for close to the same as they could an MH why on Earth would they choose the MH?

Pre HUD Manufactured Homes (manufactured before June 15, 1976) in lease/rent communities that are not in the path of progress and have no rent control can be a real bad investment.

That stated, Pre HUD and newer MH's in resident owned communities can be a great investment. I'm looking at one today in a resident owned 55+ senior community for 30k with recent comps at over 150k.

It's a pull out but as a dealer I can put a new one in and do all the necessary demo, site prep, infrastructure upgrades, permitting, etc for about 75k and resell it for 150+k. Or add it to my rental portfolio as it's in a ROC and has no subletting regulations.

Daniel, on your breakdown I didn't see an labor costs.

Hi Patrick, If you don't mind I would love to have the contact info for the person/s who are selling those two car washes. We are aggressively looking for car washes Nationwide and are cash buyers.

Gene Hacker Think I'll come up to Bakersfield and hook up with you. LOL! Great profile.

Curt Smith, I tend to stay away with seller financing in Cali. Additionally, I've been hearing the drums beating in the distance about some of these creative financing solutions so I remain somewhat skeptical at this point.

Steve Lemke Ha! That was my question. I'm still waiting to see the answer I want.

Jon Klaus That's a great model for Texas but the entry level (price point) for MH's on land in Cali makes things a lot more interesting not to mention challenging.