All Forum Posts by: Lindsey Torres

I'm not very familiar with costs to repair mobile homes. However, I've renovated a few single family homes. But, I still don't know enough to price a rehab. However, the work that I see that needed to be done is two bathrooms needed a complete remodel. They are full baths, but are small. They need bathtub surrounds, tile on the floors, mirrors, fixtures, texture/paint. Paint throughout the house and carpet throughout. Needs a thorough cleaning. And, the front porch is an eye sore. They used some time of sheet metal to construct it and then painted over it. It could use a brand new wood porch. The back porch needs to be torn down as well and a new one built. The roof and ceiling look good. The roof has a cool seal on it. (I think that's a good thing, right?) The outdoor condensing unit looks good, but the interior unit looks ancient. The sellers said it works. They said the HWT is new, but it was in a closet with a bunch of stuff in front so I never got to see it. The kitchen cabinets are really old and not very attractive, but I may be able to get by. So, after all the rehab, I think it will probably be worth $8-$9k.

I'll keep up with John Fedro's blog. Looks really good. Thanks!!

I have been calling on ads on craig's list. The only motivated sellers that I have been able to find have run down old trailers. Definitely not "Lonnie Deals". Lonnie says that he finds homes that are no older than 20 years and need minimal work and then sells them for double what he has in. 20 years old or newer and need minimal repair?! I have not found this. I went to a mobile last night thinking that this would be the one because the seller was asking only $4,000 for a 16x80, 1986 (still too old for Lonnie) and it was "move in ready". He needs to sell by the 10th of June because he's moving to a double wide. I got there and it was a dump. I wouldn't pay more than $1,000 for and they wouldn't take less than $3,750. They called me this morning to ask what I thought of the place. I told them they were asking to much for the amount of work it needed. Then, they called back this afternoon and I missed their call. I don't think I'll call them back, though. I don't want to seem motivated and they didn't leave me a message. Everyone that I make my offers to looks at me like I'm crazy. Are there Lonnie deals out there any more? Are there other ways to find deals other than craig's list? I have also talked to park managers, left my card with them, offered referral fees, driven through parks and written down numbers from for sale signs. I've been at this for a month. Seems like I should've find something by now. Does anyone have any words of encouragement? BTW, I'm in Oklahoma City. Anyone doing deals here?

Charles, thanks for the advice. I had not actually typed out my exit strategy and figured purchase price based on that. Makes sense. So, here it is:

Sell on owner financing for $14,900 at 12.75% Interest for 10 years. With $1,000 down, the monthly payment will be $205.50. I will receive $2,466 in payments the first 12 months. With a $1,000 down payment, that is $3,466 back in twelve months.

If I pay $2,000 for the home and put $2,000 in repairs (guess, I can’t get in the home and none of the utilities are on. But, the home seems to have been kept in good condition). And $562 in Taxes. $550 in holding costs (2 months lot rent). There may be other liens on title. I still have to check on that. So, assume $5112 into the home. I'll have to reduce my price if I come across other costs.

It will take 20 months to get my money back. I don’t know how to calculate yield, but return seems good. I don’t have a financial calculator.

Moving, set up, including skirting, plumbing, and a deck is paid for by the park I'm moving the home to.

The bank doesn't have an asking price. They are just taking bids. I am lost as to what to bid. I guess I could just make a really low offer and see what happens.

There are a few mobile home parks who are paying for the moving expenses, plus all set up (plumbing, skirting, decking, etc) in exchange for a 36 month contract.

So, basically, if I check title and make sure I can pay all the liens off, and if I pay all unpaid taxes, I won't have anything else to pay?

Thanks for answering my questions! :)

Hi Greg, thanks for responding! I will be sure to verify the serial numbers. The land owners may want to continue to collect rent.....like in a MHP where the park owner doesn't want the home to be moved because they don't want to lose rent. But, maybe that doesn't apply in this situation.

I have never bought a repo mobile home before....or any mobile home for that matter. I went out today and looked at a repo that is in great condition. It's on land, but the land is not for sale. Do I need to contact the land owners to make sure the MH can be moved? I know that I would have to ask this if the MH were in a park, but not sure about land.

Are there any pitfalls in buying repos that I should watch out for?

What would be a competitive offer (percentage of repair value) that I should offer? Just a general guideline.

Any other advice would be awesome.

Thanks!!!