All Forum Posts by: John Arendsen

If it's currently in a MH park I'd see if the park owner/manager would let you rent it. I wouldn't even think about spending any money on a PRE HUD Mobile Home. You'll never get it back and I seriously doubt you'd find a park that would let you bring it in.

Another thing you should be concerned about are caustic and carcinogenic chemicals and asbestos. That era of MH's used formaldihyde in the flooding if it was particle board which most floors were in those days. 

Plus asbestos laden insulation and popcorn ceilings were an issue with many MH's. Some exterior walls were 2x3 stud construction and and 2x2 was not uncommon with many manufacturers for interior walls. 

The interior paneling was usually a  3/16 inch photo finished veneer very light weight and the exterior siding was aluminum which was also very lightweight. The roofs were usually a rolled metal roof. All these things were designed to keep the homes as lightweight as possible and to also produce them as cheaply as possible.

This genre of MH has long since worn out it's usefulness. As a dealer and a contractor I've often charged a customer to remove them in order to install a new one. We would give them to Mexican brokers who would take them to Mexico and replace them with card board shanties. Certainly a step up for poor Mexican families. Or ranchers would come and take them away and use them for migrant workers. 

Not trying to cast a lot of doom and gloom on what is intended to be a very kind and generous gift but I'd hate to see anyone let along a newbie investor get stuck with a bag of worms right from the get go. Good luck with whatever you decide to do.

You didn't indicate how old the home was. If it was built before June 15, 1976 it's considered a PRE HUD Mobile Home and many MHP's won't allow them in their communities because they're too old and only serve to further blight the park.

Additionally, moving a MH, especially a multi-section MH can be a very costly undertaking. All that stated I'm talking California speak right now not knowing what the zoning ordinances are in Indians which is where I'm assuming you'll be attempting to relocate it.

What's wrong with just leaving it there and trying to sell it? You could then take the proceeds from that transaction and apply it to another one. Not knowing what the net yield is you may have to partner with others for a deal or two the generate enough capital to go off on your own. But then that could be a win win as it will be a great learning experience for you.

We've got boatloads on info on this subject. Most lenders want a minimum of $100k for just about any 30 year conventional loan so you'd be right at the entry level. At least in California. But here's a little info you may find useful.

What are Foundation Repairs and Retrofits?

The terminology "foundation repairs" or "Retrofits" is generally used to describe "Proprietary Foundation Systems" for MANUFACTURED HOMES

However, If you're not dealing in MANUFACTURED HOME transactions there's no need for you to take the time to view the video. But if you do and especially if you are a Real Estate Professional, lender, title, escrow company, home inspector, appraiser but most importantly a homeowner or buyer you should set aside some time to watch the following video:

What is MANUFACTURED HOME FOUNDATION?

It is a pre-manufactured, and much "beefier" (Lower left photo) support system designed to provide additional vertical and horizontal resistance in wind, snow, and seismic zones for which the design criteria has been pre-approved and stamped by an engineer. The photo on the right is a STANDARD PIER JACK and does not provide nearly as much vertical resistance and almost no horizontal wind or seismic resistance.

Having been registered as an approved plan with the State, a proprietary system has already demonstrated through testing data that it meets or exceeds certain requirements.

When utilizing a Proprietary Standard Plan Approval (SPA), plan check fees at the building department can usually be avoided. However, a Proprietary System is not the only solution. An engineer can design a site-specific plan as long as it meets local codes and will be accepted by the building department.

Another important point for

Engineered Certification & Foundations For Manufactured Homes

Adding a retrofit doesn't mean the existing components are removed (above). In fact, the manufactured home's existing supports are still necessary for the load displacement, reduction of floor vibration and for leveling adjust-ability.

A retrofit is generally required to meet loan or insurance specifications for "permanent" attachment, wind resistance, snow loads or seismic resistance.

Cool @Avi Garg

So @Avi Garg, you saved a sales commission and paid a legal retainer? How'd that turn out?

You said it yourself  @Robin L. "The Real Estate Profession exist for a reason". That pretty much says it all. The very measly commission you actually end up negotiating with a RE Professional is but a mere pittance to the overall process of a RE transaction. 

I can tell you personally with 50 years of experience as a RE broker, General & Manufactured Home Contractor, Manufactured Home Dealer, Home Builder, Developer, Investor, Property Manager, Construction defect & Manufactured Home Expert Witness, Consultant and Troubleshooter. Use a trained and experienced PROFESSIONAL.

It's so much easier on the stress level and you will be so much more at peace. I learned decades ago as a General Contractor that you drop your tool belt but keep it in your truck and let your finger do the pointing. Delegate, delegate, delegate. 

You are the GENERAL CONTRACTOR of your home.

If it's a single home transaction most RE agent/brokers will want you to be pre-qualified for a loan based on your credit, employment and skin in the game. Once you get that nailed down the next step would be to get a very experienced in MH's in the area you're interested in investing in.

Or, if you partnered with someone who had the experience and the multitude of skill sets needed to profitably facilitate a comfortable transaction and ongoing rental investment. I've worked this way with folks since I got into the biz. It's a win win for both. 

Most importantly though no matter who or how you choose to acquire MH's make sure you're dealing with a local, licensed, bonded, insured professional during every faction the project. The Devils in the Details. If it can happen it will. Good luck.

Little clarification. So are you saying you're interested in MH Parks? Or just purchasing a home or two. Just a ltitle bit of difference.

Phew,..............That's a boatful. I don't know a thing about the Canadian market unfortunately. Not sure what you mean by "City park vs. Rural". 

It may seem like a no brainer as far as investment goes because it tends to be at the lower cost of the scale vs site built properties. But just because it's cheaper doesn't make it easier. In fact there are several nuances in Manufactured Housing at the retail/consumer end of the market and it varies from state to state and in your case Country to Country.

The Buzz Word you are looking for and I always mention when discussing the MH Industry, especially Mobile and Manufactured Home Park Communities rental niche. You need to be very careful buying particularly if you're not in your own market area. 

Unless your willing to relocate and live in the area you want to farm I'd stay away from ANY type real estate investing unless you can partner up with someone who has as equally vested interest as you. I think I said that right. LOL!! 

Hope that helps.

Hi @Account Closed. Depending on whether or not you plan to personally manage all phases of every PROJECT.  Be they a 'TRAILER' 'MOBILE' or 'Manufactured home' I would proceed with a lot of caution on out of state transactions where you don't know the lay of the land. 

Understanding Local, State and Federal Zoning and Building Regs and Industry Standards, Permitting, Licensing, Hiring out of state contractors, etc. can be the deal maker or breaker.  

You also need to determine if the demographics, population trends, etc. fit your criteria. You also need to know if the area you are farming is in the "PATH OF PROGRESS" et.al. That is crucial and could make or break your deal/s as well.

EXAMPLE: The price, socio economic and demographic difference MH's in and around the beach area along the North San Diego Coast vs MH's within just 5-20 miles inland from the coast i.e. the Oceanside, Vista, San Marcos, Escondido, etc. area is dramatic. 

Yet with hardly any rent control North San Diego County is still a very popular retirement destination and folks who have the means are moving into the area and paying the price. The coastal rentals average around $1000/mth and the inland area MHP's are averaging around $600/mth. 

Land will continue to increase in value over time and the redevelopment and new development are moving in a positive direction as well. There will be slow downs and value reductions and perhaps even vacancy issues in some areas which have to be factored into the equation as well.

I've been a general and Manufactured Home contractor for the past 30 years and adealer, developer, real estate broker, investor and property manager for over 20 years on the North San Diego Coast. Probably some of the most expensive MH deals are done within 5 parks in my own little beach town where I currently own several MH's and continue doing deals when they come up. 

But having worn just about every hat there is in the industry it's still a pretty challenging endeavor. Unless you're extremely experienced in MH's and intend to be hands on I'd be very careful. At the end of the day what I've found out is it's all pretty relative. 

Tenant/renters will seek their own comfort level for the most part. So the folks that buy on the higher tend to have the financial wherewithal to support it. Likewise if it's on the lower end of the scale then you will attract that demographic just out of mere general selection.

However, all this stated, if your intention is to make your working capital spread out over a number of homes/investments over a shorter period of time then buying a number of properties or not having to invest a lot in one or two MH's may be a better choice for your particular niche.

But if you're new to the F&F biz and have limited capital you're much better off partnering with someone in the area you want to invest in before jumping in with all fours on your own.