mobile home question:
Let me see if I get how this works...A Little background information first, I already work as a new construction sales specialist for a large building company (which also deals in manufactured housing) in Michigan...Most commonly, when someone wants a new home, we simply demolish the old one, and construct, or bring in a new one...
Let's say though that I can get my hands on 2 or 3 a year that are 15 years old or newer to meet area building code for free or next to nothing (most people don't care, and if you give them the option of giving it away for free, versus paying to have it destroyed and taken to a landfill, they will give it away)
I can buy a residential lot for $4,000 dollars, install well and septic for $6,000, foundatation for $4,000, another $3,000 to move the thing and reconnect all the lines.
Now I have $17,000 into something that sells (we also have a real estate company in house, so I have access to the MLS) for $25,000+ all day long?
What am I missing...what are the drawbacks, and if it is this easy, why isn't everyone doing this? 6k (after real estate expenses) on a 17k investment is the best thing I have seen in a while, return wise...Even if I had to pay 2k for the homes...
Everyone please pipe in you .02...I am curious as to how this works...
Well it looks good but there are a few flags that went up when I read through your post.
Unless you have a state or county that doesnt restrict you ... you cant just get any residential lot.... it will have to be zoned for mobile homes.....
It doesnt stop there, each county can be differeent as well, even if it is zoned for mobile home, the county restriction might be that you can bring in a home older than 10 yrs old.
If however, you can get the homes for free.... you might look into Old MH Parks that can and will allow Older homes to come in as they may be grandfathered in.
Then you can work a deal out with Park Managers to bring in homes and lease the lot from them with the right to assign it.
Then put the home in run some ads and do a rent to own on the home. Place the homes on a note with a nice down payment like 1000 to 2000 down.... for a good home.
Then a positive cash flow of 200 + a month off of each home.
Or get them and do what I would do with them if it were me.... you get them for free flip them for a few thousand easy.
Mark
Thanks for the response,
Simply selling them for a quick couple thousand dollars is a good idea, but you still have to have a venue to sell them at... The other problem with that is that I would be going into competition against the company that hauls our homes for us... They already do this on homes that they can get their hands on... This may piss them off, and an turn damage our good business standings with them...
As for the zoning, the county I am in requires all single wides to be less than 15 years old in order to be placed on a residential lot... Other sub-divisions have different, more strict rules... The Private Lake that I live at doesn't allow any new single wides to be placed on lots...
If you could expain the mobile home park situation a little better, I would greatly appreciate it... Is this a way to get around the 15 years age limit? How are things where you are located? Do you have an age limit? If you do, can you still put these older homes into the parks?
This would be ideal...no septic field to put in, no well to deal with, just drop it off, hook it up, skirt it, and sell it on a land contract to generate some cash flow...
If you could fill me in on how this would work, and your (along with anyone else out there) past experiences in doing deals like this, I would greatly appreciate it...
Thanks
The Dark Prince