Posted by John T (WI) on November 02, 2009 at 10:26:02:
In Reply to: mobile home deal posted by nik on November 01, 2009 at 17:56:24:
Being in southern CA certainly inflates the numbers for you. However, I seriously doubt you can do it for $1000 in repairs. I think it'll be considerably higher. Is AC a requirement in your area? can you get by with a window unit?
I'd be real sure that the furnace can be fixed for a reasonable price, and not replaced. furnace's are probably the most expensive item to replace in a mobile. Leveling is a time consuming job, and you need to know what you are doing.
Instead of looking at what homes are for sale in what price range in the park, what are the homes being SOLD for in this park? big difference!What is the type of resident in the park? middle class, 55+, "trailer trash", etc? The average park tends to be lower income people with poor credit ratings. Some are better.
If a park here in WI was charging $600 lot rent, that would be upper class for sure, or a very good 55+ park. A good rule of thumb is the better the class of park, the lower your interest rate, since better off people tend to be more educated in finances and less desperate to get a place.
I probably wouldn't hold a 30 year note, I'd probably sell it to a note holder, but it would need a very, very deep discount because of the length. I seriously doubt a 1974 will last 30 years, nor will your buyer stay in the home that long.What I'd do is get my repair estimate at least double, and make sure you have the cash on hand to pay lot rent while repairing and selling. Then have it for sale while you do the repairs with your price varying depending on your stage of repair. And finally, sell it for a LOT less than you estimate, 20 or 30K, on a note no more than 7-10 years, cause I think you will get this home back eventually. I'd rather get the quick profit on this one, then over a long haul note that probably will never see the end.
- Re: mobile home deal Celeste-fl 18:56:43 11/02/09 (0)
- Too easy to overspend fixin' John Merchantjj 18:48:11 11/02/09 (0)