5-plex w/ mobile homes - please help - Posted by Stacy (Houston, TX)

Posted by Dr. Craig Whisler CA on June 02, 2002 at 22:08:53:

…determine value. they are not relevant to much except the property taxes he is paying now (which will likely increase upon sale and reappraisal).

Stacy, do you have any source of financing for this deal?

The mobile home portion of this deal may be very difficult if not impossible to finance with good terms. Such deals for all cash, mobile homes, and a seller wanting to move out of the country should sell at a fairly substantial discount in my opinion.

The REAL important question was left unasked by you. It is: Is the seller highly motivated? If so I would offer $75k to 90K, after verifying the loan to value ratio of any hard money loans available to you in your area. You should be able to get 60%-70% LTV (loan to value) loans with hard money lenders. If you can buy it for a price that will allow you 100% hard money financing or better conventional financing I would seriously consider it, provided that it was nothing down and had a decent (20%) positive cash flow using the current gross scheduled rents. If not look for something with more user-friendly seller financing.

Also note that it is not appropriate to use the same gross rent multipliers to determine value with mobile homes as is proper for Single family homes alone, which I suspect may be the sellers disign at the present time.

Regards, doc

5-plex w/ mobile homes - please help - Posted by Stacy (Houston, TX)

Posted by Stacy (Houston, TX) on May 23, 2002 at 15:29:49:

Not sure if there’s a deal here or not, but would greatly appreciate some help from the pros.

Seller moving out of the country and looking to cash out. 3 mobile homes and 1 2-story house that’s been converted to 2 apartments. The mobile homes are older ('79 early '80s models?) All mobile homes are skirted, w/ decks, Certificate of Attachment (which Seller claims converts to real estate?). He says all mobile homes are in good repair, fairly new roofs, etc. Concrete pads, concrete sidewalks, covered paved assigned parking, w/ picket fence going all around the 5-plex. Fully leased with rentals bringing in $2600/month.

He wants to sell for $150,000. Not familiar with mobile homes at all. Is there a deal to be had here? How do you value the homes? When I looked up the address on appraisal roll, it’s only on the rolls at $52,000 - but only 1 home was listed.

Any help greatly appreciated.