Posted by Robin (AZ) on May 29, 2001 at 24:12:43:
Would you be willing to recommend a contractor/ contractors? As I said in my original post, anything cosmetic I can do-- but pipes and wires are beyond me! I’d appreciate any advice, thank you!
6+ MH needing rehab in Mesa - Posted by Robin (AZ)
Posted by Robin (AZ) on May 28, 2001 at 24:52:04:
I came across a park in Mesa yesterday, family park, few amenities, many vacancies and at least 6 older, single wide MHs that looked pretty beat up-- ranging from just abandoned to, frankly, gutted. There are a few empty lots as well. Looks like the park was double in size, and they’ve closed the back half. The remainder has potential, but I talked to some residents and they said that the owners wanted to rehab all of the empty MHs, but hadn’t made much progress.
I thought I might go by Tuesday, and see what they had in mind. I’m new at this, but my partner has rehabbed a bunch of SFH and we thought we’d try to buy a few and fix them up. I just don’t know what to look for in the way of “major” repairs. I can fix anything cosmetic myself, I have the tools, etc. But pipes and wires are beyond me, and my partner is out of town for a little while. Any suggestions on what I might look for? Questions I should ask?
Ideally, they would just give me the MHs so I can turn them into performing assets-- but what are the chances? Has anyone done anything like this? I don’t know what would be a reasonable price to expect to pay.
Thanks! This sight is such a help for newbies!!
Robin
Re: 6+ MH needing rehab in Mesa - Posted by Bob P.(AZ)
Posted by Bob P.(AZ) on May 28, 2001 at 23:08:37:
Bought a 1984 14 by 60 2/1 in a Tempe park 3 months ago for $1,000. It was gutted; cabinets, sinks,swamp cooler,hot water heater were all taken by the previous owner. Two months of lot rent and $5,000 of renovation(including a new roof)later, the mobile was sold for $14,000 with $1,000 down and $250 month payments at 14% for 80 months. The work was all contracted out. With the lot rent at $350 a month for the two months, after all repairs, my ROI is 52.55% before taxes.
I usually won’t touch a deal unless I get 70% or better but this was my first major rehab so paid extra on some stuff and as a result have a lower profit.
One of the things you might try is to negotiate with the Park to get two to three months of lot rent free while you fix the place up. It would benefit the park by having a nicer home there and help with your bottom line. I am going to start two remodels next week and the parks have agreed to waive the space rent for three months(same principle as moving a nice used Mobile into the park). I expect the renovations with these two to only take one month and $1,500 in repairs each. So, I"ll have the friendly people that buy it from me pay me the lot rent for two months!
Good luck and welcome to Mobile Home investing in the Valley of the Sun.
Re: 6+ MH needing rehab in Mesa - Posted by Chuck (AZ)
Posted by Chuck (AZ) on May 28, 2001 at 20:10:08:
You can fix the homes. Can you “fix the park”?
The answer determines your course of action.
Re: 6+ MH needing rehab in Mesa - Posted by Don (Az)
Posted by Don (Az) on May 28, 2001 at 13:42:37:
Hello Robin,
Wanted to say hello to a neighbor I live in Chandler. A real Newbie since I’ve not done my first deal yet, bought Carlton Sheet’s program afew years ago when I was going through a divorce and now that I can get involved I am hesitant. Having alot of “pipe and wire” experience I may be of assistance to you and your partner with some ideas, etc. Sounds like you’ve found an interesting project.
Regards,
Don