am I horribly unimformed? - Posted by Theo (NYC)

Posted by Joe C. (AR) on March 02, 2004 at 16:53:29:

Site development costs can vary by location and land characteristics. Excavation, roads/driveways, power, water, maybe gas, home moving and set-up, skirting, porches/steps, home repairs all seemed to be lumped into your $30k misc. Even under the best of circumstances this seems low. Zoning issues are another obstacle. Make sure mobiles are allowed and the density you suggest (20 on 10 acres)is acceptable. Investigate every aspect before you commit. Even in my part of the country, where land is relatively cheap, your numbers don’t work. The concept will work if allowed, but the return will be somewhat less.
just my .02
Joe C.

am I horribly unimformed? - Posted by Theo (NYC)

Posted by Theo (NYC) on March 02, 2004 at 15:58:57:

OK, assuming I can get the correct zoning, how is this possible? Am I way off base in my estimates? This seems to be too good to be true! What’s the average cost of having a MH moved, say 50 miles?
TIA for any help!

10 ac@20K
20MH@3500 ea-70K
Septic/city hookup@1500 ea - 30K
Misc other expenses-30K
Total Costs: 150K
(mortgaged@10 years@10.5%=about 2K/month)

20 Lonnie Notes@15,000@10yrs/11.5% - 4K
20 Lot rents@250 ea - 5K

Net Income = $7,000.00!!!

Something must be wrong…help.

Re: am I horribly unimformed? - Posted by steve w

Posted by steve w on March 04, 2004 at 10:36:48:

im woundering the exact same thing keep posting what you find out thanks

Re: am I horribly unimformed? - Posted by Theo (NYC)

Posted by Theo (NYC) on March 03, 2004 at 09:35:45:

Thanks for the helpful posts!! It was a hypothetical situation, and I guess I’ll have more concrete answers as I start to look at some land, and the city issues that may arise. Just out of curiousity, what terms should I use when searching these “land/MH” deals on the archives?
TIA again.

There’s many a slip betwixt the cup and the lip - Posted by Dr. Craig Whisler

Posted by Dr. Craig Whisler on March 03, 2004 at 24:48:28:

I would add another zero to your misc expenses and make it $300k instead of $30k. I think that would be a lot closer to reality.

Check with Ray Alcorn before you commit to anything. He may advise you to ad even more.

Regards, doc

Re: Wondered the same thing (am I horribly…) - Posted by Neil (in MS)

Posted by Neil (in MS) on March 03, 2004 at 24:11:17:

I’ve been calculating something like that in my head.I think zoning where I am will be practically nonexistent, so the issue in my mind will be how many MH you can put in a small space and have adequate septic (which is pretty easy in this type of soil, btw). My lot rents would be lower out here in the country, but I think the rental demand is there. Anybody know of a resource for planning and estimating a new MHP instead of purchasing one?

Here’s one reason I ask: I saw a really rough MHP today for sale with 10 pretty ugly MH on totally unimproved land (I mean not even a decent road into it), maybe 2 acres, tops. I was told he rents trailers and lots for $250 total for an income of $2500 gross per month, asking $80k for it. My first thought is “can’t I do at least that well building myself with $80-100k?”. Personally, I wouldn’t want much to do with that slum as it is.

I figure I could build a much nicer place in my more convenient (better school and commute for work) area on cheap land ($5k/acre or so for decent land) and get better rents.

I haven’t even seriously tried to work it out, but the idea seems interesting. I’m sure you gurus can shoot holes all in my daydream!