Posted by Richard (TX) on February 03, 2003 at 11:31:06:
Where are you located? If in my area I might be interested.
God Bless and happy investing
Richard McCaslin
Bought DW with Lot, now what, re-hab or flip. - Posted by Jodyb
Posted by Jodyb on February 03, 2003 at 11:19:12:
Just purchased a DW and lot for 5K from the bank. Home is 1989 model 1344 sq ft, 3br/2bath. The home sits on a good concrete block foundation and is solid structurally.
The problem is extensive water damage due to the roof leaking. The ceiling tile is falling off and all the floors are buckled. The walls are solid, but some paneling would have to be replaced. Two entrance doors, kitchen cabinets and probably heating and air units would be needed. Generally the place is a mess.
At the minimum a new roof and decking. New ceiling and new decking for floor, plus floor covering. FMV when completed would be 45K to 50K in this area. Rent around 450.00 to 500.00 per month.
One small problem is I don’t have the funds necessary to restore this at the moment and am making an offer on another property. I am leaning towards trying to flip this to another investor, however I have never attempted to do this, but read about it on this website.
Also this is my first modular home so I am a bit leery of tackling this job. Any ideas or feedback wpould be most appreciated.
Joe, Ky.
Re: Bought DW with Lot, now what, re-hab or flip. - Posted by Phil Pelletier
Posted by Phil Pelletier on February 05, 2003 at 01:01:00:
Flip it and run, my man. To many deals to be had to be putzing around trying to get the big score. If you can flip it and make $2,000, take it. Remember, $2,000 now is better than $400/month after $10,000 additional invested. They yield on the $5,000 original investment after the quick flip is outrageous. After the additional $10,000 invested, the yield drops off a cliff at $400/ month. It will take you three years to break even! Dump it and buy a better home that needs less work. I just posted an idea that might interest you. It is titled “Idea to bounce off someone”. Read it and see how it may be possible to buy better homes and sell the pay stream forward and get your cash out now, as long as the house is in decent shape. Check it out.
Good luck
Phil