Posted by Dave Fl. on July 22, 2003 at 12:16:04:
What is “Joe Kaisers best darn document”. I never that one before. Thanks Dave
Buying Cheap MH’s in Parks is this one good ? - Posted by Heather_Tx
Posted by Heather_Tx on July 21, 2003 at 23:06:41:
I’m dealing in SFH myself, but my father is trying to get into the MH aspect of investing. I found an ad yesterday and went to look at a 1985 MH in a very nice park (VERY clean and tidy) Asking price was 6.5K But they will take 6 (I would show up with 5K cold hard cash and see how that went before paying 6)
The owner put in all brand new carpets today, there is ceremic tile on the kitchen floors, and it’s a 3/2.
The only problem with this home was a leak in the bathtub (it cracked) and so one wall had mold on it. New tub and 1 full sheet of sheetrock should fix it.
After reading deals on wheels awhile back, This was what I proposed to my dad might be a good deal for him, instead of moving MH’s to the property next to him to rent out like he wanted.
Buy for 5K (6 if he must) and leave it in the park. Park rents are 235/month. Sell for 250-300/month for a certain term (5 years I suggested) and he would make his money back plus about 10K+ the interest.
Does this sound like the good way to go, and is this one that you would do? (Those doing it the Lonnie way) What paperwork would be needed ? The same as for a SFH or different ? And also if they stopped paying would you have to do a full blown foreclosure to get them out just like in a SFH? Sorry for so many questions but after adding up what he would make with only 7 homes with these same prices I couldn’t believe how good the yeild was. I might just have to add MH’s to my list of RE VERY soon! LOL
Thanks in Advance,
Heather_Tx
Re: Buying Cheap MH’s in Parks is this one good ? - Posted by Bert Beaulieu
Posted by Bert Beaulieu on July 28, 2003 at 10:59:26:
Careful Anne_ND. In NH MOHOs on rented lots ARE considered real estate. True for other states also, at least in the northeast.
Re: Buying Cheap MH’s in Parks is this one good ? - Posted by Anne_ND
Posted by Anne_ND on July 22, 2003 at 08:39:08:
Heather,
Coming to MHs with a SFH bachground is good because you will not believe how low repair costs are. But it’s also bad because you think that $6K on a 1985 MH is a steal.
Your Dad sure can make money on the house at the prices stated, but he could also have quite a few carrying costs (lot rent & utils). I found that if I could take as little as $750 down and $200/mo for however long, then I could move these older houses at higher prices (up to $11,500). However, my business model assumed I could sell for $1000 down and $300/month. The market had to teach me and I paid tuition in the form of lot rent.
But when I had an old beater to sell for $2500 at $500 down and $100/month, well I could sell those all day.
This seller may not be motivated, but your dad should point out to them that they have a 17 year old depreciating asset that has MOLD(!) and a cracked tub. Do not play down how tough it would be to fix this- it’s a disaster for the seller.
As far as selling forms, use Lonnie’s forms and take them to your local attorney to check out. Mobile homes on rental lots are not real estate, they are personal property, so the forms will be somewhat different.
Critical paperwork for buying (aside from the usual docs): Joe Kaiser’s Best Darn Document and Power of Attorney.
Critical paperwork for selling (aside from the usual docs): mold disclosure forms and a little form I made up which the buyers sign stating that I have provided them with 3 three working smoke detectors and one new fire extinguisher.
I also suggest re-reading Lonnie’s books, there’s a lot of good info in there that took me a few reads to find.
good luck,
Anne
Re: Buying Cheap MH’s in Parks is this one good ? - Posted by Dave Fl.
Posted by Dave Fl. on July 22, 2003 at 12:23:47:
Thanks in advance but nevermind, I found it on “google”. And I agree, its the “best darn document” on the planet. Dave