Posted by Robert_WV on November 27, 2006 at 09:09:00:
We are located in Parkersburg
Double Wide Value - Posted by Robert_WV
Posted by Robert_WV on November 26, 2006 at 17:23:31:
Do double wides appreciate just like real estate if they are on permanent foundation. I understand stick built, looking at buying a couple duplexes that are double wides and wanted to know your opinions of value and appreciation. Do banks look at them just like real estate stick built and do they appraise the same.
Thanks in advance
Re: Double Wide Value - Posted by Tony Colella
Posted by Tony Colella on November 27, 2006 at 07:19:00:
Yes and no.
If the doublewide is attached to the real estate and title “retired” so that it now trades via the deed, then we find that banks are willing to finance the property much like a stick built property.
This does not mean every bank in town will make such a loan. Like most REI, you want to start with small banks and go from there. Don’t worry about a few no’s and remember you only need one yes.
As for appreciation, we find that they appreciate much like stick built properties do however we pay much less for them. Again, this is REI so we must buy wholesale and because these are mobile homes properties the entire purchase price still remains far less than stick built.
We like these properties for rentals because they rent pretty close (in our area) to what small, stick built homes rent for but since we pay so much less we make a nice positive cash flow spread. Had it been the stick built we would likely have broken even or gone negative with cash flow.
I personally do not find that these properties flip well but we have been in a rapidly rising market where high end, stick built homes were selling like hot cakes. In many areas that has slowed. The mobile home with land investment vehicle performs best I believe as a property for those who can only afford it. The type of people who are quite happy to live in a nice doublewide on their own land. Ask anyone living in a mobile home park and they all tell you they want to have their own land some day so there is a market to flip to if you have a good credit screen in place and a lender you can take your buyer to who can finance them.
When interest rates are cheap, these people often buy stick builts (often ones they really cannot afford). As interest rates rise the reality of what they can afford rings true. That’s where the flipping may come in. Again, I just buy and hold for rental. Your market and experience certainly may vary.
Tony
Re: Double Wide Value - Posted by seldon
Posted by seldon on November 27, 2006 at 04:57:19:
where are you in WV?
Re: Double Wide Value - Posted by Robert_WV
Posted by Robert_WV on November 27, 2006 at 09:15:15:
Tony, thank you for your post and comments. We are looking at a group of 16 apts. and three duplexes. IT looks like the duplexes are double wide mobiles made into duplexes. His price is high on the duplexes and I think he is pushing they are new. Just wanted to see where I sit with negotiations.
Thanks again so much for your response and all you do on CRE.