First deal - Posted by Matthew

Posted by Tim on January 12, 2010 at 13:01:06:

“won’t even factor in the extra gas”
…and that’s they problem. The prospective purchaser needs to factor it in when evaulating the property.

First deal - Posted by Matthew

Posted by Matthew on January 11, 2010 at 18:01:20:

I know these questions have been asked a million times
before, so sorry in advance for the redundancy. I just want
to make sure I am doing everything right.

I am about to buy a 1996 Fleetwood 16x80. The man was
originally asking 10500, but we ended up settling on 5800.
It is on private land. No homes around it. A very large
backyard with a paved driveway. I think it is a killer deal.

Anyways, does someone double check and make sure I am not
missing anything before I close? Here are the things I have
considered…

  1. Clear title
  2. Check with landlord to make sure everything is clear on
    lot rent
  3. Make sure all utilities have been paid
  4. Fill out a purchase agreement

Is there anything else I should add to my checklist? Are
there any taxes the current owner might not have paid? Is
there any sales tax or anythign I need to report?

I live in Tennessee.

Thanks for any advice in advance. I just want to make sure I
am not making a mistake.

Re: First deal - Posted by joe–ga

Posted by joe–ga on January 12, 2010 at 16:51:36:

If I read this correctly, you OWN the land under it also? you say in your post is is ON LAND… if so, you need to get a title check from an attorney.Make sure the land is free and clear or you KNOW who has the deed you are going to get when the property is closed out.If oyu bought land and home for $5800 thats a GOOD DEAL…Get that sucker cleaned up and owner finance it with $2500 down and monthly payments.You can find a financial calculator at the top of this page.

Re: First deal - Posted by Tim

Posted by Tim on January 12, 2010 at 07:42:39:

One other thing to consider is proximity to employment. In my area the people that rent mobile homes in the country live paycheck to paycheck & drive trucks or SUVs. The cost for the extra gallon(or 2) of gas it takes every day to drive to work is enough to put them over budget.

Re: First deal - Posted by JeffB (MI)

Posted by JeffB (MI) on January 12, 2010 at 07:20:14:

Matthew, it sounds like a nice home, and the price is OK. But the fact that you haven’t spoken with the landlord yet is a little concerning. I’ve never done a deal where one MH is on someone else’s private lot, so I can’t predict all the pitfalls. But certainly, I’d be having a conversation with him before you spend any more time talking to the seller.

Maybe he’d be willing to sell you the land, cheap? Owner financing? What about lot rent? How much is it, compared to other MH parks, and compared to average 2/3 bedroom apartment rent in your area? I would be very certain there is room for a nice sized MH payment (from your buyer) while keeping their total payment (including lot rent) beneath or at comparable apartment rent levels.

There may be more, but I haven’t had my coffee yet this morning!

Jeff

Re: First deal - Posted by Lin (NC)

Posted by Lin (NC) on January 12, 2010 at 15:16:52:

When gas prices were really high, I swore I was going to sell the properties even 5 miles out. It really was a BIG deal. I won’t buy rentals very far out at all until transportation costs become insignificant again, which isn’t likely. Great point!

Lin

Re: First deal - Posted by John T (WI)

Posted by John T (WI) on January 12, 2010 at 12:41:02:

If people are living paycheck to paycheck (and I don’t doubt the majority of those who live in your regular mobile home parks do), Its very likely they don’t have a real budget and won’t even factor in the extra gas unless the home really is out way out in the country.

As an aside, in that scenerio (out in the country), the landlord of the property better have some rules about storage and visual appearance on the property.

Re: First deal - Posted by Matthew

Posted by Matthew on January 12, 2010 at 10:06:28:

I left a voicemail with the landlord and I am waiting a call back before I close. The seller says lot rent is 250/month, but I want to verify that. 200-225 is the average lot rent for my area, and while 250 is not unheard of I am going to try to see if the landlord will come down at all.

I will ask about the land. Who knows what they will say.

Thanks for your help Jeff. Please let me know if you think of anything else.