Posted by JHyre in Ohio on December 02, 2000 at 08:19:35:
Cost on pre-1985 homes before fix-up- average $1700, anywhere from $500 to $2200. Repair cost, typically @$1300 (I repair about 2/3 of homes I buy, zero cost on others, so weighted average is about $950), generally no rent on these in my current parks- I rarely buy these in other parks. Non-income taxes are usually @ $120/year on these older homes. These homes tend to sell @600 down on 3 to 5 year note (average, 50 months) at 14% interest w/ principal of @$8700. I have two rules of thumb with these homes- I want @65% after-tax return and I generally sell for ((investment minus down) times three).
Post 85 homes- generally 3BR’s only, @$3000/home, $2000 move, $2000 repair, no lot rent. Park gives me $1500 for each one I move in, $1500 down, $15,000 note over 6 years at 14%.
These numbers are averages…I sometimes do better, and sometimes do worse. For homes outside of my mian parks, I adjust price downwards for lot rent. My best deals are when I pay above purchase price on homes that are in good shape and hence avoid the repair costs altogether.
Electric checked- usually @ $50. Getting it fixed (I avoid MH’s that appear to have electrical problems) is always alot more- $300 to $500.
All other jobs- materials + $10/hour (used to pay more). $1500 generally gets:
cleaning, new subfloors, carpet and linoleum tile laid in the whole thing, roof sealed, total re-paint, all misc fixtures replaced (door handles, vents, etc.), ceiling spots kilzed and painted and pipes looked at and fixed.