I read DOW. I tried to research the feasibility of doing LD in my area. I searched on redfin for sold MHs near my area. the cheapest MH is sold for $14000 two weeks ago. 800 sf. 2bd/1ba. the space rent $850. Comparable apts in the area rent for about $1200.
assume someone who is apt renter want to buy a MH. he is comfortable for $1200/mo. that leaves $350 for MH payment (taking out $850 space rent). then Assume I am able to buy a MH with $7000 in cash. sell $14000 taking notes. that seems too low for a $14K note having only $350 monthly payment.
I’ve been scratching my head to see how I could make this work. I searched in the archives for LDs in Northern California. some post saying more expensive areas, you can still make it work, just with both buy and sell numbers higher. others saying it just don’t work.
Maybe some expericed LD guys can share some thoughts.
I had a question like this here a couple of years ago. Space rent in Southern California is 650 to 900 per month and I wanted to know if anyone on the board was in Southern Cal and doing deals. But there were no responses. The space rents are crazy. If you can afford 850 a month is space rent then why not buy a house where that would be you mortgage payment?
If you took 10% down of $14,000 asking price, you would have $5600 left in the deal. Thus you need 16 X $350/ mo. payments to break even. This is not too bad. Unfortunately you need to have bought AND rehabbed that home for $7000 all-in. Is that possible? Yes. Is it easy to find those deals in N. CA? Probably not. But I’m in the mid-west so I don’t know.
P.S. IMO, the buyer needs to make 4 x housing costs. At $1200/mo. this requires a $4800/mo. gross income.
What I was thinking, and I’m not sure how feasible this is, but to find a cheap home in some other state, and transport it to NCAL. I’ve bought decent houses for under 2K in PA. No idea how expensive transporting homes that far of a distance would be, though.
it’s 1972, Casino (manufacturer). 2bd/1ba, 800sf.
On Redfin.com, if you search for “san leandro, CA”, for sold records. you can find sold mobile homes.
I don’t know how the cost of moving MH work. old MHs seem to sell for good money here. it’s interesting idea to explore moving MHs to here.