I have the option to buy a 3/2 – 2011 single-wide mobile home in a nice park in good condition.
Seller owes $12k on the mortgage and is 2 months behind.
Monthly lot rent is $550 and monthly mortgage payment is $313.
I think the property is probably worth ~$60k.
My thoughts are to construct monthly payments to the seller to cover her payment (master lease?) and either rent or sell to a buyer and make arbitrage?
There might be better ways to do this, but I think there’s definitely an opportunity here…Also thought about trying to sell with owner financing since lending can be difficult for manufactured homes. The benefit to renting would be opportunity to increase rents – but the downside would be – maintenance.
I just don’t know that I can sell with owner finance and some how not pay off the lien on the mobile home since my understanding is that liens have to be paid off in order to transfer title.
I just want to warn you that many parks will not let you rent out homes in their parks, so check before you pursue that thought much farther. They only want owner-occupants. If your option is for not much more than the amount to pay off the mortgage and maybe a little moving money, then grab it and pay off the mortgage. If you don’t have the money right now, send me an email at email@example.com. Maybe I can help. You want to get the trailer fast, before they decide to try and sell it themselves if there is that much equity in the trailer. Once the deal has been made, you could try a highest down payment sale on the trailer and do pretty well. You will need to find out what apartment rents are in your area, because you don’t want the down payment and lot rent plus utilities, taxes and insurance to price you out of the market. Good Luck!