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the seller lives in California
has a 3 bedroom 1.5 bath 1970 mobile home in zip code 85705
asking $0 to $5000
lot rent is $403
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Hi Jackie,
Thank you for the information on this mobile home deal. I went and looked at the singlewide as soon as the seller called me and it needs a lot of work but the seller just wanted to walk away and not have the mobile home park take it over so she is giving it to me. I also talked to the park managers and they require 30 day notice if we will move it (not sure yet if we will) and a $400/month “storage fee” to pay the lot rent for the next 30 day time period. I am meeting another buyer there tomorrow to see if I can wholesale it just to see if that is possible. There is a LOT of work needed: new roof, ceiling work, some interior walls, closets need to be remade, paint, new steps, plumbing tapped off in one bathroom, all kitchen appliances are missing, some missing windows, central heating and cooling is gutted, etc. But the pluses are its a 3 bed, 1/5 bath with 2 nice porch awnings and mostly new skirting. The park will allow me to carry a loan on it for a new buyer but only if they can pass the park’s application and background process. What would you do in this situation?Seller finance it to someone who can and will put the work into fixing it up. You have no money (nearly) in the deal, so anything you get back over time is pure profit.
Or, do the fix-up work and seller finance it.
This kinda sounds like a Lonnie Deal, so you should check into his “Deals on Wheels” book.
Hey Elizabeth
It sounds like a great opportunity. There are a lot of ways you can turn this old mobile home in to a profit but you also want to reduce your risks.
1) negotiate a reduced lot rent with the park manager until you get it filled up OR ask the seller to pay the rent for April…. it’s the least you can do to solve her problem. I have successfully negotiated a reduced lot rent when a mobile home is vacant.
2) to reduce risks, you could just get an option to buy the mobile home for $0 for 2 months – to give you time to find a buyer. This gets you off the hook for lot rent. Start advertising a fixer upper mobile home for sale for $3,500 with $500 down seller will finance for $300 a month. You should have buyers come out of the woodwork. Advertise on craigslist but also put a sign at the entry to the mobile home park.
The monthly payments on a mobile home combined with the lot rent needs to be not more than what a similar property would rent for locally. So $300 payment + $400 lot rent would be $700 a month total. Reasonable.
You could just buy the mobile home but then you’d be stuck with paying lot rent until you find a buyer. An option gives you control of the mobile home but reduces your risks of getting stuck with lot rent payments.
I would not fix up the mobile home. It takes too much cash and time. It’s better to sell as is, where is.
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