Deal or No Deal: 3/2 Singlewide Mobile Home In a Park (Free Mobile Home)

Since I've received a lot of requests for more case studies, I thought I'd make up another post for "Deal or No Deal."

This one is for an early 1980s, 14x76 singlewide mobile home in one of the parks I like to work in. This opportunity actually found me while I had taken a trip to visit the park.

So, I was cruising the park just checking out the latest activity when I spotted the park manager walking around. He noticed me, I waved back, and said "Hey, what's going on?"

We chit chatted for awhile. And, we went for a walk around the park.

In any case, we talked about a lot of things. And, in conversation the park manager told me about a home the park had taken back. I learned this home had been vacant for months. And, the park just didn't want to fix it up and deal with it. He told me to take a look at it. And, if I were interested - the park would give it to me for free (based on his recommendation).

(Note: This is the power of networking and really having a strong team).

Now, I know there are folks out there who have heard of free mobile homes. And, I'm here to tell you - the term "You get what you pay for" usually holds true in these type situations.

The first thing I asked the park manager was, "Be straight with me. How much work does this thing really need?"

And, with that the park manager just smiled at me and said "I'll let you decide. Just take a look."

Once I heard that, I knew this probably needed a lot of work (aka a junker). I just knew it. But, I decided to go check it out anyways. And, here's what I found.

As soon as I pulled up to the home, I had a really bad feeling (through my "Does it Look Like a Deal" analysis).

Outside of home





Mold and flashing issues near top





Back of home with wood board covering up area of home (possible damage to paneling)



Hornet's nest near water heater panel

(Note: This is one sign the home is older (i.e. 1980s) when the water heater panel is accessible from the outside of the home. In most newer homes, the water heater panel is accessible on the inside (usually near the utility room or in the master bedroom).





Inside of home

Living room area



Ceiling (water) damage



Bucket of water underneath ceiling damage

(Note: I ran into the bucket while looking up at the ceiling and almost tipped it over - it was filled to the brim with water!)



Inside bedroom closet ceiling damage and mold issues






Bathroom floorwork needed



Insulation in tub



After viewing the home, the park manager asked what I thought. I said, "Seriously, did you think I'd even want this with all the work it needs? Even if you paid me, I wouldn't even want this!"

And, with that the park manager laughed. He told me he knew I wouldn't take it. But, just wanted to get my reaction. And, told me "Yeah, we all know that things that are free and cheap are not all what they turn out to be. We'll probably just sell it to an investor for a couple thousand dollars and they'll think it's a deal." And that was that.

I hope you enjoyed reading this case study of "Deal or No Deal." I hope it will help you to better understand the thought process when evaluating potential mobile home investments.

If you would like to share a story on a home you've recently passed on or pursued (aka "deal or no deal"), I'd definitely be interested in hearing about it!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Deal or No Deal: 3 Mobile Home Lots With 2 Mobile Homes

Since I've received a lot of requests for more case studies, I thought I'd make up another post for "Deal or No Deal."

This one is for 3 mobile home lots with 2 mobile homes. I got the call from a family who was a friend of someone I had spoken to awhile back.

(Note: Usually, when I talk to people for some reason they remember me. Maybe it's my demeanor and my laid back way of doing things. I get a lot of compliments from folks who tell me that I'm different from most investors - I come in more of a consultant than anything else. I always try to come up with solutions for folks - it doesen't always have to be working with me).

In any case, this family had run into quite a bind with their personal situation. One of the family members had been going to the hospital lately and they needed money to pay medical bills. So, they called me asking if I'd be interested in their lots and mobile homes. So, I decided to go and check it out.

(Note: Right now, I am looking into mobile home lots. It will be a nice addition. I guess I am following in Lonnie's footsteps - he also transitioned into mobile home lots from doing "Lonnie" deals. The good thing about the lots is that it's still the same concept - it's still like being the bank. And, I don't have to deal with the management issues involved with owning a park).

Since I took the time to learn my market, I was a bit familiar with this area. In fact, this area was where I did a mobile home move awhile back.

When I first drove into the neighborhood, I wasn't quite sure of it. It looked a bit shady. Some homes were kept up, some were not. It was not uniform all across the board. And, there were some homes with some really broken down cars. Not a good sign. It was a mix.

Shot of 3 lots with 2 mobile homes



So, the story was this family bought the 3 lots about 8 years ago as an investment. They bought the lots as raw land - there was no infrastructure on it. And, nothing on it either.

They installed an electric pole, but there was no water. They placed 2 mobile homes on the lots about 5 years ago with just the electric hooked up to one of them. As for the water, it cost too much to get a water tap and septic - they did not have the funds to do this.

So, they rented out the mobile home with the electric hookup to one of their daughters. Since this family lived down the street, the daughter and her family would drive down the street to their home if they needed to use water facilities. (Kind of crazy!) Thing is, their daughter and her family moved out about 6 months ago as they no longer could live there. They were paying this family $200 per month for usage of the mobile home. But, that stopped when they moved out.

And, the second home was never lived in. It was never hooked up as this family did not have the funds to hook it up. And, it was used as storage by another daughter.

(Note: Typically, I do not buy homes that have been vacant for years. If it has not been lived in awhile, there can be many issues that come up. One of the questions I always ask when visiting vacant properties, is how long has it been vacant. If it's recent, it's ok. If not, I'm extra careful and take the steps to make sure I know what I'm getting myself into).

In any case, when I first saw the homes I knew it wasn't anything I wanted to pursue. Basically, they looked like fixer uppers - too much work involved for me.

Mobile home #1 - 2 bedroom, 1 bath (used as storage for years)



Side of home



Mobile home #2 - 3 bedroom, 2 bath (electric but no water hook up, lived in by daughter and her family)



But, I did suggest to them that I knew a fellow investor who may be interested in taking a look. I told them he buys fixer uppers and moves them to his land. I told them this guy was ready to go - he had the mover and everything.

This family appreciated my help. I called up my fellow investor right there on the spot. He took my call, I handed my phone to the family and they made arrangements for him to come and see the homes.

(Note: I have a few fellow investors I work with on a regular basis. If I pass on a deal, I typically call them up based on their criteria and what they are looking for. If they end up buying, I am rewarded for my efforts. So, it's not a complete waste of time. My goal is to find solutions for these folks. And, sometimes I may not be the best solution).

As for the lots, they asked me if I'd be interested in them. I told them I'd have to think about it. I wasn't quite sure of the neighborhood. And, the fact that there was no water tap and septic concerned me. I've heard of this costing between $10,000-$20,000 - I've looked into it before.

I told the family it's best to try to sell these homes first to get some immediate cash. At first, they were trying to sell the homes with the lots but kept getting folks interested in owner financing who they thought were a bit shady. I told them it's the homes here that attract those kind of people. If they were to fix up the homes, maybe they'd get a higher type of clientele willing to pay cash. But, that would take time and money - a route they did not want to take.

In any case, they thanked me. They told me if I'm interested in the lots, they'd be willing to owner finance them and sell to me at or below cost.

To me, that wasn't the issue. It was the neighborhood and putting in the proper infrastructure. Plus, I'd have to go find nice homes to place them on. I just wasn't sure if I wanted to spend all this time and effort on this one deal - was it worth it? Or, maybe I'd pass and spend my time on something ready to go. I'm still thinking about it.

I hope you enjoyed reading this case study of "Deal or No Deal." I hope it will help you to better understand the thought process when evaluating potential mobile home investments.

If you would like to share a story on a home you've recently passed on or pursued (aka "deal or no deal"), I'd definitely be interested in hearing about it!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Deal or No Deal: 2/2 Singlewide Mobile Home In a Park

Since I've received a lot of requests for more case studies, I thought I'd make up another post for "Deal or No Deal."

This one is an early 1980s, 14x76, singlewide mobile home in one of the parks (high end) I prefer working in. The sellers had called and found me through a friend living in the park - they said they've heard what I do and asked me to check this one out.

(Note: In the beginning, I had to do a lot of marketing and networking to get the word out on what I do. My style is to be as personable as possible - I don't try to act as a big whig. I guess I follow Lonnie's style of just being a small operation - it's worked for me. Again, everyone will have their own style of doing things).

When I received the call and heard the sellers' story on why they were moving, I had a bad feeling. Basically, they told me they needed to leave because they just couldn't live in the house anymore - there was too much work that needed to be done to fix up the home.

They had been living in it for 5 years. Though, they've had so many issues with it - the central a/c had just broken down and the water heater was going to need to be replaced soon. These were just a couple of things mentioned.

(Note: When I hear the words, "We can't live in this house anymore," it's a major red flag to me. I've had so many cases where I've had these types of calls - most of these types of calls always require the home needing a lot of work and to be fixed up a great deal).

Since the home was in a park (high end) that I prefer, I decided to go ahead and make a trip out to inspect the home. Here's what I found:

Outside of home

Mold and flashing issues near top

(Note: The gutters had not been cleaned out for a very long time. Also, the roof had not been re-sealed since the sellers bought the home 5 years ago. There are signs of water damage on the outside as well as the inside of the home).



Back of home



Side of home

More flashing issues and water damage to masonite hardboard siding



(Note: If you notice lines of water stains (as in the pic below) down the siding of the home, it's indication of flashing and water damage issues. For this home, it was apparent around the entire outside of the house).











From the outside alone, I knew there was going to be a lot of work needed to be done. Since there was a lot of water damage to the outside masonite hardboard siding (due to flashing, roofing and gutter issues), the outside alone would require a lot of work to replace the rotted and damaged areas especially since it was all around the entire home).

Inside of home

Living room



Kitchen





Hallway

(Note: There were some soft spots in the floor in the hallway - this had never been replaced by the sellers).



Bathroom floor

(Note: Some parts of the existing floor had collapsed. The sellers had started to remove remove and repair some of the areas. However, they did not finish as it required too much work and money).



Underneath bathroom sink

(Note: The baseboard had collapsed due to water damage - this was not repaired).


(Note: There were also signs of water damage in the bathroom above the shower. The picture did not turn out well, so I'm unable to include it here. Though, rings of water stains on the ceiling are usually indications of water damage and issues with the home).

Window a/c unit

(Central a/c had broken down - it was the original to the home).

(Note: While not always a deal killer, I've found it much more difficult to sell homes in high end parks that do not have central heat and air. In most cases, buyers who are looking in high end parks prefer homes with this feature).



After a thorough inspection of the home, I decided to pass on this deal. Why?

For me, it was too big of a risk for the time and money involved to fix up the home. It had a lot of factors going against it to meet my criteria. Not only did the outside of the home need a lot of work, but the inside as well.

(Note: When I asked the sellers the condition of the home when they bought it 5 years ago, they told me it was a major fixer upper. The previous owner had not taken good care of the home either. And, these sellers told me they had to make a decision (due to money issues) to either fix up the outside or the inside of the home - they could not do both. So, they decided to put their money into fixing up the inside of the home. But, they were unable to finish due to money issues).

Also, the fact that it was an older home and a 2/2 without working central heat and air would be a challenge with the type of clientele I tend to work with. In my experience, the types of clientele I tend to deal with prefer homes to be fixed up with central heat and air, as well as a preference for 3/2s.

So, I passed this lead onto a fellow investor who specializes in buying fixer upper type homes and specializing in 2 bedrooms and smaller homes .

Since this fellow investor bought mostly fixer upper type homes and worked with folks looking for smaller homes, I saw it as a better fit. Plus, it would be a better use of my time to pursue other deals that better fit my criteria.

(Note: Some investors think competition is a bad thing. I'm here to say, it's actually a good thing. Everyone has their own criteria on what makes a deal. A deal to me may not be a deal to you. And, vice versa. By knowing other investors in the business, you open yourself up to more opportunities).

Though this was not a deal for me, it was a possible deal for my fellow investor. And, everyone has their own criteria on what makes a deal. For me, this one just didn't fit mine.

(Note: After telling the sellers I had decided to pass on this one, I did refer them to my fellow investor - they appreciated that. Though, they told me they really had wanted to sell to me as they liked and trusted me. They even dropped the price down to $2700 (they started at $5500) but told me they'd be negotiable with me even on that price as they were already packing - they had already found another home in another park. I "thanked them" for their kind words, I told them the fellow investor I referred this to works these kinds of homes all the time and I thought it would be a better fit. The sellers thanked me and appreciated the referral. It's always good to be able to come up with solutions for folks. Not every lead will turn out to be a deal, but I always make it a point to help others and figure out solutions to their problems).

I hope you enjoyed reading this case study of "Deal or No Deal." I hope it will help you to better understand the thought process when evaluating potential mobile home investments.

If you would like to share a story on a home you've recently passed on or pursued (aka "deal or no deal"), I'd definitely be interested in hearing about it!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Deal or No Deal: 2/2 Singlewide Mobile Home On Land

Since I've received a lot of requests for more case studies, I thought I'd make up another post for "Deal or No Deal."

This one is an early 1990s, 14x60, singlewide mobile home. I found this one through an ad on craigslist.

(Note: I don't really use craigslist a lot. Most of the deals I find are a direct result of my network. Though, I do check it once in awhile to see what's out there. So far, I've only found one deal through craigslist).

Basically, the sellers (who were a husband and wife) had initially purchased this home for themselves and moved it to their land. However, when they got it to their land they did not account for the hookups which ended up costing too much money for them.

Though they were able to afford the move, putting in a septic and water system would have cost them $6800 and $3800 respectively. What had happened was that they thought they already had the infrastructure on their land. However, when they looked into it after the move they found out that it was not within their boundaries - the water system was on someone else's land.

(Note: These sellers had this land for many years - nothing was on it. They had bought the land years ago and planned to use it sometime down the road. Up to this point, it had been empty).

When I spoke to the sellers over the phone, they told me specifically that the home needed to be moved off their land. So, whoever ends up buying it needs a place to move it.

Being in the business, I already have a couple parks to work with for these types of situations. Though each park does have their specifications on what they allow and don't allow into their parks.

(Note: Some people have asked me about getting free lot rent from parks. Some parks will allow you free lot rent for a few months or even longer. Though, most of these parks tend to be more lower end type parks. It's really up to you and your comfort level on the types of parks you want to work in. For me, I'm more comfortable with high end parks (due to this experience) - that's just my personality).

The park I had in mind was more a high end park - hey had already agreed to work with me to fill in their vacant lots and help pay for the move. Though, they would have the authority to approve/disapprove what comes in.

So, I went ahead and made a trip out to inspect the home. Here are a couple of pics:

Outside of home







Rotted siding issues due to no flashing





Inside of home

Living room







Kitchen





Bedroom 1



Bedroom 2



Bathroom





Utility area



Hallway



Overall, the home was in fairly good condition - it looked very well kept. Since it was not hooked up, I could not test the water and the electricity - I had to rely on the sellers feedback and my "gut feeling."

(Note: For me, it's less of a risk if I can test out all the systems in the house to make sure they work (i.e. electricity, water, etc). If one and/or all of the systems cannot be tested, there's a possibility there may be some unknown issues that will come up in the future once everything has been hooked up. I found this out through one of my experiences moving a mobile home. I was able to test out the electricity but not the water (since it wasn't on) - I had a 50/50 chance that at least the electricity worked. Though, when the home arrived at the new site I faced some plumbing issues with the home - it cost a bit of time and money. Lesson learned: It's best to be able to test out all systems if you can).

After assessing the pros and cons, I decided to pass on this deal. Why?

For me, it was just too big of a risk. It had a couple of factors going against it for my own criteria. First, it was a 2/2. Usually, the buyers that I work with prefer a 3/2 and larger. So, I knew this would sit on the market longer. Second, I could not test out any of the systems in the home. For me, this was a big risk especially since it was on a piece of land and needed to be moved. Lastly, it had to be moved. The amount of time and money for a 2/2 for me that needed to be moved that I could not check the systems in the home to make sure they worked was just too much.

So, I passed this lead on to a fellow investor. This investor actually works the same park as I do. Though, specializes in 2 bedrooms and smaller homes which are usually moved from a piece of land into the park.

Since this fellow investor already worked with a market for those looking for 2/2 homes, I saw it as a better fit. Plus, it would be a better use of my time to pursue other deals that better fit my criteria.

(Note: Some investors think competition is a bad thing. I'm here to say, it's actually a good thing. Everyone has their own criteria on what makes a deal. A deal to me may not be a deal to you. And, vice versa. By knowing other investors in the business, you open yourself up to more opportunities).

Though this was not a deal for me, it was a possible deal for my fellow investor. And, everyone has their own criteria on what makes a deal. For me, this one just didn't fit mine.

I hope you enjoyed reading this case study of "Deal or No Deal. I hope it will help you to better understand the thought process when evaluating potential mobile home investments.

If you would like to share a story on a home you've recently passed on or pursued (aka "deal or no deal"), I'd definitely be interested in hearing about it!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!