I purchased a lot in a limited growth community which is a mixed combination of weekenders/permenant residents. I also own a small place up there which we currently use as a weekend home. I need some thoughts on this.
I would like to create a home and flip the property but there is a minor problem which i hope I solved.
The waiting list for contractors to FINISH your home up there is 4 to 5 years which is obviously something I am not interested in as I need my money for other investments. I was considering putting a very nice 1500-2200 square foot manufactured home on a permenant foundation. Here is how my math looks.
Lot Price 71K (appraised at 76K which everyone feels is low)
manufactured home 100-130K
Construction (assembly), foundation, electrical, water. sewage. permits and more is right around 100K
Total investment: 271K to 301K
A residence built in mid 80’s up the street is on the market right now for around 350K
Anybody have any thoughts on how this looks and if it is a good basic plan? They said it could start to finish in 6 months.
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not sure where you are but some of your figures seem high
we get repos - 3-5 yrs old - depending on what the lot needs - well/septic excavation etc., where they are coming from & what part of the county we are locating them (some of the towns have crazy impact fees!) …
we pay
$19K - $25K for the house
$2K - $9K for transportation
$3-5K for tear down & set up
$2-12K for permits & impact fees utility meters
$12 - $17 well pump etc if needed
$4K -$12K septic ($12K is if alternative system is needed)
$1K-$2K to replace all windows
$2K - $3K to replace all flooring
$1K - $2K to tape & texture
$1K-$3K lot prep
I always figure another $5K in costs for unseen damages - water damage - roof replacement gutters etc
plus paint, appliances, lanscaping etc
we have found that the appraisers are more concerned with the sq ft than the year
within reason… 1-5 years $1500 sq ft will appraise higher than a $1100 sq ft new.
Also keep in mind if you are aiming at a retirement or vacation buyer, they may not want a great big house as it is more work. Are you in an area that weather allows folks to be outside a lot etc.
If you plan on doing more of these, you should look into becoming a dealer/developer and get your homes direct from the factory. Joining a buyers group (if avail.) will save you even more $$$.
Repos are the best. I’m trying to get one now for $16K on 1 ac. Needs about 10K cleanup- fix up. Should be able to get $55-$60K.
Not bad for a month!?
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very nice… actually that kind of net profit was our goal & we actually almost doubled it on the first 2. When we add on interest for 3-5 years to the ones we carry it gets even better
amazing how lazy people are
they all want to walk into a turn key situation - don’t want to fix up antything themselves - just means more $$$ in our pocket though.
I’m expecting the next one to ask me to fix them breakfast! ;D
