Modular Rehab

General Real Estate Investing
1

I have been looking at this modular home in Box Elder County, Utah. Origionaly how I pick up homes is w/ a HML then a quick refi, but no HML will carry a modular. Ive heard of rehab loans that will finance up to what the ARV comes out to be, but Im still not too familiar with how they work so Im pretty worried about the pitfalls that come with it.
Im also writing to see if there are any other “techniques” that I might be able to use in this situation that have worked well for others that do not include using my “own” money.

Resources are:
$22,000 in equity from previous refi
$4,000 in real money

Here is my deal:

Modular Home Box Elder County, UT
3 bed 2 bath 1200 sqft. .25 acre
Negotiated price =$70,000
ARV = $111000

I hope this is enough info for everyone.
Thanks
rmart81

2

How much for repairs and other soft costs?

I’ve never heard of a HML that doesn’t lend on modular homes. Once it’s put together, what’s the difference from a stick built?

3

Closing costs $2,100
Total repairs would be $7,500-$8,000, plus $1,000 for slop.

Ive only done one deal with my HMLs and they give me a great rate compared to some that Ive heard on this forum, so I was pretty upset when I found out they would not finance a modular. Some people believe the modulars in UT dont hold value as well as stick built but, for this size and acreage, it compares very well. This is why I would also like to find out more about rehab loans if anyone has dealt with them, as well as anything else you may have done or heard of that has worked very well as far as financing repairs.
Thanks
rmart81