Hello. Possibly found a first deal for a flip. it’s a DBL wide on basement foundation, sits on 2.5 acres with huge 2 car detached garage with lots of extra space.
I’ve contacted my realtor and should be looking inside the house tomorrow. i did drive by last night and looked in windows, checked outside foundation, etc. and i came up with some questions that the experts on here should be able to help me answer.
there are holes in some of the walls, these are the walls with the screened on fake wallpaper looking stuff. normal stuff you would find in a trailer. how hard is it to fix this type of wall? is the easiest way to do it to patch the hole and then just paint the wall?
there is a sign that says evidence of mold, blah blah. not really concerned about that until i get in there.
some questions i have are. how hard is it to re-sell a dbl wide in the current market (this is in north central Ohio). i’ve heard that buyers may not be able to get financing as easily on dbl wides, trailers, etc???
the property last sold for 135k in 2005 and is on the market for 90k. i think i could sell it easily for 110-120k. so based on that are my calculations of offering 77k minus any rehab, minus holding costs, minus any closing costs feesable?
also, this is a HUD owned home only owner occupants can bid on it right now. if i bought it to live in and flip for a year would that qualify in “huds eyes” as owner occupant? it opens to investor bidding on 8-18…
thanks,
billy
Financing might be an issue.
There is no reason you can’t speak to a couple of different loan officers BEFORE you buy to see if they will lend to your future buyer.
That patterned “wallpaper” wall board is impossible to repair. Patching and painting over it is the only option short of ripping it out and starting over.
That stuff is usually vinyl and paint does not stick well-- not so much your problem with a flip, but expect to paint more often if it is a rental.
It’s a lot easier to buy then sell. Many people are turned off by buying a mobile home unless it is cheap. That is the only reason to live in one right? Around here, 110K for a mobile home would never happen.
John
John_in_nc
you must not be in the asheville/waynesville area of NC then. to even find a house in that area under 150k you are looking at dbl wides at 120k. i used to live in east TN about 30 minutes to NC boarder and dbl wides there aren’t usually on a foundation. most are up on block foundation.
wouldn’t the land and huge garage be a plus in selling? i’m having the realtor find comps in the area, especially comps that are dbl wide or modular. i might just have to adjust purchase price to accomodate longer market or look for another deal.
i will talk to a couple of brokers i know and see what they say about financing dbl wides.
i figured the wallboard would be a problem for repairing. figured i would have to rip off the “strips” that cover the seams, sand, plaster, prime and paint. not the hardest thing to do, just time consuming. once i get a closer look i’ll be able to tell if its every room or not.
the reason why i think this would sell is because of the land and the garage. together they are worth at least 40-50k (auditor website has land valued at 40k itself) i may just reduce asking price, but i don’t think it could be purchased low enough to make a rental.