I am abit overwhelmed by everything involved in buying a rehab project… in the real estate end of it as well as the financing end of it.
I have 3 houses I am looking at but I don’t think I’m ready to move forward with it yet, mainly cause I am closing on my house this week and secondly I’m not sure my credit is ready for another large loan.(although my scores are decent).
Thirdly because I don’t know enough about how it all works.
I have another option I wanted to get your opinions on.
I have been given an older mobile home, I am going to look at the inside of it today, but from what I saw on the outside it was still in pretty good shape.
So I would just need to get a cheap piece of land, get a well, septic, electric pole and have the MH moved, fix it up and rent it out. (Fixing it up should not be hard as I am into construction)
What are your thoughts and experience with something like this?
As far as exit strategy… Couldn’t I ditch the MH and build a house on the land in a few years?
This is out of my field, so wait for the experts.
But I think that a MH is NOT real estate. You own it like you do a car. If I am right then you are right. If I am wrong , I still think you are right. If the land has a house on it , you could knock it down and build a new one.
Bruce is right. A mobile home is NOT real estate. That is why it is so hard to find reasonable financing. Major banks will not touch them unless they are permanently affixed to the property. Cement foundation, wheels and axles removed, brick/cement block skirting,…
Where is this property located?
As far as exit strategy.. Couldn’t I ditch the MH and build a house on the land in a few years?
My friend ,be careful in finding land to erect this MH .First, Check zoning ( current and masterplan ) to see if this can be done ( whats your connection charges from the local utility company for the Electric ? What size Septic system will be required for the size MH( if it perks for Septic at all ) ( keep in mind your future development plan ) this will determined what size house you can permanently construct later.
If I understand you correctly ,you said you were “given” this MH . Can you add some new interior finishes and sell ? The proceeds may help in a down payment for one of those 3 other properties after going to closing on your own residence .
Whatever option you choose , just make SURE you do your Due Diligence prior to ANY settlement and that it will BENEFIT you !