I have a house that is near me that is listed with realtor for 68,000, It was at 90,000. The house is brick and looks great on the outside but has a mobile home on one side that the floor is sinking and no crawl space to get under to jack it up. What would you guys with experience offer for this? Needs carpet and probably sheetrock and paint in mobile home part. Please help. I want it but at a real deal. How much or high or low would you guys go? :help :help
A mobile home attached to a house…hmmmm…it would have to be a really really good deal, and i’m talking about the part that actually is a house.
I would develop a repair list and price it out. Don’t leave out anything that you want to do to the house or need to do to make it right. Add that number to the $68,000 number and see if it is still a good deal.
ruready Unless you have a bunch of great deals right down the street, it sounds like you are just floating along in the stream of daily activities like Forrest Gump hoping to hit the jackpot. What I would do is develop a system for finding houses. You can’t run any business unless you have a way to acquire stock. If you are trying to buy fix up and sell or buy fix up and rent or any strategy that is going to get you to your goals (being rich) then you need to do more than see houses in your neighborhood that need some work.
I would develop a source of houses then pick through that source until one fits your investment requirements. You can get a source at the bank for REOs or find a broker in your area that handles REOs or get the HUD list or place an add. You have to something to drive distressed houses your way for you to evaluate.
This needs to be a system. You can’t accidentally end up rich. It has to be systematic.
This sounds like a dog with a whole host of potential weird issues. I would run far and fast from this one unless you can get it REALLY cheap. Like jawdropping cheap. If you don’t feel guilty making the offer you’re overpaying.
These house/modular/mobile combinations were common in Arizona where I used to work, and they were always pains. Their designs by necessity are always wierd, are subject to lots of electrical/roofing/plumbing issues and always sell for a deep discount to regular homes.
But, they can be great deals, especially if you are planning to do them as a rental or RTO.
First thing is look at comps. Second realize the comps are probably for normal houses and your subject property will be at a huge discount to them. If a house of it’s general age and size and amenities are selling for $90k in your area, this really might only be worth $60k.
Then realize the problems you are describing for the MH flooring will be a true pain to fix.
First, decide what you would do with it if you buy it. Even if you do a nice rehab, it will still be a house/mobile combination so an Ugly Betty when you are done.
Actually, I wouldn’t be thinking of keeping the status quo. I would look hard at seeing if it was possible to tear out the old mobile part and put in a new addition to replace and expand it. Then you really turn Ugly Betty into the Prom Queen. Trouble is, you have to have the chops to do it and get it at a good enough price to make it worthwhile.
Decide what a price would make it worthwhile economically for you to do it and still make a good profit. Then offer 20% less of THAT.
I live way out in the country and I am pricing these house within a mile for rentals to start. I would like to venture out to big towns but I want to check out locals first. The houses that I am bidding on are within a mile and I live in the sticks. Can’t even get DSL. :} I just want to find a good deal and make it work for my confidence. Thanks