Park owner friend has offered me a free mobile home. 14*70 2/1 from I think 1972. He just wants his lot turned around to producing income again. He had to go though some legal work, but he now owns this vacant mobile home. It needs a ton of work, but 3-5K later it could be rentable from around 500-550 a month. Or sell it on financing but I don’t think I would get over 5K for the house, so that sounds out. Lot rent which I would pay would be 290 a month. I’m thinking if I did do this I would negotiate free lot rent for a few months.
Tons of my time, and I am buying a house next week that needs a lot of work too. There is no question that will be worth my time.
How much are newer mobile homes renting for? I would think the 50/50 rule would apply to mobile homes too. What kind of newer mobile home could you buy or 3 - 5k. Are you responsible for maintenance or is that covered in the lot fee?
Buy it outright and then pull one of those “Lonnie deals” - get a few hundred down and then finanace it for say:
Amortization: 5 years
Percentage rate: 14%
This means that someone could own it in 5 years and pay about $450 a month…you would get about $3K profit, and 14% on your money with not a lot of risk.
Just a thought…
I’ve bought 10 year old mobile homes in great shape for 5K before. But they had to be moved. 2000 year models and later homes in this area go for between 15-20K.
I’ve tried a lonnie deal before in this park, but all I did was waste my time and money. Nobody wanted to buy it, but everyone wanted to rent. So I gave in and rented it, which happened almost the instant I changed my ad.