I have an opportunity to buy 2 (14x70-SW's) 1980's vintage Mobile Homes that are in a MH park that is only 4 miles from where I live. This is a MH park where the land (lots) are sold with the MH. Also, both of the above 2 homes are side by side too which is also nice. The owner wants to sell both as a 'package deal'.

This deal came to me yesterday via the grapevine. I did not go looking for it,...it found me.

Here are the details. Back in year 2000, a man buys these 2 MH just so his adult deadbeat children would have a roof over their heads and not be homeless. After trashing the MH for 15 years, the adult children move out and go find another MH to trash. Both homes have been vacant for around 5-7 years. One MH is appears to be 'fixable' and the other one may be too far gone to fix. I may post some photos of them later on.

The man who bought these 2 MH's in yr. 2000, died in 2017 and bequeathed these 2 MH to his oldest son, who is mentally retarded. Sometime today, an estate attorney is going to call me and he is expecting me to make him an offer on these 2 MH's with land included.

I am not even sure I want to pursue this deal, even though it could be a goldmine opportunity. The fact these 2 MH's are inside a trashy redneck MH park bothers me a little,.. but should it?

I need a MH expert to advise me to either stay with this deal or run away as fast as I can.

I have 5...but they are all on private lots, none in parks. The redneck park aspect would give me pause.

The ones I have on lots are absolute goldmines. But they are also much higher maintenance than my SFHs. And I get more tenant turnover.

I'd say it depends: how cheap can you get them? Do you have the time (ongoing) and inclination to bite off this project?

Pros to MHs: very low tax rates. High cash output. Low tenant expectations

Gevans,

Good to talk to you again. Back in 2010, I bought my first and only MH with land that was located in a neighborhood of foundation built older houses. Paid $5K for that one which was a money pit. However, after 12K in repairs, that MH has turned out to be my biggest and best cash cow. Rents for $600.00/month with only window units.

Now, I have an opportunity to buy 2 trashed MH's in a 100% white trash MH park. I am now having 'flash-backs' to my last MH experience in 2010.

The reason my MH stay full with good people is their terrific large yards. The trashy park WOULD give me pause because who will live there except trashy people? You can fix them up all you want but if the neighbors are trashy it will scare away good people.

WMH,

At that age, in that condition, they are worth what the land under them is worth, and no more.

If the outer shell is sound, no rot, no leaks in the outer walls and the roof, they can be fixed. Don't do anything high end, just paint and flooring, and possibly appliances.

I had some that rented really well, but they were all in great neighborhoods with large fenced yards where I accept dogs and children who like a large fenced yard.

What is the HOA fee on those lots?

Hi Roy, Good to hear from you.

I saw that ad on Craigslist in your area. It said the homes were from the 80's. All the talk about joining them together is fantasy - way too much hassle.

From your description,both likely need major work. I've found repair costs to range from maybe 1000 up to 15000. At the higher level, it's usually easier to just get a repo from a dealer that's already in pretty good condition. There's always some available.

Get inside them and check everything. With your experience you know the numbers. Allow for overruns, but you know that.

I thought you were going to concentrate your rentals over by the colleges. Is this in the area?

If there's too much to bother repairing, get a scrapper to strip the tin and any useable parts and crush the rest and get a dumpster for it. First though, check with building and zoning to see if they have any rules on replacement. Here Any replacement must be less than 8 years old and a certain size. No older stuff allowed so prices are higher. Beware of leaving a dumpster overnight as neighbors will use it to dump all their stuff and you'll wind up paying to get rid of it.

Considering the deal is a probate type situation,I would think my offer would be as follows:

0 dollars for any trailer that needs over 3000 in repairs to make it rentable, considering the trailers are from the 80's. Up to 3000 for each trailer that just needs minor cosmetics. 50 percent of land value if utilities are all ok (sewer, water, electric and gas). Land value is lower with junk trailers on it that need to be removed. Still, you've got to decide if the trailer park is ok or not.

I agree that tenants tend to not look outside, but they will notice if the neighbors are fighting loudly, have loud cars, cause police action. Neighborhood does matter.

Have you checked with the local police to see what sort of police calls the park has?

Sisco,

I know you are a MH authority also, but your MH park is more upscale and newer than what I am looking at here. Am I correct? I would buy coffee and donuts IF there was a park manager. There are probably 80 MH's in this park and everyone owns the land under their trailer which means a park manager would have no authority over anyone here,..so there is no park management here.

Richard,

The better of the two trailers here needs around $10k in repairs just to make it rentable. The other trailer was used as a dog kennel only. Bowls of dog food and poop

in every room,..this is the one I have my doubts about fixing.

Just got off the phone with the probate/estate attorney. I offered $2,500 for each property. He will call his client, who is mentally challenged, and get back with me. I will probably be getting a counter-offer.

Roy, looking forward to seeing them.

Some recent article on cost to develop mobile home spaces I've seen puts the cost at about 17-18K per space. Sounds a bit high to me. Maybe If they are developing an entire park with streets, etc. But we know it's about 5k+ for a septic system, plus pad, driveway, electric, gas or propane and permits, fees and more, so at least 10K per pad. If you can buy pads under 10K each, you're already making money.In that case the trailers are just gravy.

I'd also consider getting them then just selling the trailers and renting the lots. I like that!!!

As to the dog kennel trailer, we've all cleaned up houses with dog and cat smell. Use enzyme neutralizer, kilz sealer 2 coats and paint it. If the wiring, heat and water systems are ok they're not that much to fix.

I was going to advise offering $2000 each, land included. You came in a little higher. Wow! I under-bid ROY! This is a day to mark on the calendar.

Even at $5000, if you can rent them "as is" for $300/month each, you get all your money back in 8.3 months. I don't see how you could lose.

3 photos have been uploaded.

Check out Pit Bull Palace. I was afraid to walk through in fear that I was going to fall through the weak plywood sub-floor. Forget the Kilz sealer here, the entire sub-floor will have to be replaced.

Sid,

Don't pop any champagne corks (or Coors tops) just yet,...negotiations have just begun. I will be getting a counter-offer before this day ends.

Yesterday, the mentally challenged owner showed me the 2 trailers and told me he wanted $5K for each one. I just smiled and said nothing. He then said, "I will have my lawyer call you and finalize this deal". Excuse me?? I did not realize we had a deal but I will look forward to speaking to your lawyer though.

Sid,

Don't pop any champagne corks (or Coors tops) just yet,...negotiations have just begun. I will be getting a counter-offer before this day ends.

Yesterday, the mentally challenged owner showed me the 2 trailers and told me he wanted $5K for each one. I just smiled and said nothing. He then said, "I will have my lawyer call you and finalize this deal". Excuse me?? I did not realize we had a deal but I will look forward to speaking to your lawyer though.

Yes Richard - you are correct.

Off Sutton Bridge Road, are 3 separate MH parks all butted against one another. Each park has a paved road that runs through it. The 1st MH park looks clean and decent, the 2nd park is Okay and the 3rd one is a real $hit hole. And guess which one these 2 trailers are in ,...Skid-Row park #3 on Horizon Place.

Yes, I still got your number and if my offer gets accepted, you will be the first to know about it.

Roy, no mobiles yet, but I think there's opportunity there. They seem like the perfect cash cows a debt-free REI would love! Low cost of entry, high return cash on cash.

Sid,

We have NIMBY here too and that is why these 3 MH parks are all bunched together down at the end of lonely city road.

I think you should look into MH's. However, you need to read the book "Mobile Home Wealth" by Zalman Velvel. After I read this book in 2009, I was in the mood to go shopping for my 1st MH. I have read the notorious Lonnie Scruggs "Deals On Wheels" book but his is not as detailed as Velvel's book.

In Al if you rent just a lot and the tenant moves there MH on you lot you cannot just evict them you must Do a thing called Ejectment Action .will cost thousands, Ask me how i know

RTR (whoever you are)

You need to attend a Mr. LL convention and meet people who know MH management a lot better than you do. You could have avoided your unpleasant MH experience from just knowing the right people and getting the proper education.

Where in AL are you located?

Ken,

Since this MH park is located within city limits, the city maintains the paved road and provides water and city sewer services. No wells or septic tanks here. A city garbage truck comes every Friday too.

The MH seller I am dealing with here has a total of 6 MH lots with junky trailers on them. 4 of these lots can't be sold due to either probate issues or have cloudy Deeds on them. Many older type MHs that have had multiple owners, usually have Title Chains that really FU'd UP. Some MH investors do not care about getting a Clear Title but I do!

Roy this has been comical post in many ways. I loved how you asked for MH advice and then scolded RTR for not knowing what he was talking about.

I feel late to this cause I have no MH's or MH parks. Most of my tenants COME FROM MH PARKS" but have steady work and long time on same job. There movin on up!!!

Seriously though you have a hard time renting out homes why would you venture into MH's and parks---- you'll be swimmin with the big sharks-- maybe even killer whales.

Myob,

I bought my first and only MH in 2010. It was a rehab nightmare but I got it done and now with 9 years of hindsight,..it was (and still is) a GREAT investment. One of the best I have ever done. Now, I am trying to figure out if I want to do it all over again with another one. This one is located in Park which adds a new twist to what I dealt with in 2010. This is a Mh park with no on-site management and everyone here has to fend for themselves.

"Seriously though you have a hard time renting out homes" -This statement is 100% not true. How did you come to this conclusion?

In all honesty, I know a lot about MHs but I do not know 1/2 of what my friend Richard knows about MHs. I am still in the MH learning phase which seems to never end.

Roy I didn't mean to offend you. I had read some of your posts from last year and thought you were having problems over there in AL.

Ken,

I guess that is how you and I are different. You will buy a property with dirty Title and I prefer clean Titles. I do understand where you are coming from though.

Myob,

You are another person who needs to attend a Mr. LL convention and sit down with me at a Round Table discussion. I would show you photos of all my rental properties, which are all CASH COWS (no mortgages). It is just that some of my cash cows are better than others and my only MH is produces the highest cash on cash returns. Crunch these MH numbers,..$600/month rent on a $15K cash investment. Where else in the world can you get those returns?

Roy you sound aggravated at me? I was just pointing out you didn't say what the ROI was on the MH and since it was so great I'm thinking that is MY new target market.

Roy you say it's great it's GREAT for me also.

Myob,

I am not aggravated, mad or pissed off at you. When I get mad or aggravated at someone, I usually start talking 'down to them' using condescending sentences like "Are you some type of an idiot? My 85 year old mother can move a paint roller faster than you. No wonder you only want to paid by the hour".

I would never use those phrases here,...only to some of people that I have hired and will not hire again.

My SFH's generally return between 20%-25% but the 'hassle factor' is much lower than MH's. MHs can be real hassle just because of the way they are built. You can't go to Lowes/HD and buy a new front door or window for a MH,...you have to find a MH dealer who sells spare parts for MH's,..especially the older MH like mine is. That means driving to the next county over.

There are other reasons not to buy a MH but I don't want to discuss them here on this forum. In a hotel bar at the convention yes, but not here.

RTR,

I googled AL Ejectment law and did some reading. This deals with a situation where your tenant has claimed an "equitable interest' in the property you rented to him.

If you had to get an ejectment, which is done in Circuit court (not District-where evictions are handled),..then your MH tenant claimed he had some type of 'equitable interest' in the property (MH lot?) you leased to him. You will have to give more details of your case for me to understand why your tenant claimed an 'equitable interest' which in turn forced you to file an 'Ejectment case' instead of a standard eviction.

Equitable interest is the MH not lot. you can't evict them from there MH you have to file ejectment for the mobile home and them.