Lonnie Deals


#1

I just found a late 1970s 12x60 SW 1 bd/1 bath for under $1K that I am considering doing a “Lonnie Deal” with. As I have never done a “Lonnie Deal,” I was hoping to get some advice if I should proceed on this deal.

This home is in decent structural shape but needs the following (new paint outside, new carpet inside and a new sub floor (particle board) as there are several rotted spots by the windows. It also needs a new front door and framing as it is completely rotted and a new toilet in the bathroom. The water heater and appliances work but look like they are in bad shape.

I found a park willing to take it and I believe I could get ~$12K for it when sold based on the park owner who said he did a deal similar to this recently in his park for a similar age SW but smaller (12x45 I believe)

The seller told me I could have it fully furnished for $1K but I’m sure I could get it cheaper.

I would need to transport it ~ 30 miles at a cost of $3K tops and I’m guessing I would need to put in ~$2K of work to make is nicer for a total investment of $5K to $6K.

I’m not sure if I should proceed however due to the age of the unit and the fear that there could be more wrong with it that I can’t see or haven’t found yet.

Any advice? I know Lonnie says to look with your “mind” not your “eyes” but he also says buy one that is only 10-20 years old. Not sure if I should take the gamble in case the repairs are more extensive than I think.

I have several pictures if anyone is interested in looking at them to see what you think.


#2

Michael,

I would recommend finding a better deal to cut your teeth on. A 1 bedroom 12 wide that needs to be moved and completely renovated is a poor choice for your first deal (or any deal, for that matter). Can’t you find any 2 or 3 bedroom 14 wides that don’t need to be moved? You’ll find that a lot more buyers will be interested in that type of home. And you’ll save yourself a world of aggravation.

Instead of spending a ton of your time and energy to end up with $5k in the deal, why not just find a home that you can buy in place for the same amount of money? I’m sure you can find a home that you can buy for $5k cash and sell on a note for $12k. You’ll have a lot more fun when you put a deal together in a couple hours versus a couple weeks or even months.

I would pass on this one. Stick to Lonnie’s material.

Karl Kleiner