Mobile Home...Bidding War...1966...12 x 46...Renovated...2 Bedrooms...1 Bathroom


#1

On the Forum there have been multiple posts concerning:

  • “Mobile Homes = To Demolish Or To Renovate…That Is The Question”

When we first purchased our Turn-Around Mobile Home Park, we “Inherited” lots of “Older” Mobile Homes.

Unfortunately, some of these Mobile Homes had already been “Condemned” by the City.

Thus, we made the decision to demolish the “Condemned” Mobile Homes.

For the “Non-Condemned” Homes we started the process of renovating each Home.

Our desire was to “Sell” each of the Renovated POHs.

Initially, all we could find were Renters. Thankfully, we ended up with some great Renters.

Recently, one of our great Renters moved out of our smallest and oldest POH.

Thus, our goal was to sell our smallest and oldest POH:

  • Mobile Home
  • 12 x 46
  • 2 Bedrooms
  • 1 Bathroom
  • 2016 -Renovations =
  • New Metal Roof
  • New Underskirting
  • New Outside Stairs - 2 Sets
  • New Vinyl Flooring
  • New Carpet
  • New Bottom Kitchen Cabinets
  • New Kitchen Countertops
  • New Refrigerator
  • New Range
  • New Tub & Tub Surround
  • New Toilet
  • New Interior Paint
  • New Exterior Paint
  • New Light Fixtures
  • New Blinds
  • New Exterior Light
  • New Exterior Locks
  • 2019 - Renovations =
  • New Carpet = In 2 Bedrooms
  • New Blinds
  • New Floor Vents
  • New Exterior Light
  • New Exterior Locks

After the 2019 Renovations we selected to advertise the Mobile Home exclusively to our current Tenants with a $100 Referral Check to the Tenant who brought a successful Buyer.

To our amazement we ended up getting 4 Offers from 4 Different Individuals (over 3 days) to purchase this Mobile Home. In addition yesterday a 5th Offer also came in.

We sold the Mobile Home to the Highest Bid:

  • Sales Price = $8,900 Cash Or Best Offer
  • Highest Bid = $8,500 Cash

There is a point at which “Older” Mobile Homes still keep their valve as they provide “Shelter”.

For the past 2 Years we were renting this Mobile Home for $550 Per Month (which is actually on the lower side for Rent for this space & location).

IF we had selected to rent the Mobile Home out again, the Renter could have paid Rent at $550 for 15.5 Months and still have been just a Renter after that fact.

The New Buyer has paid $8,500 Cash Upfront (which is about 15.5 Months of Rent - $550 x 15.5 = $8,525) and now only has to pay Lot Rent & Utilities.

Thus, the moral of the story is that if you have “Older” Mobile Homes but High Demand, you might want to consider renovating some of those “Older” Mobile Homes.

We wish you the very best!


#2


#3

Nicely done! How much was spent on labor and materials for this renovation?


#4

Renovation Costs - For Mobile Home - 1966 - 12 x 46 - 2 Bedrooms - 1 Bathroom:

  • 2016 = $12,289
  • 2019 = $600
  • Total Renovation Costs = $12,889

#5

It usually boils down to your specific market. I have purchased 4 and renovated them in my community in the past 10 years and usually make a profit of 15-20K each. I purchase the worst dumps in the park and do a 100% reno inside and out.
I am working on likely my last one now and should probably double my investment.
There is money to be made and better to sell if the market is available.
My next challenge is bringing in 3 new homes but to do that I need to sell the one I am renovating first.


#6

Greg, could give a little more detail on your Reno process for the outside of the homes. Thanks, Sam


#7

Outside… New metal roof, new vinyl windows (large bay in the front), new front door with side light, new side door (sliding patio) deck, vinyl siding (2" rigid insulation under), metal skirting, Exterior lights, landscaping/grass. Eves trough replaced or installed as necessary.
All homes already have conventional peeked roofs and old MH front façade removed.
Most have100% exterior reno. Interior is gutted to the studs.
Complete reno cost about 30-40K for material. There is no profit if labour cost is required.


#8

This made me laugh. How true! If you don’t consider the cost of disposal (the alternative), it might look like a losing proposition.

In all seriousness, $40k to rebuild sounds about right. It’s about $40k to get a new one.


#9

$40K is a lot but in my market I can flip for 80 - 100K. Assuming I can buy for 10 - 30K and do all the renovation myself it’s not a bad side line as a Community owner. I have pushed the quality of my community to the max over the years through strict enforcement of community rules, capitol improvements and very selective tenant screening. It works for me but not in most communities.


#10

Nice! I notice there no vent hood or old school square vent for range cooker? or hidden somewhere? :wink: