Ok, so I have been hard at work, reading, cold calling,
putting ads on craigslist to learn the supply and demand in
my area, etc. Today was my first time walking through a
couple mobile homes in my area and I think I MAY have
stumbled on a good opportunity after speaking with a park
owner and making friends.
I started off looking at a home in the park listed for 4200.
It is move in ready, and I think if I can get it for 2k I
will go ahead and do my first Lonnie on it. After the walk
through, I went and talked to the park manager who
conveniently told me she has 5 homes as give aways. She
also said no pad rent for three months. She directed me to
one of the houses which had no door on it, so I walked on
in. Actually, I take that back…I had to CLIMB in because
there was no porch or stairs. It was a mess! There was
trash everywhere, soft spots in the floor, no sink, and
pretty much not habitable. She said that is roughly what I
can expect from the other 4.
- What’s my risk of “buying” these? They are free, and no
pad rent for 3 months. I am assuming if I can’t rehab/sell
them within 3 months I will owe pad rent? Maybe I can
convince the park manager to let me work on them, but then
walk away if I can’t unload them for like 2k a piece?
- Who will do the work? I pretty much can’t do any
repairs myself. Should I ask around the park for someone
who does mobile home repairs to work at like 15 bucks an
hour part time for 2-3months?
- Where will I get materials? Obviously I do not want to
be putting thousands of dollars into materials, I just want
to make them habitable. Any suggestions? I will need
replacement windows, a sink, some doors, etc. Suggestions?
- Should I take one, or all of them? I have not even done
a Lonnie Deal yet, but this seems like a low risk
introduction since I am only on the hook for what I want to
spend on materials provided I can sell them within 3 months.
- Problem…the park manager she is not interested in
chasing down the title since the previous owners all split.
She has a bill of sale for them though. How will I sell
something that I TECHNICALLY never own? They would have to
request the title back from the DMV right? I can’t do that.
Does this make the deal a no go, unless one of them has a
- What’s my exit strategy or best plan in general? No
rehab, just clean up, and flip the bundle to a rehabber for
1k a pop? Clean and do minimal repairs and maybe try to
sell each for 2k and 300 bucks down? Full rehab and try to
sell them for 3-5k a piece?
Like I said, I am new to this, but have been reading for
weeks. What’s my best course of action from here? Provided
no one takes these tomorrow, I will head back on Monday to
give the PM my answer.