I recently joined this site and it is awesome! Super insightful people on here.

So I wanted to get some perspective from the veterans on here on a deal I am considering(my first deal at that!).

3 acres land, with 2 mobile homes on the land. Land is 1/2 mile off interstate exit, with traditional homes around it on both sides. Land can only have 1 mobile, but it is grandfathered to be able to have 2 from here on out. Seller will not owner-finance, and he will not budge from $75K. He opened his checkbook and showed me his expenses for the year, and they come out to $4k. Seems like a no-brainer to me, but I am conditioned to be skeptical. This site is helping me try to get over that!

Specs on the homes are:

  1. 1979 Double-wide in excellent condition, 1700sq.ft. (renting for $650)

  2. 2005 Single also like new, 1100sq.ft. (renting for $500)

The current owner says those prices are a steal to the tenants, and after looking at the mobile home community 1.4 miles away, where lot rents are $350, I agree.

Please let me know what you all think and thanks in advance,


$4,000 expenses is less important as what the expenses were. Taxes, utilities, maintenance, trash, insurance, water, sewer? Does that include a capital improvement fund? Now is time for extensive due diligence, besides being necessary it’s good practice for you. Who says the homes can stay, the owner or have you read it yourself at the county offices? Can the homes be replaced? Are the sewer water systems compliant? in good shape? $650+$500=$1150-10%=$1035X12=$12420-$4000=$8420 Assuming you got 100% financing for arguments sake 75,000@7.5% for 15 yrs=$695x12=$8340 So your cash flow numbers even going by sellers expence/income numbers leave a positive cash flow of $6.67 a month! If nothing ever went wrong! Do you have a plan as how to investor finance 2 MH on one lot? Is it a good deal? Only you can decide that.

I’m not much help as I don’t know how to value the main component (the 3 acres in Dallas) these days. I do know that the old Dbl.wide has $0 value if you were to seperate it from the land. The '05 16x80 in like new condition should fetch $16k. It doesn’t sound like a money-maker to me.

Much like was mentioned, I would say you are dealing with a non-motivated seller (violation of rule #1).

Expenses seem suspect without breakdown and independent confirmation.

Grandfathering is typically the exact opposite from what you wrote and perhaps were told. Grandfathering may allow you to keep these 2 homes but if one is ever moved you typically CANNOT replace it. Only one home is allowed thereafter.

Some locations will only allow you to do a certain % of rehab on a home under this scenario before they say no, it has to go. Odd but true.

There is too much unknown at this time to determine if this is a deal or not but something to look into for the experience of nothing else.


Thanks for all the input guys! As for the grandfather clause that allows the 2 mobile homes, you are right. I can move/replace the doublewide, but once the single is moved, there can be no replacement.

The value of the land is def. more important, and a big factor in my decision. I have confirmed that 1 acre behind this property sold late in 08 for 41K, so my thought is that I can basically get the 2 mobile homes to pay for the land, and then later figure what to do with the land.

The 4K expenses includes all taxes, maintenance, insurance. Each mobile has its on septic, one traditional that was pumped last year, and 1 new septic system that had the pump motor replaced in 08. The roof is brand new on the 1979.


How can the two homes pay for the land if the singlewide burns down or attracts a tornado? You can’t replace it and your insurance on it won’t cover half the value of the land.


Kevin, I agree of course with the previous responses.

Also: a) Who would give you $15,000 for the two units in Texas? Nobody!

b) If you don’t know what to do with the land now, then why would you even consider buying it ???

c) You know, that sticking to established principles guides us to success.

Bernd wrote =

You know, that sticking to established principles guides us to success. Great advice. I always say financial success is like baking a cake. If you follow the successful recipe it will turn out well. If you change the recipe you never know what your result will be.

I know we may tend think that to be an entrepreneur we have to be original but we dont. What is more important is that we follow rules and guidelines with our money / investments that have been tried and proven. Originality is great but expect some lessons from failed results.

Just my 2 cents