We am trying to purchase a park and will need to fill 6-10 lots.
We can buy beat up 80’s homes for $2000 and bring them in and fix them up for a total estimate of $7000 or.
We can buy mid-late 90’s homes in fair condition for $6000 and bring them in and fix them up for @ $10,000.
I am not really interested in buying new because I want all the homes to be sold via rent to own in 2-3 years. The park is full of 80’s homes so I don’t think a few brand new ones would change the park atmosphere that much.
So do I go with 80’s homes at an estimated savings of $3K apiece or go with a nicer newer 90’s home?
How much of a difference is there in fixing up and reselling my 2 options?
If you can afford either then base your decision on the highest profit margin. I assume you are intending to make some profit right. Rent to own has always been a lucrative side business of parks up my way. Especially if the buyer ends up walking away.
I would forget about the age of the homes, and get as many 3/2’s as you can, then 2/2’s, and lastly 2/1’s. I’ve been putting in the window unit heat/AC combo’s to avoid the high cost of central systems, and they are working great.
$3,000 is not enough of a price spread to justify buying a 1980’s home over a 1990’s. I would definitely go with 1990s based on the facts you presented. They look better, will sell or rent better, and a future buyer or lender will look more favorably on them. Just like buying a newer car over an older car – the old car only makes more sense if it is a collectible classic, which I doubt your 1980’s mobile home is (unless Pam Anderson lived in it).
Please always look for other posts similar to yours that have already been answered. A good one to read on this topic is:
“Help me decide whether to fix or scrap my rougher homes”
As a general rule, we only buy 16-wides. In our market (and many others), residents turn their noses up at 14-wides. You can rehab a house, but you can not widen it. So buy the larger home (which almost certainly means you are buying at a 1990s or newer home).