Deal or No Deal: 3/2 Singlewide Mobile Home In a Park (Free Mobile Home)
Since I’ve received a lot of requests for more case studies, I thought I’d make up another post for “Deal or No Deal.”
This one is for an early 1980s, 14×76 singlewide mobile home in one of the parks I like to work in. This opportunity actually found me while I had taken a trip to visit the park.
So, I was cruising the park just checking out the latest activity when I spotted the park manager walking around. He noticed me, I waved back, and said “Hey, what’s going on?”
We chit chatted for awhile. And, we went for a walk around the park.
In any case, we talked about a lot of things. And, in conversation the park manager told me about a home the park had taken back. I learned this home had been vacant for months. And, the park just didn’t want to fix it up and deal with it. He told me to take a look at it. And, if I were interested – the park would give it to me for free (based on his recommendation).
(Note: This is the power of networking and really having a strong team).
Now, I know there are folks out there who have heard of free mobile homes. And, I’m here to tell you – the term “You get what you pay for” usually holds true in these type situations.
The first thing I asked the park manager was, “Be straight with me. How much work does this thing really need?”
And, with that the park manager just smiled at me and said “I’ll let you decide. Just take a look.”
Once I heard that, I knew this probably needed a lot of work (aka a junker). I just knew it. But, I decided to go check it out anyways. And, here’s what I found.
As soon as I pulled up to the home, I had a really bad feeling (through my “Does it Look Like a Deal” analysis).
Outside of home
Mold and flashing issues near top
Back of home with wood board covering up area of home (possible damage to paneling)
Hornet’s nest near water heater panel
(Note: This is one sign the home is older (i.e. 1980s) when the water heater panel is accessible from the outside of the home. In most newer homes, the water heater panel is accessible on the inside (usually near the utility room or in the master bedroom).
Inside of home
Living room area
Ceiling (water) damage
Bucket of water underneath ceiling damage
(Note: I ran into the bucket while looking up at the ceiling and almost tipped it over – it was filled to the brim with water!)
Inside bedroom closet ceiling damage and mold issues
Bathroom floorwork needed
Insulation in tub
After viewing the home, the park manager asked what I thought. I said, “Seriously, did you think I’d even want this with all the work it needs? Even if you paid me, I wouldn’t even want this!”
And, with that the park manager laughed. He told me he knew I wouldn’t take it. But, just wanted to get my reaction. And, told me “Yeah, we all know that things that are free and cheap are not all what they turn out to be. We’ll probably just sell it to an investor for a couple thousand dollars and they’ll think it’s a deal.” And that was that.
I hope you enjoyed reading this case study of “Deal or No Deal.” I hope it will help you to better understand the thought process when evaluating potential mobile home investments.
If you would like to share a story on a home you’ve recently passed on or pursued (aka “deal or no deal”), I’d definitely be interested in hearing about it!
p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!
6 Responses
Thanks for sharing.
His comment, "Yeah, we all know that things that are free and cheap are not all what they turn out to be. We'll probably just sell it to an investor for a couple thousand dollars and they'll think it's a deal." seems strange to me, especially if he could not give this unit away in the first place.
Great post! I really enjoy your blog. There are so many details that I don't even think about. Thank you for sharing your knowledge and experience.
Thanks Jerry, glad you enjoyed the post – thanks for stopping by!
Deal or no deal are my favorite post of yours. The pictures are great, but to make it even better, could you go through the breakdown you did. I’m assuming that you didn’t just eyeball it and go off an emotional reaction. What are the #’s that went through your head. Like what your estimates were for each problem and how much you estimated it could be sold for. Or was it something about the place that made it hard to resell even if you did get it looking good again? Sounds like you could have got some free time from rental fees to get it filled.
Thanks,
Joe
I am thinking of buying a mobile home in a park near Santa Rosa, California, and renting one room to a friend and using the other as a crash pad when I am in town but I am new to this. I have a few questions.
1. Is there somewhere where I can find out the rules of the parks? I know they all have different rules but is there a way to save time and find out the rules before I even take the time to look at them? I want to be able to have a cat and a roommate and be able to rent a room out if I need to. (Or the whole mobile if I wish.)
2. How do you know the fees for the park aren’t going to be cheap when you move in and then they raise the park fees? Is there some kind of mobile home ethics or rent control on the spaces?
3. I am 55. Should I only look at 55 plus parks or do you recommend all age parks?
4. How do you find out which parks you have to live in and which parks you can buy the mobile and use as a rental?
5. What about these parks that want to have a board ‘approve’ you before you buy? What is that about? How do they decide? Is it based on a credit score or income or…… ?
Thank you in advance,
All the best,
Tina
Thanks for the note, it’s nice to meet you!
Regarding the park rules, each park may be different. The best way is to stop in and visit the park manager. They will be able to answer all your questions about the park.
As for the fees of the park, the park manager can answer them. To get a gauge of their increases, try to find out what they started out years ago and compare them to how they are now. Typically, I find most parks increase at a steady rate. Yes, there may be rent control laws in your area. You can find this out by contacting your local housing authority.
On the types of parks, it really depends on your comfort level. I know folks who have had success in both arenas, 55+ parks as well as all age parks. It’s really a matter of preference and what demographic you feel most comfortable working with.
Again, the park manager can help with your question of finding out which parks are resident occupied only versus rental occupied.
As for the parks that use the board approval process, I am not familiar with those type parks. I’ve heard that used mostly with co-ops and/or condo type situations.
If you’re interested in this niche and would like to know more, you may want to check out my book. It covers a lot more ground.
Hope that helps, thanks for stopping by!
Comments are closed.