My First Mobile Home Deal

by Barbara Adams
Maine

After reading Lonnie's two books 3 times [Deals on Wheels and Making Money with Mobile Homes], I was really anxious to try my first "Lonnie Deal." I traveled around a couple of mobile home parks in May, and finally spotted a run down, overgrown 1968 12 X 56 Liberty mobile home in the third park.This is a nice park in a small town about 10 minutes from a good size city.

I found out from a neighbor that the park owner now owned the MH, and it hadn't been lived in for 5 years. So I looked him up. He said he wanted $2000 for it, and that there was $1383 in back taxes due, and I was welcome to look at it as it was unlocked. The ceilings and floors were good, it was on a nice lot, and had a pitched metal roof. I went back and told him I would give him $800, would pay the back taxes, (a total investment of $2186.53), and did not want to have to pay lot rent until August 1.He agreed in a heartbeat.

I hired a high school kid to paint the outside at $6.00 an hour, and to remove a falling-down shed. I had the toilet replaced; installed a new screen door; hired a plumber to replace some split pipes; and replaced the water heater. For curb appeal, I covered the tongue with layers of plastic scroll things that people run material through to make valances for windows. I wove artificial flowers through the scroll work.( I got the plastic scroll things at a yard sale 10 for $1.00). I also took a pair of them, painted them black and put them on the front window for shutters (a 20 cent investment and they look like wrought iron!)

I bought four 3 ft. sections of small white plastic fencing for $1.00 each at a dollar store and put them across the front.The repairs took only one week, and cost $914.48.

My total investment to this point including repairs was $3101. I put a 'for sale' sign on it, and put an ad in a free ad book we have here in Maine, plus two small ads in throw-aways. I knew I wanted at least $6900 for it. I instead sold it within ONE WEEK for $7950, $500 down, no interest. I am getting $206.94 a month for the next 36 months... a 69.5% yield!
[Editor's Note: Good news, Barbara, your yield is actually 88%.]

A young couple and a baby who live with her parents are thrilled with it. So simple I couldn't believe it!

The former tenants also had left two large sofas and an entertainment center, so I gave these to my son who is furnishing a large house.

Lonnie's info was invaluable and, as he told me on the news group, "Now on to the next one." (I have an appointment to see one this afternoon!)

I have also had 35 calls as a result of my ads! The owner financing creates a wonderful market out there! In Maine only a bill of sale is required to sell a mobile home, and there is no sales tax.. The new owner procured his own insurance policy with me as loss payee, and tomorrow I am going to the courthouse to record my lien. He also went to the park owner himself, and was approved. The park owner is receiving his lot rent a month earlier than expected, so everyone is happy..especially me!