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Discussion Starter · #1 ·
First thing first Great Site!

Ok, this is my problem. I'm selling my home to move into something smaller to save up money for the next 5-7 years to build our dream home and have it paid for. With the money we're making with the sale of our home (say 15,000) we want to buy a mobile home. The wife wants to buy used around 13,000; I want to buy one for around 1-2,000 and flip it for around 10-13,000. My way we'll know almost everything is new or newer and I don't have to worry about crap leaking or falling apart a year or two later as it might happen if we go her way. I'm fairly good around the tool box and I would hire out anything I can't do.

Does this sound stupid? Has anyone done this?
 

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I wouldn't spend anything on a mobile home. Put the money in escrow towards the new home, and rent or live with family for the time until you can get the house built. I have lived in manufactured homes, one was a double wide built in 1996, the other was a single 12x60 that was built around 1965. It cost more to keep the older one in good shape, compared to the newer one, but after five years, the newer one started to show its age.

Again, if I had my choice, I would not rent or purchase a manufactured home, unless it was specifically built with SIPS and was built for a foundation and as a real house.
 

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I agree with greg on staying away from a mobile. Depending where you live you can break the bank trying to heat them in winter or cool them in summer.Maybe think of a smaller house you could reno and sell. Be advised living in any home while you're renovating it can be a real pain.
 

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Make that 3.
A mobile home like you want is not built the same way as a house.

Renting is the way to go!
 

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Assuming you own your land.
In 1996 we bought a 10 year old 14x70 from a young couple with 3 children and had it moved onto our land. The young couple needed more room and had no experience remodeling. Our septic and utilities were already in place. We placed the mobile home where the existing septic would drain into. Carpet and walls looked like the typical trailer with too many kids. We paid $3500, spent $2400 on carpet, paint, fixtures and a few upgrades. Took two weeks to move in it. Sold it for $7000 one year later when our new 2250/1750 sq.ft. home was complete. That's 1 year I paid NO RENT.
Not one item was stolen from our land while we lived on site. I did my own contracting and with us living on the land I/we were able to put in way more hours not having to drive to/from a rental home. If I needed some rest my bed was minutes away. My wife and I wired the house, I prepared the footings, she hired two nearly blind older men she knew to paint help paint. With me having help to build 7 homes prior, I knew contractors and subbed the rest. Saved big money. Saved $22000 not having to hire a contractor. We live near a large university and the trailer sold fast.
That was 15 years ago and now we need a new roof. LOL
Before you buy a trailer you must know your areas market.
 

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I don't know the tax laws in the states, but in Canada the capital gain from selling your principal residence is usually non-taxable. In this case renting would be building someone else's equity.
 

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Trying to flip a mobile home to make $$, is kinda like trying to make gold from lead.

Either rent or stay where you are.
 

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Discussion Starter · #8 ·
reply

maybe I should explain further...

-I'm paying $1000 a month right now
-sell home at a possible $20,000 profit
-buy mobile home for cheap and flip ($12,000) or buy well used (same$) fix here and there later
-lot rent of a mobile home around $280 a month
-save the money we would normally use for a $1000 house payment and put into mutual fund and what not
-later move it to a chunk of land
-build dream home with money saved up

I know a mobile home is not the ideal thing to buy but with our situation it seems logical...maybe
 

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Discussion Starter · #9 ·
I'm not trying to make a profit with the flip. I just want to live comfortlly with out the thing nickel and dimeing me to death. We are planning on living there for 5-7 years with our 2 year old son
 

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Unless you get lucky and get one of the old Fema trailers, bringing a older Trailer up to modern standards (ACFIs (Now required this year as stated in 2011 NEC) on all circuits, Kitchen & Bath need GCFI's in those two & on outside outlets (ie heat tape outlet), newer wiring, plumbing, copper or Pex, it would cost you as much as you made off of selling the home. Personally, I would not do it, and just rent or stay with family until you get the home built.

You would actually loose money rehabbing a old trailer, or even buying a newer one, because they have very little value, and depreciate quicker than a car or truck.
 

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another vote for avoiding a mobile home...
 

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I'm with you man. I understand your situation completely and you wouldn't believe the similarities between you and I.

In Novemeber of 2006, I bought my first home, at the age of 21. I paid $132,500. No money down, 100% financing. I ended up paying $192 at closing I think. Fast forward to now. I'm married, have a kid that will be 2 in about two weeks and more house than I can afford. I could afford the house fine when it was just me there, but once I got married and started a family I just don't care for the payment anymore. My wife and I are tired of being broke, and we can't stand the fact of knowing that we will never pay our house off. I will be 50 years old (30 year note). Now, aside form the financial mistakes, the situation is probably similar to yours.

I want to build my own house so bad I can taste it. We will be putting our home up for sale at the end of this year, and hopefully we will break even. The housing market is down a little in most areas so you have to deal with that. I have been paying $975 a month for over four years now and my balance is only down to about $125K. Welcome to interest.

I'm in the process of building a small shop/garage behind my house to hopefully raise the value of the home. I'm trying to do everything really nice so that it actually does add value, not decrease it. When we sell later on this year, we will hopefully be able to mark the price up another $20k or so. That's the price effect garages and out buildings have on the other homes in our area.

If and when we sell, maybe there will be some money there in the sale because we have no other saved up, and aren't really able to save. But, we will finally be free from our biggest debt, and that will enable us to do something similar to what you are talking about. The first obstacle is buying some land. Around here, I'll be lucky to get 1 acre for $10k. I really want two, but I want it out in the middle of the country, or more less on the outskirts of town. If I do it this way, I won't have to worry about building codes and all the other paperwork that is needed to build a home. I also will not be living in another neighborhood with an HOA either, because I'm sick of having to go by their rules for everything. They keep the neighborhood nice but sometimes they are a little aggravating.

If I could find a small plot of land like that I could buy it. We might have enough to buy a trailer or some other means. Problem is, most land will not be set up, and we will have to have a septic tank put in and all that jazz. Maybe we will get lucky and find some land that is ready.

I thought about buying a small travel trailer and trying to live in that, but I imagine it would be harder than you might think. I know somebody who did just that while building his own house and with kids it is a nightmare acording to him.

There is just alot of money involved and alot of sacrifice. After sitting on that decision for a couple years now, I have begun to look at other options. The most feasible would probably be to buy a junk house or a house with some potential and completely redo it. It would take some time and some money, but as long as what you are starting with is structurally sound, it might work.

As far as the mobile home idea, I don't think I would buy one with the impression that I could sell it for profit or even what I had in it. If I bought one, I would just be happy to see someone come and take it when I'm finished with it.

I have lived in a trailer before, and matter of fact I was living in one when I bought my house. I was paying $130 a month on it, and that is it. + utilitues, that doesn;'t even hold a candle to what I put out now. If I could just have that trailer back I would go for it today, in order to accomplish my dream.

Stick with it.
 
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