Building Idea #2
Tuesday, September 11th, 2007
I am tempted by this property. For a project, I see it as an improved lot. It has a well, a septic system, electric power, a paved driveway and best of all, beautiful natural landscaping. It is ready for a new home. A big bonus is that it is a place to live and work while the new house is being built.
Properties like this are like jewels waiting to be shined up. They are on the low end of property values but have all the expensive improvements in place which is a great saving of money, time and labor over starting with a vacant lot. If you work carefully, the new house you put there won’t disturb the landscaping. Saving that great maple grove would be a priority with me.
Of course you must abide by the first law of real estate…location, location, location. Find a mobile home in a neighborhood where you will be bringing the value of the property up to the value of the rest of the homes, maybe even turning it into the be$t one there.
Financing a mobile home on a private lot is like any real estate transaction except the price will be lower (if you shopped well) than a regular home. Your down payment and monthly installments would be smaller, leaving more of your investment money available for building materials and other expenses.
Moving into a mobile home and making it useful is easy. Set up ‘camp’ by using the existing kitchen and bathroom and turning the living room into sleeping quarters. Clear the bedroom out and use it for a workshop. If there are two bedrooms turn the second into a storage room. A small efficient living space keeps housework to a minimum. Living on site saves the expense of maintaining another home elsewhere and eliminates commuting. It lets you work more hours per day, more days per week. Your constant presence protects the project from mischief.
The mobile home itself has potential. If it is in good shape it has value and you can sell it privately or to a dealer when you are finished with it, recouping some of your investment. It is also possible to disassemble the thing and use the materials and equipment in the new project. Think about that. All the plumbing fixtures, range, refrigerator, cabinets, doors, paneling, lumber, insulation, windows and more are items you may not have to buy new. Once the mobile home is stripped down to the frame and wheels you can sell that for a good price to someone who builds cargo trailers.
You can search a long distance from your present location to find a suitable mobile home project. Some distant town or city may have better potential than your local area. Be thorough in your real estate assessment of the area you choose to d0 your project. Swoop in there, do the work, sell the finished house and plan the next one.
What if your project does not sell immediately? You have increased the value of the property and can refinance the mortgage. This will give you money to live on until it sells or the capital to start another venture while you rent out the first one. Once you are in the position of being a property owner you have many options.
