Yesterday, I did a ‘save my deal’ visit. I used to do this with investors in stick built houses. Go in, use another set of eyes and see if I can help. We’ve done ‘escrow rescue’, too. Go in to escrow and save a deal that was crashing,or falling apart,during closing.
Anyway….
An ‘investor’ here in the Phoenix area bought “someone’s” RE program for $12k. (Won’t say who.) There are higher priced ones out there. $35k-50k.
He wanted to do mobiles because of all the reasons we’ve discussed.
Not knowing the market… He bought one for $3k and rehabbed it for $16k. Ok so far…
However, besides the market, what he didn’t know…. it was a 1973 which has aluminum wiring. He didn’t know about older than 1976 wiring, so used off the shelf plugs and switches. Not safe.
Did laminate floors, new kitchen, new bath, and new heat pump. Waaaay overspent. But the outside needs outside paint, skirting repaired and a new porch (it’s unsafe) and it’s a senior park.
The inside is great but when you first walk up it doesn’t show well.
Been in it 7 months at $550/mo Senior Park.
Told him how to stage it, to at least get out.
I’ve talked about doing many deals and not be a one-hit-wonder! $12k RE program, $3k buy, $16k fix up. Trying to sell it for $6900 just to get out. $31k total and $28k in the hole with rent! That’s if he can sell it this week before rent is due again.
Says he’ll never do another one. Wow! Too bad!
Fortunately you guys know better. Here are some pics with comments.
