10822 Alta Sierra Drive, Older Manufactured, listed for $229,000. No conventional financing for manufactured homes of this era.

Great location, smaller lot, but very convenient in terms of access to the highway. The challenge here is the age of the manufactured home. Installed in 1975, regardless of the condition, lenders do not like to provide financing on manufactured homes this old. Looking around with a careful eye for deferred maintenance, I notice first and foremost, the roof appears to be leaking, and it appears from the ground spotting I could do, that it is over 20 years old, and might even be the original roof! Siding is also an issue. Some dry rot is evident around the front of the home. The garage looks equally shabby. Overall, this home, even though it is clean, really just needs carpets and paint and a bit of updating, isn’t structurally worth making the repairs. The highest use, would be to remove the existing home and repurpose the foundation for a new modular. This is a very common practice with these older manufactured homes, and lenders are open to this kind of improvement. Then it just becomes a question of the valuation of the lot. The lot, even with the driveway, septic, and foundation, is not worth $229,000. The lot and improvements is probably not worth more than $100,000. That means you would paying a premium for over $100,000 for the privilege of tearing down the existing home! Now, maybe if you were going to live in it for five years, not spend any money on fixing it up, and then tear it down replace it, that might justify spending, say $200,000 for the home “AS IS” But you would really have to live in without spending any more money on it for a few years to recoup some of your investment costs in the structure. That’s why I looked at the condition, and seeing that it needs a new roof immediately, the idea of buying it and living it, is not appealing. OK, all for now.
Gordon

Author: gordon

Nevada County Resident since 1988. Painting and Decorating Contractor 1985-2003 Nevada County Realtor Since 2004 Member of the Nevada County Masters Club (top producing agent) Every Year Since 2004

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