Older mobile home upgraded but leary to purchase (lease, insurance)

[mdc1022]

hello,
I am a senior (early 60s) and on a limited budget and want to live out the next 20 years (or however long I have) without worry of having huge bills. I managed to do ok and save enough so that IF I am careful, I should not have financial worries.
I currently live in a manufactured home on leased land & I am getting tired of the lot rent increases. Although as of now the rent is not too bad, but it goes up and up yearly,
I am considering moving into a co-op OR getting a new manufactured home on my own land. I want my mortgage or co-op payments with insurance to be under $400 a month, I have the resources to do that only IF I buy a older home with land in a co-op or find a piece of land cheap in a good area.
I found a well cared for 1983 home that has new windows, floors, appliances ,windows, a newer AC and the siding outside was redone so it resembles a newer model home. It has great curb appeal and looks new & modern.
I could get the home with the co-op for $140,000. Maybe a bit less as we try to present an offer. I can afford it BUT the fear is the age of the home, I would get it completely inspected. I know the plumbing if not already upgraded should be upgraded, the electrical needs to be checked & the vapor barrier under the home as well.
I wonder how much the home's insulation has degraded. It has an 11-year-old roof that I would replace because I am not comfortable with the shingle roof being able to last much longer.
I would want this to be the last move I would make IF Live in this home for 20 more years it will be 60 years old & I have no idea if a mobile home built in the 80s can last that long? Buying a new one and getting land would be a struggle financially because these new ones are over $150,000 then add your land & fees it becomes challenging.
I look forward to having a home that would allow me to live and pay well under $400 a month. It would relieve so much stress BUT is buying a home like this a nightmare? With my pension and social security I can save every month and live comfortable doing this, OR am I missing something?
Before I make the offer & pay for the home inspection, I was hopeful I can get some advice. Oh, last but not least, INSURANCE. I don't want to not be able to get insurance and then lose my home due to fire, hurricane or wind.
At this time I was quoted just over 2 grand a year for coverage that would give me $100,000 in total coverage that includes contents & the home its self. BUT what if that changes as the home gets even older, a hurricane comes AGAIN and I get dropped.

I want to make a sound decision I wish I could afford a new home BUT being over 300,000 it is out of reach and even with the down payments I would be stretching my money VERY THIN,
housing is ridiculously expensive.

[MortonR]

I think your biggest risk is insurance. Not so much the cost, but getting a policy on a nearly 50-year-old manufactured home.

I say that because of the huge differences between modern construction and that of the 1980s, especially as it relates to roofs and wind. I can easily imagine getting to a point where no one will touch the place as far as insurance, and then what do you do? If you have a mortgage you're going to have to have insurance, too.

Don't take this personally, but I think you would be nuts to do this with the expectation that you'll always be able to get insurance, and affordable insurance. Sure, there's always going to be Citizen's, but you're still going to pay big bucks if it gets to that point.

Under that scenario, you're either going "bare" or you're going to lose your home or burn through your retirement funds.

Sorry.

RM

[mdc1022]

That was my thinking as well.. I can tell you the insurance estimate I got was from Citizens because as of now NO ONE ELSE WILL INSURE IT. The 2 grand insurance is somewhat reasonable NOW because it would be a policy that would make me whole in the event of a total loss NOW... but what about 3 years from now?? that worries me.. Believe me, I am thinking hard before I do this. I also think the home is overpriced. The land share in the co-op is $35,000.00 so that means the house cost is $105 grand for a 41-year mobile home.
I initially offered a total of $85,000 and the agent said it's not worth writing the offer. To me that was more than fair, I was paying for the coop share and giving 50 grand for a 42-year-old mobile home. Is that way of thinking insulting ? I didn't think so.

[gypsychic]

Originally Posted by mdc1022

hello,
I am a senior (early 60s) and on a limited budget and want to live out the next 20 years (or however long I have) without worry of having huge bills. I managed to do ok and save enough so that IF I am careful, I should not have financial worries.
I currently live in a manufactured home on leased land & I am getting tired of the lot rent increases. Although as of now the rent is not too bad, but it goes up and up yearly,
I am considering moving into a co-op OR getting a new manufactured home on my own land. I want my mortgage or co-op payments with insurance to be under $400 a month, I have the resources to do that only IF I buy a older home with land in a co-op or find a piece of land cheap in a good area.
I found a well cared for 1983 home that has new windows, floors, appliances ,windows, a newer AC and the siding outside was redone so it resembles a newer model home. It has great curb appeal and looks new & modern.
I could get the home with the co-op for $140,000. Maybe a bit less as we try to present an offer. I can afford it BUT the fear is the age of the home, I would get it completely inspected. I know the plumbing if not already upgraded should be upgraded, the electrical needs to be checked & the vapor barrier under the home as well.
I wonder how much the home's insulation has degraded. It has an 11-year-old roof that I would replace because I am not comfortable with the shingle roof being able to last much longer.
I would want this to be the last move I would make IF Live in this home for 20 more years it will be 60 years old & I have no idea if a mobile home built in the 80s can last that long? Buying a new one and getting land would be a struggle financially because these new ones are over $150,000 then add your land & fees it becomes challenging.
I look forward to having a home that would allow me to live and pay well under $400 a month. It would relieve so much stress BUT is buying a home like this a nightmare? With my pension and social security I can save every month and live comfortable doing this, OR am I missing something?
Before I make the offer & pay for the home inspection, I was hopeful I can get some advice. Oh, last but not least, INSURANCE. I don't want to not be able to get insurance and then lose my home due to fire, hurricane or wind.
At this time I was quoted just over 2 grand a year for coverage that would give me $100,000 in total coverage that includes contents & the home its self. BUT what if that changes as the home gets even older, a hurricane comes AGAIN and I get dropped.

I want to make a sound decision I wish I could afford a new home BUT being over 300,000 it is out of reach and even with the down payments I would be stretching my money VERY THIN,
housing is ridiculously expensive.

I am going to make this short and sweet. I think it's a bad idea. The fact that you are uncomfortable and asking us what we think tells me all I need to know. This is a HUGE risk for someone in your position. I would go back and re-think what you want to do. Mobiles in Florida aren't really a good idea, anyway.

Good luck, hope I didn't sound too negative, but hate to see folks make big mistakes.

[MortonR]

Originally Posted by mdc1022

That was my thinking as well.. I can tell you the insurance estimate I got was from Citizens because as of now NO ONE ELSE WILL INSURE IT. The 2 grand insurance is somewhat reasonable NOW because it would be a policy that would make me whole in the event of a total loss NOW... but what about 3 years from now?? that worries me.. Believe me, I am thinking hard before I do this. I also think the home is overpriced. The land share in the co-op is $35,000.00 so that means the house cost is $105 grand for a 41-year mobile home.
I initially offered a total of $85,000 and the agent said it's not worth writing the offer. To me that was more than fair, I was paying for the coop share and giving 50 grand for a 42-year-old mobile home. Is that way of thinking insulting ? I didn't think so.

The agent may be right, but they're YOUR agent, so if you want them to write an $85k offer, they need to do it, or you need to find another agent.

RM

[Schuttzie]

From my understanding, all new policies they write will also need to have flood insurance regardless of where you are. We have Citizens and am considering just getting a liability only policy with someone else and forgoing flood insurance. We live in a Co-op and our share is 52,000 ish and maintenance fees under 175/mo.

[mdc1022]

Originally Posted by MortonR

The agent may be right, but they're YOUR agent, so if you want them to write an $85k offer, they need to do it, or you need to find another agent.

RM

I agree she would write it but she thinks they will flatly refuse. I think my offer of 85 grand is more than fair for a 41 year old mobile home.
That pays the 35000.00 land share and 50 grand for that old home! FYI it does have a few grand in furniture included.

[mdc1022]

Originally Posted by Schuttzie

From my understanding, all new policies they write will also need to have flood insurance regardless of where you are. We have Citizens and am considering just getting a liability only policy with someone else and forgoing flood insurance. We live in a Co-op and our share is 52,000 ish and maintenance fees under 175/mo.

If you do that, wouldn't you worry if your home is a total loss?? it would cost thousands to get another home... why would you do that? just curious?

[MortonR]

Originally Posted by mdc1022

I agree she would write it but she thinks they will flatly refuse. I think my offer of 85 grand is more than fair for a 41 year old mobile home.
That pays the 35000.00 land share and 50 grand for that old home! FYI it does have a few grand in furniture included.

Let's put it this way...

If you're seriously considering this home/property, make them a reasonable offer. Your agent should have no problem putting comps together and doing the research since they have the tools at their fingertips. Along those same lines, when you asked your agent to make an offer and they resisted, did they provide an alternative, as in another amount or type of offer they think might be more acceptable to the seller? If not, I would consider finding another agent.

Now, if you are more than happy to walk away from this property, then make the offer. What's the worst thing that could happen? Better yet, maybe the seller is motivated, and they come back with a counteroffer.

Now you know they're negotiable, and the fun begins.

All of that said, I still think this is a bad idea. Putting yourself in a precarious position relative to income and investments you're depending on for retirement income is a bad idea no matter how you look at it.

RM

[steiconi]

Has the house been moved since it was first installed? That can make getting insurance harder and more expensive.

What amperage is the electrical system? Ours was set up for only 65 amps, we had it upgraded to the most we could without replacing poles, 125 amps. That means we had to stick with the propane stove and heater instead of going all electric. 200+ amps would be better.

Get termite inspection, get it tented if needed.

Ours is from 1978; all new appliances. Five years, few issues.