Thanks Jason Wollbrink, I've definitely thought about owner financing this property, and now that you mention it, it occurred to me that it's in a state with pretty favorable laws for the seller in owner-finance situations. I can sell it as a land contract with the deed held in escrow (not recorded), and cancel the contract very easily if the buyer defaults, so that might be the way to go in this case. While obviously disclosing that the currently uninhabitable house exists, I could just let the buyer figure out what they want to do with it, and let them do so at their cost. Just to put things in perspective, though, I learned from my seller that the house has never had indoor plumbing, and has been uninhabited for almost 25 years, so this one would certainly be an extreme "fixer-upper". 🙂
There's one other idea that's been running through my mind and I wonder if you guys or others have any experience with it (@jawollbrink Per O Loseth ). When looking through comparable sales in the area I noticed that someone sold an individual lot nearby that has a mobile home on it, but the mobile home is owned by someone else and was not part of the sale. The listing for the sold land parcel mentioned that the owners of the mobile home were paying a few hundred dollars in lot rent, and that they would like to stay on the property after the sale. Honestly, if I would have found that listing while it was still available, I might have bought it -- something like $9k purchase price for the lot, with $345 in lot rent coming in every month, if I recall correctly. Anyway, this got me thinking, it might be pretty cool to own sort of a one-pad mobile home park in perpetuity, rather than owner-finance the land to a buyer and lose the income stream in a few years. I wondered if anyone else has done anything like this, and if so, what are some advantages, disadvantages and things to consider?
The property I'm looking at possibly buying already has an old electrical service, which I'm sure might need a little work, but it's not like I'd have to pay to bring in power from a half mile away. There's a hand pump well, that I would assume for budgetary purposes couldn't be used for indoor plumbing for a mobile home (although, I'd definitely check that out before drilling a new well). My understanding is there is no existing septic system at all (must be an old outhouse somewhere on the property), so I assume I'd have to pay for that, and that doing so might represent the largest expense of the whole acquisition and prep of the property.