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Double-Wide Flip Case Study — Hard Money to FHA Sale
By Jaken Finance Group · Principal, Jaken Finance Group
Double-wide flip case study — $112K acquisition, $38K rehab, $195K FHA sale in 7 months. Illinois collar-county manufactured home real property flip.
This double-wide flip case study walks through a real-property manufactured home flip funded with hard money — one Illinois example; Jaken Finance Group finances the same product nationwide at 8.99%–13.5% interest-only.
Program hub: mobile home fix and flip loans · Comp methodology: manufactured home ARV
Property profile
| Field | Detail |
|---|---|
| Location | McHenry County, IL exurban |
| Asset | 1998 double-wide on 0.4 acres |
| Title | Real property — permanent foundation |
| Condition at acquisition | Dated kitchen, failed HVAC, damaged skirting |
| Exit buyer | FHA owner-occupant |
Real-property title on owned land is non-negotiable for this product. Chattel-title homes on park lots follow different economics — see chattel vs real property.
Acquisition and financing
| Line | Amount |
|---|---|
| Purchase price | $112,000 |
| Rehab budget | $38,000 |
| Hard money | 88% LTC + full rehab holdback |
| Rate | 11% interest-only |
| Points / fees | ~$3,900 |
| Target hold | 7 months (sized at origination) |
Qualified sponsors nationwide see 8.99%–13.5% IO on the same structure — this file priced at 11% mid-band with experienced sponsor track record. Pre-close: three real-property comps within 8 miles supported $195K ARV — see ARV worksheet logic.
Rehab scope and draws
| Item | Cost | Draw milestone |
|---|---|---|
| HVAC replacement | $8,200 | Draw 1 |
| Kitchen + bath cosmetic | $14,500 | Draw 2 |
| Skirting + moisture repair | $6,800 | Draw 2 |
| Flooring + paint | $5,500 | Draw 3 |
| Engineer letter + listing prep | $3,000 | Final |
Permit-light market — no Standard Plan Review delay vs Chicago flip permits.
Draw milestone map
| Draw | Trigger | Amount |
|---|---|---|
| 1 | Close + HVAC contract | ~$45K |
| 2 | Kitchen rough-in inspection | ~$18K |
| 3 | Skirting + moisture cure | ~$12K |
| Final | Listing-ready photos | balance |
Align GC invoice dates with lender draw calendar — 7-month hold assumed two draws after close, not one lump sum. Delayed draws extend IO carry at 8.99%–13.5% without adding value.
Exit and P&L
| Line | Amount |
|---|---|
| Sale price | $195,000 |
| Hard money payoff | ~$150,000 principal + interest |
| Interest carry (7 mo @ 11%) | ~$9,800 |
| Points / fees | ~$3,900 |
| Selling costs (~8%) | ~$15,600 |
| Net profit (approx) | ~$35,000 |
ROI on cash in deal: ~40% annualized on ~$18K equity + carry — acceptable for exurban manufactured niche.
FHA appraisal vs ARV comp — this deal
| Method | Value | Notes |
|---|---|---|
| Sold comp median | $205,000 | Used at hard money origination |
| FHA appraised | $198,000 | Minor condition adjustments |
| Contract price | $195,000 | Buyer negotiation |
Appraisal below comp median is normal — underwrite hard money to 75% ARV on conservative comp, not highest sale.
What made it work
- Engineer letter on foundation before listing — FHA buyer pre-approved
- HUD data plate verified at acquisition — no surprise at appraisal
- Real-property comp set — not stick-built imports
- Draw schedule tied to HVAC and kitchen — lender and GC aligned
- 7-month hold modeled at 11% IO — not 4-month fantasy
What would have killed the deal
- Chattel title on park lot — wrong product
- 10-month hold without term extension — maturity pressure at 8.99%–13.5% IO
- ARV at $175K — 75% cap fails leverage math
- Missing HUD label — FHA buyer pool gone
Sensitivity analysis — hold period and rate
Same deal economics with variable hold and rate:
| Scenario | Hold | Rate | Interest carry | Net profit (approx) |
|---|---|---|---|---|
| Base | 7 mo | 11% | $9,800 | $35,000 |
| Delayed FHA | 10 mo | 11% | $14,000 | $30,800 |
| Rate reprice | 7 mo | 13% | $11,600 | $33,200 |
| Worst case | 10 mo | 13% | $16,600 | $28,200 |
Model 10-month hold at 13% (top of 8.99%–13.5% band) before bidding — if profit still clears $25K, proceed.
Replication checklist — other states
| Step | Illinois (this deal) | Any state |
|---|---|---|
| Real property title | McHenry recorder | County recorder |
| Foundation letter | IL engineer | HUD-compliant local engineer |
| Hard money rate | 11% IO | 8.99%–13.5% band |
| Comp radius | 8 miles rural | 5–15 miles per market |
| Exit | FHA | FHA / VA / conventional |
Guides: Indiana · North Carolina · Georgia
Lessons for sponsors
- Start comp research before LOI — manufactured comp radius is narrow
- Price for FHA-eligible condition — largest retail buyer pool
- Carry sensitivity — 7 vs 10 months at 8.99%–13.5% IO = ~$4K–$7K swing
- Collar/rural exurban inventory fits product — not urban Chicago two-flats
- Photo documentation for draws — HUD label, foundation, kitchen progress
Scale path — flip to portfolio
Reinvest $35K net into down payment on DSCR rental — permanent 5.75%–10.5% vs next flip at 8.99%–13.5% IO. Many manufactured sponsors alternate flip and hold on owned-land inventory.
State guide: manufactured home flip loans Illinois
Pre-acquisition diligence — what the sponsor verified
Before hard money application, the sponsor confirmed five items that manufactured flips fail without:
| Check | Result on this deal |
|---|---|
| Real property title | Deed + permanent foundation on tax record |
| HUD data plate | Photographed at walkthrough — labels intact |
| Three sold comps | Real-property MH within 8 miles — median $205K |
| Engineer feasibility | Preliminary call — no major foundation rework |
| FHA buyer pool | Condition achievable within $38K scope |
Skipping any item pushes leverage from 90% LTC to 65% LTC or kills FHA exit entirely. Comp methodology detail: manufactured home ARV.
LTC vs ARV — which cap bound this file
| Metric | Calculation | Cap | Funded? |
|---|---|---|---|
| 90% LTC | 90% × ($112K + $38K) = $135K | Purchase + rehab | Yes — $150K total cost |
| 75% ARV | 75% × $205K = $153,750 | ARV ceiling | Yes — not binding |
| 88% LTC approved | 88% × $150K = $132K + holdback | Lender max | Binding LTC |
When 75% ARV binds before LTC — common in over-improved rural markets — sponsors add equity or renegotiate purchase. This deal had headroom because comps supported $205K on a $150K all-in basis.
Marketing and buyer pool — why FHA exit
Manufactured homes on owned land sell to a narrower buyer pool than stick-built SFR. FHA, VA, and USDA buyers dominate exurban collar markets where this inventory lives — condition and foundation eligibility determine whether those buyers can close.
The sponsor priced rehab to pass FHA minimum property standards without over-improving beyond comp ceiling. Granite countertops and custom decks rarely return dollar-for-dollar on 1998 double-wide product — HVAC, moisture, kitchen function, and foundation documentation drive appraisal value.
Nationwide replication — sponsor profile
This Illinois file is one market example. Jaken Finance Group underwrites the same product in all 50 states when:
- Title is real property on owned land
- Three sold comps support ARV within lender radius rules
- Scope and draw schedule are documented at submission
- Exit is defined — FHA retail, conventional, or hold into 5.75%–10.5% DSCR
Rate band on qualified files: 8.99%–13.5% IO · LTC up to 90% · ARV cap 75% — whichever is more restrictive.
Timeline map — month by month
| Month | Milestone | Lender action |
|---|---|---|
| 0 | Close hard money | Draw 1 — HVAC |
| 1–2 | Kitchen rough-in | Draw 2 |
| 3–4 | Skirting, moisture cure | Draw 3 |
| 5 | Engineer letter ordered | Foundation cert |
| 6 | List FHA-ready | Marketing |
| 7 | Contract + FHA appraisal | Payoff |
Slippage from month 5 to month 10 adds ~$4,200 in IO at 11% on $150K outstanding — size term sheet for 10-month hold even when 7-month is the base case.
Related
MH flip hub · Pre-qualify · (833) 264-7776
Double-Wide Flip Case Study — Hard Money to FHA Sale — next step (2026)
Bridge 8.99%–13.5% IO works when sold comps, scope contingency, and resale timeline are in the file at LOI — not ARV alone.
Submit scenario · Pre-qualify · (833) 264-7776.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon receipt of appraisal payment and satisfaction of borrower conditions. Closing times may be delayed due to appraiser property access . All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.
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