Double-Wide Flip Case Study — Hard Money to FHA Sale

This double-wide flip case study walks through a real-property manufactured home flip funded with hard money — one Illinois example; Jaken finances the same product nationwide.

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

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)

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.

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.

What made it work

1. Engineer letter on foundation before listing — FHA buyer pre-approved
2. HUD data plate verified at acquisition — no surprise at appraisal
3. Real-property comp set — not stick-built imports
4. Draw schedule tied to HVAC and kitchen — lender and GC aligned
5. 7-month hold modeled at 11% IO — not 4-month fantasy

What would have killed the deal

• Chattel title on park lot — wrong product (chattel vs real property)
• 10-month hold without term extension — maturity pressure
• ARV at $175K — 75% cap fails leverage math
• Missing HUD label — FHA buyer pool gone

Lessons for sponsors

1. Start comp research before LOI — manufactured comp radius is narrow
2. Price for FHA-eligible condition — largest retail buyer pool
3. Carry sensitivity — 7 vs 10 months at 11% IO = ~$4K swing
4. Collar/rural exurban inventory fits product — not urban Chicago two-flats

State guide: manufactured home flip loans Illinois

Draw milestone map (this deal)

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.

Related

• Flipping mobile homes with land
• Fix and flip calculator
• Hard money lenders Illinois

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