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Updated about 6 years ago,
Home and trailer on one lot...
Newbie here. Here is the deal:
SFH on a lot, with a trailer on the same lot. Asking price is 95K. Current rent $750 for the home, and $535 for the trailer. Both currently rented. The home is old, and needs some work, but has a lease for at least the next 10 months.. The trailer is old, but should last a while yet with good maintenance. Same tenants month to month for 3 years. The cash flow is very good. BUT - I am not sure that I could sell it and get my money out in 5-10-20 years. I suspect so, but I don't know for sure. Plus, both are old. Eventually need a new roof. Maybe a remodel, even. But there is NO DOUBT that it would cash flow. Yet, people say you make your money when you buy. I'm not sure I can get it for much less than 95K. My realtor thinks that with 15K investment, it'd be no problem to get the money out. Still, she values it about 85K, not 95K. It would probably be a cash deal, at least at first. Then a home equity loan if I can get one on a property with a trailer which is a nonconforming use according to zoning.
Any thoughts?