Opportunity to purchase property in established mobile home / rv park

[David Yandel]

I am currently renting a rv lot with full hookups (water, sewer and electrical) for $750 per month at an established rv and mobile home park. People in this park range from using the land for manufactured homes and or park model rvs and fully movable units. I see that the area does sell these properties frequently and over the years have been increasing in value. 3 years ago, these properties (fully deeded) were going for around $25k, and now are selling for around $60-90k. There is a property here that the owner is trying to unload quickly, and I have the opportunity to purchase for cash well below current market value. My goal is to own some land so we have somewhere to come back to (my wife and I currently are nomadic) and also potentially short term rentals while away (rent to other RVers who need a spot).

now my question: Would it be best to pay this for cash outright as 1 of our first investments? Or would it be best to get a mortgage on the property even though it’s not needed? The goal is to start accumulating property and land and diversifying our portfolio. 

[Jordan Moorhead]

If your goal is to start accumulating property then keeping cash for down payments would be best imo!

[Logan M.]

I agree with @Jordan Moorhead, cash is going to be very important as you scale. I would try first seller financing, then a bank loan, and then cash.

[David Yandel]

Quote from @Logan M.:

I agree with @Jordan Moorhead, cash is going to be very important as you scale. I would try first seller financing, then a bank loan, and then cash.

Thanks Logan and Jordan for your responses. 

[Rachel H.]

@David Yandel Regarding your question, it would depend on your immediate goals. Are you looking to cash flow now or wait it out (with less cash flow) using a loan or owner financing? 

Personally, I've seen it done both ways. Though usually, it depends on the investor and their individual goals. If you decide to get a loan or use owner financing, it's best to make sure you've got all the numbers figured out so there's room to make back the payments on the spread. 

Also, you'll have to figure in costs for fix up (if any) and vacancy costs until you get the unit rented out. 

Hope that helps! 

[Roger D Jones]

Quote from @David Yandel:

I am currently renting a rv lot with full hookups (water, sewer and electrical) for $750 per month at an established rv and mobile home park. People in this park range from using the land for manufactured homes and or park model rvs and fully movable units. I see that the area does sell these properties frequently and over the years have been increasing in value. 3 years ago, these properties (fully deeded) were going for around $25k, and now are selling for around $60-90k. There is a property here that the owner is trying to unload quickly, and I have the opportunity to purchase for cash well below current market value. My goal is to own some land so we have somewhere to come back to (my wife and I currently are nomadic) and also potentially short term rentals while away (rent to other RVers who need a spot).

now my question: Would it be best to pay this for cash outright as 1 of our first investments? Or would it be best to get a mortgage on the property even though it’s not needed? The goal is to start accumulating property and land and diversifying our portfolio. 

 I guess the key question is will you be using this property as a 'home base' throughout your nomadic travels and how long would you like to keep this property as a home base?  Not sure about Florida but it can be difficult and expensive to find landing spots for an RV extended periods of time.  Locking this piece of property down might pencil depending your long term plans.