First Deal - Am I missing anything?

[Account Closed]

I'm in the process of closing on a propery in East Michigan. the property is as follows

- 1960 13X70 on it's on land

- Lot is 5,000 square feet

- It's on town water and sewer

- It currently rents out for $400/month

The asking price was $19,000 and I bargained it down to $13,000 to account for trailer, being a 1960 having no value.

I secured premise liablility insurance and I plan on having the property deeded under it's own LLC. The insurance is in my name, at least the quote is anyway. I'm not sure whether I need to have that refelct the LLC or not.

Other than the insurance/LLC question, I'm wondering if there are any other issues I should be looking to tie up.

Thanks in advance for any input,

D

[Brandon Krieg]

If anything, I would address some alternative exit strategies for the property other than 'rent it forever.'  Mobile homes don't have the same life expectancy as 'stick built' homes, and if you aren't familiar with them you could come across a tough issue in short order.  

So, if something goes wrong with the unit, what is your next strategy?  Purchase another trailer to put on the lot?  Sell the land?  It's a good idea to have those things in place, as it may affect your pricing strategy.  For instance, if the land itself is worth more than that, you may be in great shape.  But if not, it might be a tough sell if something goes wrong.

I would recommend talking to someone who works with MHs all the time, to find out what the common issues are with units built around that time.  Good luck!