Good plan for first RE deal ??

[David Marsceau]

Hi Everyone, I am going to have 30k to invest on a live in flip property but I was thinking rather than putting that money straight into purchasing the property, I could purchase a mobile home in a 55+ community with the cash outright. I would then get a renter in there for 700 a month rent. I have already sourced the mobile home and researched rental comps so I know it will rent for that. So now i would have an income producing property owned outright worth 30k. My question is can I now get a heloc on the mobile home at 90% LTV and pull 27k out to put down on the original live in flip property ?? Thanks !!

[Dmitri K.]

@David Marsceau , if it were me, i would look into buying a SFH or a Duplex rental leveraging your 30k as a downpayment. Mobile homes don't appreciate and are not RE asset. You will most likely not be able to cover the cost of mobile home depreciation + lot rent + repairs with that $700 a month income. 

I also doubt that someone will give a HELOC loan on a MH. 

In my mind - it's a headache not worth taking.