Would you buy a property you likely won’t be able to resell later?

[Beth D.]

Newbie here.

We're looking at a property that has potential to be either a STR or LTR. It's been unable to sell because the original house was a single wide in the 70s that was then added on to.

This makes financing either difficult or very expensive for people (especially since it’s a low price point and mainly first time buyers).

We would be paying cash - so it’s not an issue for us. But even though we plan to hold the property the reality/risk of not being able to pull equity or sell easily later on without maybe a land contract is kind of concerning?

For the right price - would you still consider this situation?

Additional details: You would never know there was a single wide originally - the house is now 75% new/stickbuilt and all roof/siding is seamless between the OG trailer and “addition”. Even the inside is done well. There is also an acre lot and garage and the price point is well below any equivalent newer trailers or stick built homes of similar size in the area (probably 50% of their value).

[Bob P.]

Quote from @Beth D.:

Newbie here.

We're looking at a property that has potential to be either a STR or LTR. It's been unable to sell because the original house was a single wide in the 70s that was then added on to.

This makes financing either difficult or very expensive for people (especially since it’s a low price point and mainly first time buyers).

We would be paying cash - so it’s not an issue for us. But even though we plan to hold the property the reality/risk of not being able to pull equity or sell easily later on without maybe a land contract is kind of concerning?

For the right price - would you still consider this situation?

Additional details: You would never know there was a single wide originally - the house is now 75% new/stickbuilt and all roof/siding is seamless between the OG trailer and “addition”. Even the inside is done well. There is also an acre lot and garage and the price point is well below any equivalent newer trailers or stick built homes of similar size in the area (probably 50% of their value).

Many investors make good cash flow turning mobiled into rentals. 

[Tanner Lewis]

It really just limits your exit options and decreases your ability to leverage. If you are looking to do this deal, I suggest looking at seller financing and then having an exit strategy to sell to an all-cash buyer, but personally, I would look at other deals.