Too Good to be True??? Seven Trailers and One House

[Aaron Thomas]

Whats up everyone! First post here on BP, but I've been lurking around the forums and listening to the podcast for a while now.

I'm still looking for my first deal, and I came across a property that I find VERY interesting. Almost too good to be true. So, I'm wondering if I'm missing something.

Property Facts:

Asking price $165,000 (Initial offer would be ~$130,000
1 House - 1600sqft - no rental history - in good shape but wallpaper everything

7 Single Wide trailers - 6 of them are currently being rented at $485/month

3 additional lots for single wide trailers 


I have no idea what the condition of the trailers is yet, working on getting a walk through of the property. Based on craigslist and zillow comps, the house should be able to rent for $800-$1000/month. Trailers in this area typically rent for $400-$600/month. 

So, when you run the numbers for full occupancy you get roughly:

 $800 + $485x5 + $450x2 = $4125/month

mortgage + expenses somewhere around $1500/month

This deal seems like a no brainer with current renters and rental history. Could easily add 3 more trailers on the open lots for another $1500/month for a total income of $5625 and only add another $400/month to the mortgage.

Am I missing something??? 

[Ryan Detig]

@Aaron Thomas  Well that seems really good.  If you are set up financially to make a move on this deal I would not try to low ball the offer to be greedy.  The numbers seem solid (note I don't currently invest in mobile homes just as a disclaimer) and I would hate to scare off a seller when the numbers look that good.   I would also make sure to not count on you doing anything.  Budget for maintenance, landscaping, Cap Ex, etc, and put your offer in based on that because you never know what might come up and you don't want to be locked in to having to mow a yard for 5 years because at year 1 you thought it was a good idea.