Updated over 6 years ago on . Most recent reply
Why we purchased a mobile home
My wife and I had been thinking of getting in to real estate investing for a few years. But not until about 18 months ago did we start to really take it seriously. We read, we watched the market, completed tons of property analysis, etc.
The number one thing we didn’t want to do was to buy just to get in. We wanted to make sure our first property would be cost affective, cash flowing, turnkey, and have the ability to be upgraded. We didn’t want a fixer upper for our first house. We just had twins and adopted two girls. Too much going on to pour time into fixing. Anyway...
We put 30% down (required for mobile homes) and we purchased the house well below market value. On top of that we had a lease signed and ready a week before we closed.
House details: 3 bed, 1 bath (room for a half), living room, kitchen, dining area, detached garage with attached storage shed, .23 acres, and on a concrete foundation with a 2.5ft crawlspace.
Because we didn’t rush and didn’t accept the original offer we were able to get the house for a great price. This is the only double wide in an area of frame houses so we purchased the house for 40% of what traditional homes with similar comps were going for. But, it rented all the same! We are making over 300% in rent than what we pay in mortgage.
The appreciation won’t be great (if anything) but the cash flow is fantastic! Because mobile homes have a reputation for “issues”, our lease agreement has a clause that the renters will pay the first $250 in all repairs excluding the roof and water heater.
I might have to continue looking for these types of homes if they can provide similar numbers.