Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 1 year ago,

User Stats

117
Posts
124
Votes
Sendhil Krishnan
  • Investor
  • Orange County, CA
124
Votes |
117
Posts

SD-IRA Cash - buy SFH or mobile home?

Sendhil Krishnan
  • Investor
  • Orange County, CA
Posted

I have a SD-IRA and looking to deploy $180k into a real estate play. I plan to start withdrawing in next 20 years. i likely will not be getting financing as it would be a nonrecourse loan at roughly 9% and 30-40% down. I am more interested in high cash flow within this ira so I can reinvest any profits into some syndications. two scenarios as follows, but can't decide and would love your opinions:

1. I found a "turnkey" mobile home provider that owns the park, and will sell a brand new manufactured double wide home to me for $100k. They will find a tenant that wants to purchase and will create a note. Essentially, I would be buying the seller financing note and it will roughly cash flow $1500/mo (roughly 13%, 30 yr w 5K down). They will handle all management but tenant owner is responsible for most maintenance plus lot rent of $500. my main concern is depreciation of the asset; if the tenant owner does not execute and complete purchase i could be left w costly repairs to make it attractive to a new buyer tenant. I am also concerned with the length of term, 30 years for seller financing. Park is located near a military base and has been rated high (5 stars) on google if that's any consolation. 

2. Buy a traditional single-family house: I could buy a single-family house, with lower cash flow, but likely would have some built-in appreciation. 

3. Bonus scenario: bite the bullet and get a non-recourse loan with 30 to 40% down and buy 2? properties w the 180k. maybe cash flow is lower but ROI is better?

thanks in advance!

Loading replies...