Getting Started in Real Estate Investing

[Keith Brock]

Thanks to the help found on BiggerPockets I am finally trying to get started in real estate investing after wanting to do so for 25 years! I've read and studied a lot and have been analyzing deals using the calculators. I have found a relative small mobile home park with 9 units with room to add one more unit. With the 9 units, it generates $5,433 in monthly income. Calculating with a selling price of $300,000 (the list price is $345,000); a 20% down payment and a 30 year amortization loan at 7% , the property will cash flow at $1674 per month. Adding the extra unit will obviously increase the cash flow to potentially over $2,100 per month. Half of the units have had a good rehab performed over the past year so there can be some additional rehab done on the remaining units to increase the overall value. I have contacted numerous lenders but most have a minimum of $1 million for mobile home parks or they have to have 75% LTV which I can't hit due to lack of funds. The seller is rejecting any or much seller financing at this time ( I have not presented a real offer on paper at this point). My goal is to build a portfolio of buy and hold properties that will produce a passive cash flow of $10,000 per month within 15 years.

For my learning purposes, is the above deal a good one or a bad one?  Not including things like physical property inspections, septic systems, area survey, etc. what else must I know before proceeding?

Thanks to all for the help and continued education.

[Andriy Boychuk]

I agree with @Rachel H. it would be very hard to find the lender for this deal, unless you use the local bank and you have relationship with them already.

what is the lot rent in this park? What is the lot rent in other parks in the area?