5 mobile homes in 5 acres, how to finance??

Question

Looking at a couple of properties to do a 1031,one of them is a small tract (5 acres) with five singlewides rented generating $2,700 of monthly rent. Purchase price is $259k. I contacted several lenders and no one wants to finance this type of properties, I’m looking for a lender that can do this, I’ll put at least 20% down and have almost 800 points of credit, already own three doors and have a W2 job which I’ve been keeping for 18 years!

Any advice will be appreciated.

Thanks.

Any advice will be appreciated.

Thanks.

Bill B. · Answer

Assume the single wides se worth zero, or maybe even negative $’s. What are the five aces worth once the trailers have been removed. That’s where I would start my price negotiation at. AFTER checking with every city county and state official to make sure you’re allowed to have the trailers there, how many you vans have in the future. I’d also want to make sure there is city water and sewer that the tenants are paying separately.

GL. Let us know how it turns out.

Kevin Romines · Answer

The question is, has any of the Mfg. homes been de-titled and made a part of the land in the form of a deed? If not, then they are all considered personal property. If they have been de-titled and made a part of the land as a deed, then they are considered real estate. Depending on that answer, you may be able to take the loan as a commercial loan. I would check with local credit unions for financing?

I hope this helps?