Mortgage for Doublewide Manufactured Home Investment Property

[Perry B.]

I own a doublewide manufactured home manufactured in 1978, but totally renovated inside and out in 2015. It has been permanently affixed to approximately an acre of land, and it is on a permanent concrete block foundation. It is an investment property and is currently rented out for $1000 per month. It is located in Georgia, and I estimate it's value around $140k. I was considering doing a cash-out refi of around $100k, but am having a very difficult time finding someone interested in loaning the money. I do not really need the money and am not interested in high interest rate products (anything above 6-7% would probably not interest me). If I was able to borrow this money, I would probably use the proceeds to purchase other properties. Has anyone had success in doing this type of loan? If so, could you share your experience and where you might have been able to obtain this type of loan? Thank you.

[Thomas S.]

You need to contact numerous lenders and find one that assesses a home based on it being on a permanent foundation as opposed to piers. You will need to educate lenders on the difference.

You are presently losing a lot of money every month with your present financial position and need to liquidate or finance asap..

Based on a investors opportunity value of 10% on cash your equity is sucking $1166 off of your monthly rental income. After expenses you are massively into negative cash flow on your investment. The property itself is not a asset it is now a liability based on the amount of dead equity you have.

Even if you assume the opportunity value you have chosen, up to 7%, you are still paying $816 monthly to your dead equity. If you can not pull money out you should be selling asap to stop your financial bleed. This property is a very poor financial investment that is costing you way more to hold than what your money should easily be producing if properly invested.