1st Mobile home Purchase in Berkeley County SC

[Chris Armstrong]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $38,600
Cash invested: $38,600

This property was purchased right from the MLS and was a distressed mobile home on almost an acre of land. The unit is on septic and well, but the utilities are in good shape. The unit currently rents for $500 per month and the tenant takes complete control of repairs.

The long-term plan with this property is to hold it for a few years, then replace the mobile home on the property with a new one and either increase the rent or sell the entire thing for upwards of $250K.

What made you interested in investing in this type of deal?

It was a low-cost deal that would cash flow pretty well right from the start. The real potential with this deal was the land and ability to flip this whole thing pretty easily for a large amount of profit.

How did you find this deal and how did you negotiate it?

I found it on the MLS. I paid cash and I gave my side of the commission to the listing agent so that he would act quickly and respond to my offer. A lot of agents only look at the commission aspect of a deal and they are missing the big picture.

How did you finance this deal?

Cash purchase

How did you add value to the deal?

I will replace the mobile home in a year or two with a brand-new mobile home that is suitable for the size of the septic tank on the property. This will make the property almost $250,000 in value and my all-in cost will be about $120K.

What was the outcome?

It is currently rented and cash flowing each month. I am not yet done with the value add portion of the process but I am ok with that because it more than covers the yearly taxes, maintenance and makes me more of return than the S & P 500.

Lessons learned? Challenges?

Mobile homes should not be ignored just because they are not SEXY like other asset classes. There is a lot of potential in this type of investment and its very affordable.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am my own agent and I used cash.