First Mobile Home Investment Property

[Michael Driever]

Investment Info:

Mobile home buy & hold investment.

Purchase price: $70,000

Mobile home with lot/property in low income 55+ gated community. 2 beds, 1 bath, with established tenant on Section 8. Turnkey and self managing. Fully funded with HELOC on other stabilized rental property.

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

Low entry cost with good cash flow. Ownership of the property/lot was part of the deal.

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

Local REI Club Facebook page

How did you finance this deal?

100% HELOC funding from other established single family rental house.

How did you add value to the deal?

Planning to refinance with long term financing to payback HELOC and repeat for next investment property.

What was the outcome?

stabilized cash flowing asset.

Lessons learned? Challenges?

Learning how to work with Section 8. Challenge working with senior citizen who does not use new technology for rent payments. A little out of my area of preference (over an hour drive) and more hands on management than I want in the future. The tenant has mentioned wanting to move out into better housing situation for her age and abilities, so we are maintaining a month to month lease instead of my preferred long term lease.

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

Cash deal 7-day close with another member of the IEREIC who owns "SellThyHouse.com" a house flipping business. We used a club sponsor, Inspire Escrow Services, Inc to close the deal. I used my HELOC with PENFED Credit Union for funding.