1st investment Land Hack!

[Tripp Warren]

Investment Info:

Mobile home buy & hold investment in Caldwell.

Purchase price: $25,000
Cash invested: $1,000

I used the HELOC I have on my personal residence to purchase a used mobile home for $25,000. I've put $23,000 worth of rehab (still using HELOC money). I've got $1000 of my cash in the deal. The house rents for $1,650/mo. and cash flows $650 each month.

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

I was having a hard time finding an SFH that would make sense for my numbers. So I "land-hacked" some space on my property that wasn't doing anything. Now it generates income!

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

Driving for $$'s. I passed the used mobile home every day and one day I saw a for sale sign on it. Called the number but it always went to voice mail. One day I drove by and the owners were at the property mowing!

How did you finance this deal?

Through my HELOC I had on my primary residence.

How did you add value to the deal?

I put $50K of rehab work into this used, dirty, outdated mobile home.

What was the outcome?

I purchased the home for $25K, I put $50K of rehab into it. It assessed for $78K and it generates $650 cash flow which I put 100% back into my HELOC.

Lessons learned? Challenges?

Contractors! Finding good ones that you don't have to go back and redo what they did. Have a clear scope of work before work is started. Inspection, Inspection, Inspection even if you know you're gonna do all the work.