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Updated almost 10 years ago,
New member looking for advice on Mobile Homes
Hello bigger pockets community!
I am a new member to this site although I have been utilizing it along with most of the podcasts for several months now. What an excellent community of like minded individuals. I am new to real estate investing and have not made my first purchase yet, outside of my primary residence. I reside in Fishers, Indiana which is just outside of Indianapolis. I am currently employed full time and have a wife and young son at home. I am super excited about my journey into real estate. So I have been tossing around several ideas over the last couple of months and think I have a direction I would like to pursue and would love feedback from anyone willing to do so.
My plan is to pay cash for land with a mobile home on it, do some slight repairs/renovations then sell the home with seller financing while still maintaining ownership of the lot. I am thinking that my main target would be REO properties that I could purchase for no more than 20k (including land/MBH/repairs), then try to achieve a $600 monthly payment (for both the home and land rent).From just looking around on a few sites, there seems to be no shortage of these in some of the rural areas in Indiana. I think I would be willing to go at least in a 50-75 mile radius from where I live to acquire these properties. A few issues that I am trying to think through are: What would be an appropriate lot rent for the land? I think my plan would be to take the $600, then back out the lot rent to obtain the payment on the MBH. Also, what is a fair rate to charge for seller financing? Would a $1,000 down payment seem about right for these types of property? And lastly, how do I know what to sell the home for? Since I will be purchasing both the home and the land together I am curious as to how to determine what the value of the land is vs. the value of the MBH.
Sorry this drug out a little longer than I liked, but I wanted to make sure I am covering all my bases.
Thanks and look forward to hearing from everyone!