Buy and Hold Live in Rehab to Rent Later

[Stephanie Southerland]

Investment Info:

Mobile home buy & hold investment in Safford.

Purchase price: $25,000
Cash invested: $28,000

956 SF single wide with a 900 SF addition, with large carport and workshop. Ground Set, and a roof over the original roof, that is pitched more like a house, with an attic. There was minimal work needing done, kitchen was already redone. New carpet, Paint, and a new shower surround in the master bath. We have a few cosmetic things to do, and it is rentable for 1100-1200 per month. It's a pretty comfy home, and has a lot of space for the price!

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

Saw an opportunity to capitalize on our cash

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

Driving for dollars and Deal Machine. The seller called me, and turned out I knew her from several years ago. It was her parents home, and the neighborhood was originally a retirement type of area. They had both passed away several years back, and her and her sisters had rented it out, and also seller financed it previously, and had to foreclose. They were just tired of dealing with it and didn't have the time. I asked her what she thought they'd like to get out of it...

How did you finance this deal?

Cash from the out of state flip that we had just closed on.

How did you add value to the deal?

We have painted, new carpet, and bathroom flooring, will be adding some other touches upon move out before renting out.

What was the outcome?

It's actually a very comfortable home, and we are excited to move on and get it rented out, as soon as we find another that we can move into. We were able to take out a loan on it, with my dad, at 10%, interest only, towards the purchase of another property and rehab costs.... which will be refinanced in 6 months into a conventional. (on the new rental property), and we will pay him off with that, and will have enough towards another property.

Lessons learned? Challenges?

I cannot think of any negatives yet!

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

We are Real Estate Professionals :)