First Mobile Home Purchase

[Cody Davis]

Investment Info:

Mobile home buy & hold investment in Varnville.

Purchase price: $220,000
Cash invested: $18,000

Purchased 16 Mobile Homes with Business partner.

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

During a meeting with my lawyer to set up an LLC for investment properties he told me about two older gentleman than owned various properties, mostly mobile homes and were looking to start selling/slowing down. If they did it it must have been for a reason(good or bad I didn't know). Looking at non owner occupant taxes rates in my area mobile homes made sense compared to the almost break even situation with houses.

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

My lawyer, multiple discussions with the owners, and with very little leverage. lol

How did you finance this deal?

A little bit of personal money mixed with hard money for down payment and owner financing.

How did you add value to the deal?

Our value is essentially just being able to take the property management stress off the owners while providing them with a steady check. I think they like seeing our generation getting into the mix as well and kind of see it as a mentor ship type deal as well. We enjoy the advice too!

What was the outcome?

So far so good. Currently under negotiations to purchase an additional 16 Mobile homes and 9 houses.

Lessons learned? Challenges?

Yes & Yes!

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

Our Real Estate Attorney Kevin Brown and his team at Anderson & Brown LLC Hampton SC.