Tax Sale to Mobile Rental, extra lot to build tiny house

[Robert Schoonover]

Investment Info:

Mobile home buy & hold investment in Mancelona.

Purchase price: $8,200
Cash invested: $4,000

Lot 7 40x120 - 3bdrm, 1.5 Ba
Lot 6 40 x 120 - Thinking Building 400 sqft 1bdrm tiny house.
Not sure best way to finance it...

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

I didn't get what I wanted at the sale, so I teamed up with a partner. Had money to invest had to put into something. I used to be a flipper with 400% IRR's, now more interested in revenue streams.

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

Tax Sale
Water Dept can’t seem to get it through their head that their lien was wiped out at the sale. My Attorney is explaining it to them :)

How did you finance this deal?

Self directed 401K
&
Took on a partner, now buying out partners share, private mortgage.

How did you add value to the deal?

New Electrical service, plumbing, Removed tons of Junk, Extreme Cleaning, tore down small building on the other lot. Built a support wall, new flooring, new kitchen cabinets, looking for free/cheep vinyl replacement windows.

What was the outcome?

I have a tenant

Lessons learned? Challenges?

I don’t like mobile homes

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

Daniel Barron, Real Estate Attorney