4 manufactured homes package - could be my best deal this year

[Shiloh Lundahl]

I found a property off of Zillow in Casa Grande, Arizona across from one of the homes I just bought at the end of November. It was on the market for 53k but I thought that I could rent it out for $650 or $675 and that the market value would be around 55k to 60k. The pictures of were nice and since it was across the street from one that I owned, I figured that I would through out an offer for 45k. It took the seller a little while to get back to me but then the seller accepted and said that they had 3 other properties in the area that were similar to this one and the seller asked if we would be interested in them. All 4 were manufactured homes on land (1 vacant, half way through a remodel, with some issues as far as access to the property, 3 others were located in Arizona City, Coolidge, and Casa Grande and they were rented out month to month for $640, $525, and $625 respectively).

We got them all under contract for 136k. Our plan is to finish the rehab (15-20k) making that property on an acre worth about 120k and rent it out for $1100 on a lease option and increase the rents on the other properties to $740, $625, and $700. Our total in should be around 155k for the 4 properties worth around 255k with rents at $3165. All units were build after 1976 built so they are financeable so we should be able to get a loan on them for 153k with a mortgage payment of around $1050. Add taxes and insurance on them and the total monthly expenses should be around $1500 -$1600 giving us around $1500 a month in cash flow.

All of this snow balled from a throwing out an offer on a property across from a house I bought back in November. 

Lesson learned: There are great deals out there, but you’ll never get them unless you just start making offers.