Investment property in Red Oak Purchased in July 2019

[Sandy Wickware]

Investment Info:

Mobile home buy & hold investment in Red Oak.

Purchase price: $120,000
Cash invested: $4,000

Property purchased with cash. Utilized our LOC to purchase. Estimated value at the time of purchase was around $140,000. At this time our business is serving as the bank, so the business is making money on the financing and we are cash flowing on the property. Perk is that our tenants are very interested in improving the property, so between what we have done and what they have done, the exterior looks much better than it did when we purchased the property.

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

I knew when I saw the property on the MLS that there was equity. We were looking for a property to provide cash flow.

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

MLS, I am a Real Estate Broker, so I prepared my offer and submitted my offer. We did an inspection and renegotiated the price a bit to offset some of the needed repairs.

How did you finance this deal?

We closed the property utilizing our LOC

How did you add value to the deal?

Removed old skirting and added waterproof board. Replaced the front porch cover that was in bad shape. Changed the paint color in the master bath, it was a neon pink on the trim and changed the exterior color from peach to a medium grey which improved the appearance greatly.

What was the outcome?

We were able to lease out the property very quickly.

Lessons learned? Challenges?

Financing a mobile home is very difficult if it is an investment property. I help owner occupant Buyers occasionally purchase mobile homes which is a challenge. Getting financing as an investment is something that any investor should explore prior to making a purchase.

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

I am a licensed Broker.