All Forum Posts by: Adam Drummond

@Alex Leendertsen 

I'd say go for it if the inspection pans out.  My wife and I lived in a triplex building near a university and rented the other two units out as we fixed them up.  Doing that helped us build equity and live a little cheaper month to month (a lot of the money we saved went back in to the property to fix it up).  I screened the tenants and made sure that I checked their references and previous landlords.  Make sure the basement doesn't have any moisture issues (ours did, and we didn't find out until after we owned it).  Best of luck!

Adam

@Mark Gruetzmacher 

Hey Mark,

I am a Realtor myself and called to make the apt to go check it out, and it was already under contract.  I am currently looking for another deal similar to this one.  A few months ago before I sold my last rehab I saw a few deals like this, but wasn't able to act on anything.  Of course, now that I am ready to make a move....crickets lol.  I noticed you were from S. Dakota.  I spoke to a local builder a couple years ago, and he was purchasing lots in S. Dakota and building there (even though he was from s. Carolina).  He said that the oil business was creating a boom up there.  Hopefully I will find something that will work out for me before too long. 

Adam

@Zach Davis 

and  @Robert Leonard 

 these guys know what they're talking about, and hit on everything in my opinion.  also keep in mind that an fha loan is not intended for a property that needs much work.  I have had fha appraisals (im a realtor and an investor also) almost fall through due to the appraiser noting peeling paint on windows, stained carpets, crayon and marker on walls, etc.  best of luck.

@Rocky V

You put a lot of work into that one.. you seem to get great rent though.  I am not looking to do real extensive repairs, even if it means paying a little more for the home.   Here is a link to one that I am going to go look at:       

https://www.homesteps.com/address/104-Bradford-Ct-Easley-SC-29640/43950038_lid

i'd say if I got that in the mid 20's (haven't looked at it in person yet though) then rent it for 675-750 per month, i'd do it. 

@Leslie A

Thanks for the recommendation.  I will have to look into that one and also "deals on wheels" as mentioned in a prev post.

Thanks everyone for the quick responses and ideas.  @Joseph Ball I will check that boo out, and see what good info I can find.  Ricardo, I thought about that too.  I'd pay cash for the mobile home to avoid any payment.  I figured if 5-10 years later, I wanted to get rid of them that I could sell it cheap and still have the rental income that I have netted ove the years. 

-Joshua Daniels,

what you're talking about with moving a used mobile home to a lot is something I have thght about too.  Some of these homes are on over an acre, and I would split the lot up to accommodate another septic and water tap for a 2nd mobile home.  It seems that buying a used mobile home is more expensive than I thought though.  I was under the impression that I could be a newer single or double that was in decent shape for 10k or less, and from what I have seen on craigslist and other sites, that is too cheap.  Sounds like you have a small cash cow with your set up. 

Also, I know that I can make good cash flow with doing this.  My concern is that I do not want trouble tenants, and I don't know how picky I can be with selecting tenants for mobile homes (even if they're in nice shape).  I use to own a triplex near a university and I was able to be super picky about my tenants (no smoking, partying, references, etc), and it worked out well for me. 

Leslie,

thanks for the encouragement, and for sharing your thoughts on the subject.  

Hey Everybody,

Up to this point my real estate investing has been mostly buying, rehabbing, and selling for profit.  I have kicked around the idea of buying individual mobile homes on their own land and using them as rentals.  I am not interested in a trailer park, but individual homes.  In my area you can get a bank owned double wide 2000 or newer on 3/4 acre lot in decent area for 25k pretty often.  I figured with some improvements and appliances that I would have on avg 30-32k invested, and the 3-4 br models rent out for 650-850 depending on size, etc.  Taxes and insurance are cheap too.  I do realize that the mobile home loses value, but the rental income it would be able to pay for itself in 4-5 years.  Any thoughts on this?  I don't want headache tenants (no landlord would), and I was hoping that if I bought a nicer unit in a decent area, that I could find better tenants, and ofcourse charge a higher rent.  Thanks in advance for your input. 

Adam

hi kirk,

Im new to this site myself, and am working on my 4th rehab right now. are you paying cash for this property or conventional financing, etc? seems like you are not leaving enough room for profit especially with a 200k purchase. have you figured the holding costs on this property (taxes, insurance, utilities, etc)? also, when you sell it are you going to have to pay a realtor commission? I live in S. Carolina, and am able to find deals in the 55k range with usually 20k in repairs, so a completely different market im sure. I haven't had a house yet that did not have an unexpected repair come up. In my opinion, I think 175k is too much to pay for this property to rehab and resale, using the information that you stated. hope this helps at all. best of luck man!

Adam

Realtor /Investor

well... making a higher salary helps. my wife and I bought a house that was less than half of what we could afford. we also kept our old used cars and lived within our means. this isn't the popular thing to do now days, but for someone like myself who doesn't make much money.... it's the way to go to reach your long term goals. Good luck man!

Joe Fairless,

Thanks man. Checked out your website, and looks like you have been involved in a deal or two (sarcasm). I enjoy reading other people's success stories, especially when they started with $0 like myself and my wife. Living frugal and below your means to achieve a bigger picture goal is what helped us get started. Thanks again for the reply.

Adam

hi Alex,

I am a newbie to the site as well. in my experience... banks look at debt to income ratio, and now days for normal investors like myself, they do not want to see more than 5-7 mortgaged properties in your name. most banks do not want your monthly debt to exceed 44% of your gross monthly income. this includes the mortgage that your are currently applying for also. they also want to see that you have a 6month reserve for all principal, interests, taxes, and insurance on any property that you have, plus the property you are applying for. I hope this helps somewhat. I live in S. Carolina, and this is what the banks around here look at. God Bless man.

Adam