All Forum Posts by: Ben D.

When you convert the tenants after 12 months rent to owner finance, do you credit their rent paid the first year to the cost of the house?

Thanks Steve. I have not done a owner finance this year or ever, so I would be under the Dodd Frank limits. All things said I decided to go section 8 due to the $1100 rent guarantee it comes with.  Cash on cash break down:

1100 monthly rent - 150 monthly insurance and taxes - 150 estimated repairs and misc = 800 monthly

800 * 12 = 9600

9600 / 29000 purchase price (including title ins. / closing costs) = 23% cash on cash

It seems like a pretty good and legal way of doing it! Thanks a ton.

Now here is a curveball to this topic. I was told I could get $1096 monthly with section 8. And yes I understand the risk of section 8, but would the additional cash flow make keeping the property worth it? The home was manufactured in 2003, so it should still have a good amount of life left in it. 

I still lean to the owner financing route but might as well see what others thoughts are.

Thanks yall. I'm going to do the owner financing route and utilize a realtor for showing it. Paying commission sucks but in this case well worth it....

Hey everyone. I recently bought a foreclosed mobile home for $27000 with .5 acres of land. I leveraged a line of credit paying about 7 or 8 percent interest to buy the whole thing. The question is whether I want to do a quick sell and get 23k after taxes and paying back the line of credit. 

Or keep it and rent for about 700-800 monthly after property management fees. Renting it will take about 8 years to repay the line of credit and gain what i would earn selling right now.

Selling seems the obvious answer but I appreciate any feedback.

Owner verification as well as liens etc. should be left to a title company. All it takes is about $1500 in tax liens, HOA fees, or anything else to make a title company worth it. Timing depends on many variables, including your loan for the land (private or not).