All Forum Posts by: Brian Mathews

You gross $400 a week or a month? I'll assume month. Look at it logically. You buy a place for $40K. You put down $20K. You still have a $20K mortgage, taxes and insurance. You have to keep power on, water, sewage, etc... Then make any repairs to property. How you gonna pay for all that? You'll be repo'd in a year making $100/wk.

So you expect them to pet sit for you to save $75/day for multiple days and are wanting them to pay a one time fee of $75 when they move out because they didn't clean to your satisfaction? I think maybe it's time to grow up.

I've not done anything, starting researching to get better prepared. You are right about you need money. No money down is a crock of crap. What I've found is you need about $15K in cash reserves and decent credit. After all that, you need a house to flip.

I'm not real familiar with trailers, so trying to get some info. Holding costs and maintenance aren't a big deal, I can account for that. It's the taxes and depreciation I'm unfamiliar with. Entire amount paid by tenant is $825 and $925 minus lot rental of $320. So before any expenses in a perfect world is $500 and $600 left over. Since there is no hope of appreciation, my only hope is depreciation. I did a little research today and looks as if not a good deal overall. I'm not going to pay cash and interest is friggin' too high with too much down. I'm looking at a note of $350 month with 25% down. So I'll either let it go or try to negotiate the price down. I might be better off buying a new trailer and putting on the lot, rather than buying a used one. Rates are better on those newer than 10 years, after 10 years, it makes no difference. You get a better rate on a doublewide vs a singlewide. Cashflowing $250 month on $320 lot rental and $350 month payment before maintenance and vacancies with no appreciation and not sure what depreciation just seems stupid. Especially if there are taxes on home itself.

I'm going to call my bank and see if any possibility of a signature loan or other options available. 12.99% just seems ridiculous. I know its a trailer, but those are credit card rates.

Not sure of why they have to stay other than too expensive to move. Just the deal they are offering.

I've run into a situation where I might be able to buy 1-3 mobile homes. 1 single wide for around $20K and doublewides for $24K. You have to leave them on space which is $320 month and single rent for $825 and double $925, that is lot included. I might be able to get them a little less if I buy 2 or 3. They are 1998 and newer. I don't know a lot about mobile homes. But $500 and $600 month after lot rental and before repairs seems pretty good. I will assume there will be no property taxes since on somebody else's lot. What does insurance typically cost on one of these? Can you depreciate these like you would a normal stick built rental home? I know these are different guidelines, more similiar to buying a car than a house. I think they even have a blue book for them.

Thanks.

I'd look at some of his work. He might be a schmuck who can't get any other work. I did an a/c call on this house this guy was flipping. All work was done, he hired some GC to do work on house. It honestly looked like a junior high shop class had done the work on it. I could have done a better job when I was 13. They used plywood on the counter tops painted white, that looked like it. They used fence pickets painted white to make a door that accessed the attic. Just horrible. It was the flippers fault as well for not watching the work of his subs.

Generally rents are in some way proportional to how much you will pay for a house when buying. I don't know your area and could be wrong. But not sure you can buy a place for $50K and rent it for $900/month. Around here a house you buy (and there aren't many) for $50K will be a complete dump or needing major renovation and will not rent for anywhere near $900 without major renovation to fix it up. A house you pay $100K ish will rent for $900 month.

And bulletproof your rental. Ceramic tile every room. Halfway up bathroom walls. Take out garage door opener if a house, preferably take out garbage disposal since the word garbage is in it, they take that literal.

Mulitple dui's. Been to jail many times, which means he doesn't learn and now driving with no license. Still hasn't. He will get locked up again. Not if, but when. Then you'll have to deal with him not paying rent for obvious reasons and you'll have a house full of his junk to do something with when he does. Which if you dispose of, he'll get angry, if you store, you'll pay for. I'd say hell no.

Get yourself a good used lawnmower, weed whacker and blower. You can make $35+ a yard all day around here all cash money. My wife and I used to do makeready's on rentals and repo's. Some new construction, but a pain in the ***. We'd make $150+ a house for 2 hrs work. All can be done after hours. People also would want other stuff done such as painting a room, fixing a lock, etc... Its also good for networking and meeting realtors and investors and finding properties. The real money was in trashouts. You would sell stuff of value people left behind, I have a neighbor making a killing off appliances, furniture, tools. Anything that isn't of value such as clothes go to Goodwill. Trash goes to the dump, just find out how much it costs to dump. You can rent a trailer or a Uhaul for a few hours to haul if you don't have a truck.