All Forum Posts by: David Cox

One question I have is , "Can manufactured homes be depreciated for tax purposes the same way a regular house is?" I'm NOT talking about a mobile home with a skirt around it. I'm specifically talking a manufactured home on a concrete slab that looks like a real house built on site. Curious to see if they have the same potential for tax purposes (depreciation rate) an on-Site built house does.  Anyone know how their appreciation rate compares with a regular on-Site built house?  Please advise.

David

Do Manufactured homes follow the same Tax rules for depreciation and appreciation as do site-built homes? I've considered buying some land and then having a slab and a manufactured home put on it Vs the Std. site-built home... curious if there are any "down" sides. Seems like you can get more "bang for the buck" and many manufactured homes are quite nice- esp for renting.   Not sure about the resale value or any issues selling them either, Please advise.

And Thanks !  :-)

IF it passes, it'll be a recipe for the next financial disaster and market collapse, aka 2008. Few industries can police themselves. There are always predatory members that get too greedy and think they don't have to follow sound logic, any rules, any ethical codes of conduct (Madoff, Kenny Lay, many others). Look at the latest transgressions and fiascos with Wells Fargo... and this was inside the Corporate structure !   Sadly we NEED some regulations to be sure ALL are playing by the same rules. SO if they remove the Wall St- Banking restrictions, look for another big crash 2-5 years down the road.  However, we might not recover from this one (last one was VERY close)... people are fed up bailing these bastids out and NO one going to jail over it.  We did it in 1987 with the S&L scandal - one reason we had and stiffened regulations. The Great Depression gave us the Glas-Stegal Act to prevent future crashes. It was repealed in 1999- and it took about 7 years to give us the mortgage institution - housing crash of 2008.... WHY are these fools going down this road again? Think they've been bought off?  Why are people electing these FOOLS? 

I have found a 1600 sq ft home in Lindale for $126,000. The schools her e are stellar and people are dying to get into the district. I have gone out to several lenders, Quicken was one but also 2 local lenders. The best rates I can get vary from 4.25 to 4.75% with 25% DOWN and about $2500-$3000 closing costs. I was hoping to only have to put 20% and get closer to 4%. I can get a 3.875 % Loan from Quicken but the fees and closing costs are through the roof. I think they're pushing "points" to buyers. The others have lower fees but higher rates. IF one is looking to hold 8-10 years-  what's your advise?  Are there lenders with low fees but also lower rates you know of ??  Thanks in advance !  David

I had thought about a home warranty... I've seen many that covered everything (incl HVAC ) for about $50 / month. (We had one in GA (we lived in Lilburn) that was $39.95, but that was in 2012)  Starting out that might be the way to go. Greatly reduces the risk.

Thanks JG... I agree...One thing I review in my houses is how old is the roof, hot water heater, HVAC... that's why I'm looking at newer homes (pref 10-15 years old or less). Regardless, that does not insure something going out unexpectedly. It just reduces my risk.

Thanks to all !  Very kind of you. :-)

Thanks to you both- this has been most helpful.  JG- I thought Brandon T included that in his $183 / mo cost as described in his book Rental Property Investments - BUT maybe not. Definitely worth the extra precaution and adding more than I have allowed.

CP- thanks much your definition; made it much clearer. (FYI- I'm a scientist- I understand equations.) Clear as crystal !  Best fortunes to you both! 

Many, many thanks to all. ( I do realize these are just estimates.)

1. Yes I need to include closing costs of purchase. Most of what I've see is between $1500-2000 on these homes. And also a realtor fees on the back end. Agreed those need to be in the plans.

2. I'm focusing on newer homes (<15 years old) that are as close to turnkey as I can get. What would be needed for a renter to "move-in", I'd have the current owner do OR negotiate so I'm not stuck with all. I'm not a "fixer upper" guy. So I'm anticipating low maintenance over the 10 yr investment and I did have in my figures $183 for repairs and upkeep. That'll produce $10K in 5 yrs and $21K over the 10 year period. I can do some things (minor repairs-fixes), but would most like have a handy man do moderate ones.

3. I DO plan to manage myself. Save that $100 / month and turn over fees. I'm only looking to buy 2 to diversify my retirement portfolio. 

Any suggestions on how to get more cash flow without raising the rent too much? I can't seem to get anything better than a 20 year loan. That P&I really eats into the budget as well as property taxes.

Christopher, what's your formula for COC? (I'm learning the ropes.)

Best to all ! Happy New Year

...and I want to see if I'm correct. Lindale TX has stellar school system. So property values are good, stable, and many want to move here. I'm calculating 20-40% annual ROIs over 10 years- Is this real? If not, what am I missing ? Equity and P&I are from actual Mortgage tables. Cash flow is low BUT overall looks like a good deal. Annual appreciation somewhere between 3-3.5%- I'm being conservative with 3%. Equity in the 5 & 10 year cells are property value - Loan balance.