All Forum Posts by: Dylan Bennett

 Would depend on the contract. If you are represented by an agent I would ask for their opinion (but remember, they are not a lawyer). The best solution would be to send it to your lawyer to see if there is a way out of the contract to receive your earnest deposit back.

Investment Info:

Mobile home buy & hold investment.

Purchase price: $25,000
Cash invested: $25,000

Purchased a mobile home in a great mobile home park for 25k. I showed a property to a couple who were looking to buy a home. We ended up discussing a property they owned at a mobile home park and they were willing to sell it for 25k. This property rents out for $1,050 a month. I am going to improve the property with minor interior renovations that should raise rent to around 1300. There is a lot fee of about 350 a month. Taxes are 250 a year due to it being "personal property".

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

Cash flow, cash flow, cash flow

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

Off market, asked my clients if they had any properties. They were interested in selling, I was interested in buying. They would not be able to sell the mobile home for 25k because it truly is valued more around 15k.

How did you finance this deal?

Cash purchase

How did you add value to the deal?

n/a

What was the outcome?

cash flowing property of $700 a month

Lessons learned? Challenges?

You never know if someone has a property they are interested in selling, so just ask.

Investment Info:

Mobile home buy & hold investment.

Purchase price: $25,000
Cash invested: $25,000

Purchased a mobile home in a great mobile home park for 25k. I showed a property to a couple who were looking to buy a home. We ended up discussing a property they owned at a mobile home park and they were willing to sell it for 25k. This property rents out for $1,050 a month. I am going to improve the property with minor interior renovations that should raise rent to around 1300. There is a lot fee of about 350 a month, but that is the only fee associated. The taxes are ONLY 250 a year since it isn't "Real property".

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

Cash flow, cash flow, cash flow

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

Off market, asked my clients if they had any properties. They were interested in selling, I was interested in buying. They would not be able to sell the mobile home for 25k because it truly is valued more around 15k.

How did you finance this deal?

Cash purchase

How did you add value to the deal?

n/a

What was the outcome?

cash flowing property of $700 a month

Lessons learned? Challenges?

You never know if someone has a property they are interested in selling, so just ask.

You should try taking out a commercial loan on it. There are more options out there to cash out other than typical mortgage lenders. I have refinanced a couple BRRRRs with conventional loans because a typical mortgage would not work. The interest rate last time I got quoted for it, was actually lower than interest rates on a conventional loan anyway. You'll typically find commercial loans to be 20 year loans so you'll need to make sure you still CF with higher monthly payments due to it being a shorter payback period.

You need to call a couple commercial lenders and I'm sure you can find someone to loan on the property.
 

I am an investor and think it could be a good idea to limit number of investment properties someone/REIT can own. I am not sure if this has been done anywhere and would be interested in seeing data/details showing what the outcome of it was. Was there good outcomes allowing individuals to buy more primary residence homes? Did it help prices goes down to help those first time home buyers?

I don't love the idea of cracking down on RE investments, but I think it is a benefit for everyone when people own the property they live in. We need to find ways to increase home ownership, and my base level view is that this could be a decent way to attack that. 

So I have come across a property that needs alot of work. It is a 2/1 with a 1/1 efficiency apartment above it. It also has a 1/1 efficiency apartment in the back yard. The property is in pretty rough condition and would probably need around 80-100k to get it fixed up. It is also not hooked up with City water or sewage (has a septic tank and well).

My intital thought would be to rent out each unit long term to whoever would need it. The total cash flow for that would be around 1800 a month for all 3 combined. However, I started thinking of unique ways to maybe up the CF. I thought since it was located right off an interstate that I could rent out the efficiency apartments to truckers coming through the area, but I am not sure how that would be done or how to advertise for that.

This leads me to my questions:

- Has anyone done something like this before with any success?

-If so, how did you go about advertising the property and getting it rented out?

Thats awesome man. Congrats! A good wholesaler makes an investors life 100x easier.

Hey Jenny! Depending on what is needed in renovation I would probably put more for down payment to lower the PMI. For example, if putting 12,000 in for rehab will return the same rent as would 18,500 of rehab, I personally would rather pay less monthly and in the long run.

If you are comfortable going into your reserves a bit with 20% down and over 12k in rehab that would be my recommended path. That being said, if the work that needs to be done to get the property rented needs more money up front it may be better to go with the lower down payment so you are not stretching yourself thin. 

If all you will be fixing/repairing is cosmestic I would say to keep more money in reserves for any CapEx/major repair items (I.e. water heater, roof, HVAC, etc.). If any of these items break down you want to ensure you have enough capital to repair these items.

Hope this helps and good luck!

Hey Keith. Well done with your savings and wanting to make the jump early. I don't think you'll regret it.

A couple people mentioned finding a co-signer or hard money which both are great options. Since those have already been mentioned I will recommend another avenue to look.

If you can find someone to rehab your property for 50% of profits that could be a very great way for you to get started. Purchase the property with whatever down payment you see fit (you still will more than likely have a co-signer in this situation). Your partner will rehab and once you sell you will be able to split the profit.

Hey Brian! I would recommend spending some time reading some RE investing related books to expand your knowledge! This will help you to narrow down the lane of investing you want to go. For example, do you just want more income - go flipping. Are you investing long term - buy and hold or BRRRR would be great.

Since you say you are limited on time I would recommend trying to find a partner that will be able to spend some time trying to find deals in your market, or other markets. There are many people out there who have the time to find deals, but don't have the capital. This could be a great opportunity for you to step in and provide the capital for the investment projects.