All Forum Posts by: Eric F.

@Rachel H. Thanks I will order both of those. Your website is also great.

Eric

Thanks @Jon Klaus I think I remember you saying that before

Eric

@Rachel H. Any particular repair guide you would recommend?

I will check the wood, AC, and pipes as you mentioned. This one has Central Air but also a window mounted AC unit as they spent most of their time in one room and just used that.

@Jon Klaus Do you buy the land with the home already on it? Or do you buy land and put a home on it? What kind of numbers do you usually experience on the deal? A buddy of mine and I were recently talking about buying cheap land and putting a mobile home on it cash flow until it appreciates. However, it seemed like the set up costs would be a lot by the time you got utilities connected.

@Stephen Dominick How can you rent to own the mobile home and keep the land? No one is going to want to pay down the home on your land and then once they own it move it. Moving it will probably cost almost as much as the value of the home.

Thanks for the input everyone. @Troy Bevans we seem to have the same ideas.

Hi Everyone,

I am buying a mobile home this Saturday and have a couple of potential buyers lined up to do a Lonnie deal. Finally, my first success!

The park owner I met with said another man is trying to sell his home in the park as well. It is a 3/2, 10 years old, and apparently very nice and in good condition. I have not seen it yet.

He lives in another state and has it rented for 800 a month. The lot rent is $350 (including sewer and trash). He said the tenant will sign a new lease if he sells it. He is asking 12k, but I am hoping to get it for 9 or 10k.

What type of expense reserves should I factor in? The renters are a couple with no children. He said they were only late on the rent one time in two years and he thinks they will be happy to live there a while longer.

I feel like this should be a good deal however I cannot find much information on people holding mobile homes. As soon as these tenants left unless I found other quality ones I would sell it, holding the note.

Thanks

Eric

@Troy Bevans The $300 is before any expense aside from lot rent.

It looks like I might be at $300 - 25 (insurance) - 30 (repair allowance) - ~65 (10% vacancy account) so that leaves 120 per month after all those allowances.

I am in for under $5,000 so that is not a bad ROI, but one bad expense could put me behind.

My plan now is to either sell it for $12k owner financed or rent it for $650. Whichever happens first is fine by me.

thanks for the reply

@Troy Bevans I am buying a mobile home this week and have a question about renting it. I was planning on selling it but I did think about renting as well. I think it can rent for 650, the lot rent is 350, so that only leaves 300 cash each month. The lot rent includes sewer and trash (not water). I know taxes are much lower, and I imagine insurance is, but should I be able to cash flow in the long run or is this too thin?

I took a class through the local community college here called "Creative Real Estate Investing." The instructor had invested here locally for 30 years and is pretty successful. The class was good, nothing you couldn't learn through BiggerPockets and books, with the additional insight into local factors. It was only 90 bucks for 6 nights, roughly 3 hours a night. I would recommend it to anyone who wanted to get an overview and see if real estate investing interested them.

I am just curious, what do you think the first question should be if not that one?