Investment Info:
Mobile home buy & hold investment in Fairmont.
Purchase price: $42,000
Cash invested: $8,400
Purchased two older mobile homes as a land only deal. Also on the property is a one-car garage/workshop and a storage building. Great potential in this property, on almost a full acre of land, made this an intriguing investment.
What made you interested in investing in this type of deal?
It was interesting to me because it was on the MLS as a land deal, but I found it was more of an investment since there were two mobile homes bringing in rent, plus there was a garage/workshop and storage building on the property that are potential revenue sources.
How did you find this deal and how did you negotiate it?
Found it on the MLS and used my real estate agent to negotiate the deal.
How did you finance this deal?
We financed this deal conventionally through a local credit union.
How did you add value to the deal?
We're adding value by rehabbing the properties and putting in nice finishes, which will draw higher rents.
What was the outcome?
We're still working on the rehab, so we expect to have these homes available soon for tenants.
Lessons learned? Challenges?
Lessons learned - Do your due diligence. Even if the seller and your agent give you information, double-check for yourself. We were told trash service was for both properties. We found out that trash service is required for each property. Doubled our cost, which we will make the tenants pay going forward.
Challenges - Time. Expect early on in your deals that your time needs will be high for your deal (fixing things, finding contractors, property managers, tenants, etc.)
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We worked with Dream Home Properties. They understood what we're looking for and were very helpful. Also, local lenders seem to be more flexible in doing deals than more regional or national banks.
