All Forum Posts by: Jaime Topete

Hello Bigger Pockets,

I purchased my first home, a manufactured home, in Santa Barbara, CA, in 2017. Given that my credit was low (fresh out of college) I was able to get preapproved using my pay stubs (engineer). Rates have dropped since, and I am looking to see if anyone knows of lenders that specialize in manufactured homes where I lease the land?

The appraisal value was $360k and I purchased it for $289k. I currently owe $213k and it is my primary residence.

I have 3 other rentals but those I have no problems with lenders, only my manufactured home is giving me problems

Thanks for reading.

Best, JT

I recently purchased a home (my 4th) in the Santa Barbara Area. My goal is to house hack and move one a year.

Should I pay my mortgage early or save for a new home? I currently add $100 - $600 on top of the normal mortgage payment but I am not sure if this is a smart move.

Any help is appreciated.

Thanks.

Best, Jaime Topete

@Richard Sherman 

Thanks, Richard. The Santa Barbara market (as well as others) make it really difficult to get in but I will work with what I am given. Thanks.

Best, Jaime Topete

Investment Info:

Other buy & hold investment in Buellton.

Purchase price: $600,000
Cash invested: $30,000

I live in this property with a coworker. We purchased this home together as owner-occupied. We turned live in the mother in law unit and rent out the 3 bed 2 bath portion.

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

This was the first new construction near Santa Barbara. (first in my budget haha)

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

My girlfriend's boss showed me the units; he purchased the same model.
I did not negotiate since the new construction price was pretty fixed ( a lot of units sold at a certain price)

How did you finance this deal?

My coworker and I went with a conventional 30 year.

How did you add value to the deal?

We temporarily blocked off a wall inside the units to make the granny unit and 3 bed 2 bath section completely separate.

What was the outcome?

We have happy tenants upstairs that cover most of the mortgage. We plan on leaving in a year.
I will keep buying as owner financed, live there and move out.

Lessons learned? Challenges?

New constructions will not be completed in time.
I made the mistake of renting out (no signatures yet) the condo based on the expected construction date.
The rain came and delayed the process, luckily the tenants were understanding. We lowered their rent as a result.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No agent needed for new construction

Investment Info:

Other buy & hold investment in Oxnard.

Purchase price: $301,000
Cash invested: $35,000

I purchased this condo and lived there for a year. My commute went from walking distance to a one hour drive.
I moved out a year later (to my manufactured home) and I have had the same renters ever since.

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

Honestly, It was all I could afford at the time. I was not to keen to get a condo but single-family homes were just too expensive.
I now find that condos are a lot easier to manage, given that the association (which I hate paying) takes care of all of the structure/exteriors.

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

I found this deal on Redfin

How did you finance this deal?

I went with a conventional loan, 5% down and owner-occupied.

How did you add value to the deal?

I brought my cousin (from the bay area) to come down and remodel the entire condo.
He removed the popcorn ceiling, carpet, old windows, cabinets, vanities, showers and added tile, windows, cabinets and all new hardware/appliances.

What was the outcome?

I moved out and rented the condo to this nice family. I have had no problems ever since. I got lucky with this purchase.

Lessons learned? Challenges?

I have to be very specific with what I want with the remodel. A lot of the material chosen was low quality, such as the paint. I learned that I have to manage and be very specific with what I want or someone else will design the place for me.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Donna de Libro is the agent I use to this day. She is older and professional.
Really nice lady.

Investment Info:

Mobile home buy & hold investment.

Purchase price: $289,000
Cash invested: $80,000

I live in one room and rent the other two rooms.

Negative cashflow (I live in one room) but got word yesterday that the land will be available for purchase soon.
Very exciting.

Total Bills: $2700
Income: $1950

I pay the remainder and I get to walk to work.

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

I had graduated from UCSB and buying an $800k home was not in the budget.
A manufactured home was all I could really get into, given I also had no credit.

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

I found this deal on Redfin; I did not negotiate.

How did you finance this deal?

A local bank that specializes in manufactured homes financed me using my pay stubs.

How did you add value to the deal?

I removed a tree that was bringing in a lot of insects. I had all of the window trimmings redone.
Hired local people to remodel a bathroom.

What was the outcome?

I live here currently, get to walk to work, and my tenants are happy.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not really. The agent represented both buyer and seller. I have not used the agent since.
That is my only manufactured home so I also have not had a need to contact the lender.