All Forum Posts by: Jaron Walling

 Haha exactly then buy 12 of them! On paper they look great but in reality it's hard to make real wealth. I'm sure another savoy investor will chime in and change our minds, but that's my understanding of mobile homes. 

@Vince Nguyen Current primary. That's the predicament of using conventional financing. The lending is strict but the terms are great. It doesn't have to be occupied by tenants, just a signed lease + deposit. You'll have to bridge that "gap" or come up with more money for the DP before purchasing the triplex. Some people pull a HELOC on there current property to do it, but it's like robbing Peter to pay Paul. If you already have a super low rate a cash-out ReFi doesn't help. Just depends on your current rate, strategy, future cash-flow, etc.

If you’re serious about this endeavor put your current home on Zillow to rent with an occupancy in 90 days before you sign a PA for the next house.

There are other lending products that are not as strict but the terms are different. I'd research them before you buy. Best of luck man. 

 He was helping a friend in a weird situation but $700 was fairly close to what others rented for. When he sold it was basically a wash, less the cash-flow collected. There was no appreciation on the trailer.   

What's your time worth? He did the repairs and remodel himself. There was no scale and he didn't own the dirt. He made no money. I guess don't be in that situation if you buy a mobile home? Find something that cash-flows like crazy or don't buy it.

@Carl Rowles Mobile homes are a niche of REI just like anything else. There are pros and cons to every type but mobile homes are pretty unique.

The main issue is land... or lack-there-of. Based on your post you're talking about buying the trailer, not the land. You're buying a trailer and a tenant pays the lot fees. Not every trailer is built the same nor is every park in the same location, but more often than not they are a depreciating asset. Trailers don't go up in value like conventional houses.

In my opinion to get the true benefits of buying mobile homes you want to own the land underneath them. If not you have to scale massively and deal with the PM that come with trailer parks. One of my best friends paid cash for a "handyman's special" trailer in 2021 for $9k. He spend $3k fixing it up, rented it for $700, but lot rent was $300. He sold it earlier this year for $15k. Do the math. He learned lessons but made pennies for the experience. This was during the biggest run up in RE prices since FOREVER. In his market he could have bought a SFH with $12k for the DP. I know this because I grew up there. He would cash-flowed the same if not more, loved it or hated it, and if he sold made significantly more $$$ for the experience.

@Vince Nguyen Yes you can absolutely do that, but there are lender specific guidelines you have to meet. 

Some of the specifics are credit score, DTI, signed lease agreement, and whether or not the lender accepts rent (house-hack) as income. If they do it increases your odds of getting approved. If they don't you personal financial situation plays a bigger part in securing a loan. I can guarantee you'll need documentation of lease, and rental insurance before closing on another home. If you work with the same lender that may speed up the process but expect a typical 30+ day closing. It's never a quick closing with conventional loans.

Shop around with local lenders, ask these questions, and get answers before you try to buy the triplex. 

@Don Owens My 9-5 job revolves around Indiana water regulation and well installation. Installing a well in central Indiana costs about $15k and a septic is $7-10k on average. 

If you make it that far I recommend English Well Drilling. Family owned, smaller company, that won't rip you off. Avoid C&J. 

I hope these numbers are helpful. Best of luck.  

@Katie Smith He probably needs a quick closing (cash) to get the deal done. Even without the market details it's a no brainer.  

@Trent Gulino Once you complete the remodel shop around for DSCR loans. The rates are higher but the terms are great. You can cash-out refinance in under 90 days. That's what a lot of investors are doing right now.

Conventional loans jumped to 12 months seasoning about a year ago. No thanks. 

@Shawn Nofziger If you're green to REI the auctions are not a great place to start.

You should download the lists of properties, research a few, attend online or person, and learn the basics.

It's not as simple as the RE gurus preach on social media. I would not bid on anything. I have done this few times and then compared the sold price to my numbers. In this market the auctions are dry. The majority of properties are not deals. In fact if you don't do proper due diligence some are "traps" with bad layouts, fire damage, and tiny sized lots. 

Some RE is perpetually a bad deal. You can find opportunities on MLS and with wholesalers and walk the property. This eliminates half the risk! Most of the auction properties you can't go inside. Newer investors will not understand that if they don't hit a few base hits and get the ball rolling.

@Tanya Maslach What was the asking the price and what was your original offer?

I think option one is better if you want build a lasting relationship with this agent. Get your agent paid. 

If the COC has a difference of 0.3% who cares? That's a wash and not worthy of attention. If you went of 10% to 6% that's another story.

"Furnishings cast slotted for the property." - If you get creative on this maybe it's enough to the make the numbers work. 

@Devin James The 1 habit that changed my life is I started prioritizing wants vs needs. 

Almost every dollar I make (active or passive) has a job when it hits my bank account. If I want to buy something I leave it in my shopping cart for days before buying it. I circle back and think about my budget. I think about how purchases affect my personal goals, our tenants, and people I buy gifts for. 

This habit is critical for real estate investors because it forces the maximum ROI out of every dollar spent. Whether it's buying the first property, remodeling, renting, or selling it slows you down and eliminates impulse decisions.