All Forum Posts by: Jason Ray Richardson

I seen where some investors use 50% of the amount owed on the contract. 

Maybe if you could negotiate a smaller price and sell/give the homes to people to live in that will pay you rent could be a faster and less capital intensive way to get the park up and going. 

You're right @jay Hinrichs there is a lot less risk just renting the land. It is easy to get lured into the bigger gross numbers that owning the homes bring. Keep your mind on the net (after expenses). With that in mind, if you could negotiate a smaller price and sell/give the homes to people to live in that will pay you rent could be a faster and less capital intensive way to get the park up and going. 

I would, but that's just me.  Some people are less risk averse than I am. But I see a lot of money being sunk in this thing before you start seeing a return. If you have 50-75,000 extra to put in this thing and are ok with it taking time before you start seeing it then go for it. Or if you had trusted relationships that were going to be boots on the ground in the area to make sure it's done fast but right. Or if you were getting the property for 75,000 then a lot could go wrong and you'd be ok. But again that's just me.

It will probably pencil out once you get it full. Depends on if you subscribe to having only tenant owned homes versus being okay to manage the park owned ones. Not sure that I would do one that far away, needing that much rehab as a first deal. If you do, definitely have some good reserves to get all of those repairs done and more money for the things you will discover after you buy it.

Just based on your notes, I'd sell them all and then once the smoke clears you can invest again in something else if you desire. Just my 2 cents worth and they say advice is worth what you pay for it.

Investment Info:

Mobile home buy & hold investment.

Purchase price: $36,000
Cash invested: $4,000

Mobile Home Park in disrepair. Now cash flowing 2,000 a month not counting the note on one of the homes the tenant is buying.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $32,000
Cash invested: $40,000

I purchased the home next to me out of foreclosure. It was my first investment property and what bit me with the investing bug. It was a 3 bedroom house that was laid out weirdly. I gutted it, fixed the flooring in what was the living room, replaced all of the windows. All in I was about 72,000. The house appraised for 124,000

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

It was the house next to mine so I wanted to make sure it was done nice.

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

I knew the former owner and found out that it was being auctioned off at the courthouse steps.

How did you finance this deal?

Bank Loan

How did you add value to the deal?

Totally remodeled. It was pretty much a diamond in the rough.

What was the outcome?

I rent the home out for 1,000 a month. I BRRR the property and used that money to buy my first mobile home park.

Lessons learned? Challenges?

The lessons I learned were on the deals after this one. This one was so good and fairly easy that I started thinking that they all would be that way.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $32,000
Cash invested: $40,000

I purchased the home next to me out of foreclosure. It was my first investment property and what bit me with the investing bug. It was a 3 bedroom house that was laid out weirdly. I gutted it, fixed the flooring in what was the living room, replaced all of the windows. All in I was about 72,000. The house appraised for 124,000

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

It was the house next to mine so I wanted to make sure it was done nice.

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

I knew the former owner and found out that it was being auctioned off at the courthouse steps.

How did you finance this deal?

Bank Loan

How did you add value to the deal?

Totally remodeled. It was pretty much a diamond in the rough.

What was the outcome?

I rent the home out for 1,000 a month. I BRRR the property and used that money to buy my first mobile home park.

Lessons learned? Challenges?

The lessons I learned were on the deals after this one. This one was so good and fairly easy that I started thinking that they all would be that way.

I don't own any homes there so no section 8. The 3 homes I had in that park when I bought it, I sold to someone that is paying lot rent+water now. Rents are a little low here in Mississippi when compared to the nationwide average but if you get things at the right price and just inch up on rents, returns are good.