All Forum Posts by: John Hausauer

@Eddie Brady Manufactured does mean mobile. However this property does have a permanent foundation and was only moved once. Which was some of the criteria that the lender and I discussed before this last owner occupied hurdle came up. 

In either scenario I intend to put 20% down. 

This loan would be in my personal name. 

I have a 1994 manufactured home available to be purchased for 70k. Currently this home is being rented by long term tenants for 750. They have expressed that they do not want to leave and would happily pay 800/month.

On a 30 year fixed this is a home run. However, because it is a manufactured home, and will not be owner occupied, i'm being told I cant move forward with that product and my best option is a 20 year/5 year ARM.

Running the numbers i'm still showing a 16% CoC and 25% 5 year annualized. Which still seems like a good deal especially considering this property is turn key and has extremely stable tenants.

My question for you guys is, am I just being a sore loser? Its not as good of a deal as it was but it still seems very good. Secondly, are there other financing options that I should be considering for this? The 5 year ARM just doesn't seem super appealing. I don't know where rates will be in 5 years. 

Hi all, looking at picking up my first B&R. I live in a very rural area of South Dakota with very limited comps and even fewer rehab comps. However, refinancing has been hot and I have been hearing that appraisals are coming back better than expected. 

This property has a ton of potential. The main floor has two bedrooms and 1 bath. One bedroom currently has a shower and toilet installed which will be removed, the previous owners had a hospice situation. Additionally the entire first floor is hardwood which is in pretty good condition. I plan to have it resurfaced. The kitchen is a complete gut, the bathroom is in good shape and the shower from the bedroom is entirely usable so i intend to just move it into the bathroom and do some light repairs. 

Where things get interesting is the potential for more in this home. There is an upstairs loft which only needs to be finished to be counted as a bedroom. Additionally the basement is in great shape and once cleaned and demo'd has plenty of potential to turn this into a duplex. Even better a sperate entrance to the basement is already in place. 

Where i'm struggling is determining a healthy scope of work. I will get this property at around 30k, i estimate that repairs to the main floor might run me to 25k on the high end. Much of the dmeolition, painting, cleaning, I will complete my self. I have no doubt that my ARV will be 60k+ with rental estimates in the 500-700 range.

For an additional 30k I could turn this property into a duplex... my worry is that I would have almost zero comps available and homes just don't sell above 140k in this town so i'm not sure I would be able to get my investment back out. Going this route would easily bring rents around 1100 between the units.

My plan currently is to purchase the property, do the main floor renovation, clean and demo the basement, and refi back out while renting. This leaves me the opportunity to analyze the additional renovations down the line while also gives a potential buyer the freedom to use this entire space as a SFH if I ever want to sell.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

It seems like a good deal at even 35k. Have you explored other options for obtaining the cash? Bring in another couple to split the costs? Hard money lender? Know of anyone else who has purchasing power that would lend you the money? Sure offer 20k if that's what you have but if the deal is as sweet as you are making it out to be, surely you can find the money.