All Forum Posts by: Lisa Fryer

We also have this strategy. We started out developing land and putting new mobiles on and selling. Then we kept a few for rentals. The biggest hurdle is going to be financing. There isn't a conventional loan product for an investment manufactured. If you can raise the funds in other ways with attractive financing that could be an alternative option.

You can do a home equity on a rental at some banks. Key Bank is the one I found. There are lenders for investment manufactured homes but they are hard to find. I know 21st century mortgage does them but they're shorter term, only 10 years. I need a longer term than that which is why I went with the home equity. This could be different in other states but it's what I'm finding here where I am in Washington State. Maybe other states have easier lending on investment manufactured but I've talked to many lenders here and had a hard time finding anyone.

I'm currently working on this right now. You have to get either a home equity loan or a HELOC as far as I have found. It's not considered a refinance if there is no current lien on the property. The issue is it's very difficult to borrow on an investment manufactured home. Owner occupied are much easier. You need a portfolio lender as they don't qualify for conventional loans right now. I'm currently working with KeyBank on a home equity loan. They're one of the few banks that I could find that will loan on investment manufactured.

I would be interested. I still consider myself fairly new to investing. I'm working on my sixth deal right now. I focus on Kitsap and Mason counties as well as the Key Peninsula. My niche is manufactured homes on their own land.

@Kyle O'Donnell I'm still waiting to hear from the gentleman who placed one on his lot. Apparently he is selling to his kids and is waiting for them to improve their credit score before they get the loan and will do appraisal then. He said he spoke with the bank and they said they will treat it as a stick built for loan purposes. I am not sure this will impact appraisal though. I will keep you updated when I learn more.

Hello Bigger Pockets community,

I'm working on purchasing an off market deal that has a shared septic system. There are four lots that share the system with the drain field located on a parcel owned by the home owner's association. I haven't seen a setup like this before. I am wondering if this will give me any issues selling to a buyer that will need to finance the purchase. Thank you!

Hello Bigger Pockets community,

I'm working on purchasing an off market deal that has a shared septic system. There are four lots that share the system with the drain field located on a parcel owned by the home owner's association. I haven't seen a setup like this before. I am wondering if this will give me any issues selling to a buyer that will need to finance the purchase. Thank you!

Yes Chris it is stories like this that give me serious pause becoming a landlord. Our state was tenant friendly to begin with and seems to be getting more and more so. But then again I have friends that are landlords and haven't had any problem collecting rent. So it's definitely a risk you take as a landlord.

As this is my first time as a landlord I planned to get a property management company to help find the tenant. I know screening is the most important part. It's worth the extra money to me to make sure that process is followed as best as possible.

Not only that but I will plan to have large cash reserves as well just in case the worst happens.

Thank you Paul! This is exactly the kind of analysis I was needing help with. I anticipate property taxes and insurance might be more around $250 a month but that still leaves me with decent cash flow. I don't anticipate any capital expenses anytime soon as it is a brand new home so that helps.

I'm sure I could get better return if I invested out of state but I don't feel confident enough in that yet. I like that this property is just 10 minutes from our primary so we can keep tabs on it that way. 

That's a great idea to keep two different mindsets on the different sides of the business. We have gotten fairly comfortable with the business model we have developed to generate cash. Now to work on the rental side.

Thanks again for your response and assistance with the analysis. It was so very helpful!

After quite a few phone calls I was able to find two banks that would do portfolio loans on a manufactured investment property. Both Key Bank and Timberland Bank will do them. Of course the rates are higher but not as bad as I would have expected.