All Forum Posts by: Michael Driever

I have two rentals. I collect by check and track everything in excel. One of my renters is a senior on low income and does not use automated systems. She pays by money order, snail mail. I have been looking for a system to implement before my next rental property purchase.

Investment Info:

Mobile home buy & hold investment.

Purchase price: $70,000

Mobile home with lot/property in low income 55+ gated community. 2 beds, 1 bath, with established tenant on Section 8. Turnkey and self managing. Fully funded with HELOC on other stabilized rental property.

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

Low entry cost with good cash flow. Ownership of the property/lot was part of the deal.

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

Local REI Club Facebook page

How did you finance this deal?

100% HELOC funding from other established single family rental house.

How did you add value to the deal?

Planning to refinance with long term financing to payback HELOC and repeat for next investment property.

What was the outcome?

stabilized cash flowing asset.

Lessons learned? Challenges?

Learning how to work with Section 8. Challenge working with senior citizen who does not use new technology for rent payments. A little out of my area of preference (over an hour drive) and more hands on management than I want in the future. The tenant has mentioned wanting to move out into better housing situation for her age and abilities, so we are maintaining a month to month lease instead of my preferred long term lease.

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

Cash deal 7-day close with another member of the IEREIC who owns "SellThyHouse.com" a house flipping business. We used a club sponsor, Inspire Escrow Services, Inc to close the deal. I used my HELOC with PENFED Credit Union for funding.

I was recently able to get a HELOC 10 yrs draw then 20 yrs payback on my single family rental property with PenFed. It took over two months to finalize everything, but I had debt issues I had to work out with them. 4.95% 80 LTV, No closing cost if account maintained for at least three year. $99 annual fee waived if interest was paid during the year. On-line and check access.

@Rachel H. Thank you for the response and suggestions.  Good stuff.

I have family trying to purchase a Manufactured Home within a Mobile Home Park (Southern California, Pomona area) where they would be paying space rental fees.  They have qualified for a loan amount exceeding what they need, but cannot find anyone willing to finance a Manufactured Home on rented space.  I know as an investor, I would buy a fixer for cash and turn around and owner finance to a new home owner on a Note.  Anyone know financial institutions that would loan on a manufactured home on rented space?

Owner Financing - See if they would be the bank for you by selling the house to you on a note you both agree to. They would receive a monthly mortgage payment from you.  They would only have to report the monthly payments as income for taxes instead of the whole selling price.  Just a thought.  Sounds like a scenario you can find in the blogs or webinars on this website.  You could negotiate the note to fit your exit strategy. 

@Zachary J Strang First I had to find a Bank that was still offering the HELOC on an investment property. I found a list on a blog of possible Banks and looked them up. Based on my location, some of the Banks did not service my area or were no longer offering the HELOC on investment property. I also found PenFed provided the highest LTV%. The HELOC process has been like refinancing the mortgage. I have had to provide the same information including a copy of the current rental lease and proof of insurance. The process has been slow moving. I have had everything completed for over a week, and still waiting for review by an underwriter. I was first advised the loan would close by Thanksgiving, but now it is looking like mid-December due to work load. Fingers crossed to close soon.

Some people have taken HELOC's on their investment property to provide that next funding jump. Tough time to find HELOC funding, but it is out there. Just a thought. I am still trying to get my momentum too. I am in a very similar situation, but I am holding onto my Rental and getting the HELOC. I'll see where that takes me. Good luck.

I am working with PenFed Credit Union on a HELOC on an investment property at this time. They may cover your area. Looks promising at this time. I hope to close mid-December.

Add me to the list of interested folks - from Inland Empire Area.