All Forum Posts by: Sam Collins

If you can not 1031 into the other property I would keep it and cash flow. 

How do you feel about investing in Mobile Homes on their own land?

I currently have a local landlord that is looking to sell 2 of his. Both sit on 3/4 acres. Property value for both is 86k. Taxes are around $2k yearly and insurance is around $1,200 yearly

Currently rented at market rates of $1,100 and $900 monthly.

He is offering owner financing at $180k PP with 20% down and 5% interest for 15 years no balloon.

Homes are 3 years and 8 years old in good condition.

What do you think? Is it worth it?

Hello BP Community,

I am looking to see if I can get some advice on how to present to an owner a owner finance term.

As well as some tactics for negotiating interest rates and purchase prices of these deals.

Thanks!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $280,000
Cash invested: $78,000

Located in the heart of Cleveland, Tx. This beautiful 3,550 sqft 3 bed 2.5 bath duplex sits on .5 acres. This will be a buy and hold investment property added to my portfolio.

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

biggerPockets podcast

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

While out driving for dollars with my wife we noticed this duplex with a for sale sign. Contacted out REA and set up a showing for the same day. We went home and ran rental comps and ARV comps for the area and set our min and max offer numbers. Returned later that day to view property and was in better condition than we thought. Asking price was at 350K put offer in at 250K and ended up settling at 280K with seller paying closing.

How did you finance this deal?

Financed through mortgage broker with conventional

How did you add value to the deal?

Currently replacing the flooring, Ac units, Heater units, and adding additional parking

What was the outcome?

will be rented within the month.

Lessons learned? Challenges?

had a few hold ups on the lending side of things. the lender we used just started her own company. she has been a lender for 20 plus years for another firm. There was a few learning curves for her which slowed closing by 21 days. Also appraisals in the area are way behind so it took forever to get an appraisal done.

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

Yes, Kirby Kneale did an amazing job representing us in all of our transactions. she is the rockstar on my team!

@Joshua Storm

That is a BADDDDD Area! A little trick I learned for Houston is look up the Houston Judgmental map. It is spot on. Also Check out the crime map Harris county puts out. You have to be very careful Around Houston. 1 st over changes EVERYTHING

@Jim Spatzenfeld this property is in a great location. Duplex is in 100% move in ready condition and recently remodeled. Has never been used as a rental before. owner built this property so that his mother can live on one side and her care giver live on the other. after she passed away the home has sat vacant for a year and a half other than when the remodel was conducted 

@Jim Spatzenfeld this property is in a great location. Duplex is in 100% move in ready condition and recently remodeled. Has never been used as a rental before. owner built this property so that his mother can live on one side and her care giver live on the other. after she passed away the home has sat vacant for a year and a half other than when the remodel was conducted 

@Lucia Rushton 

I am not sure where he is getting that market from. I know here in Houston to hit those double numbers on CoC % you have to buy in the BADDDDD areas. im sure Dallas is most likely the same way. If you get inside the Loop here in Houston a little pier and beam home thats completely trashed will still run you in the mid 200's

Good Morning, 

I was contacted today buy a local RE investor with 2 manufactured homes (mobile home) for sale. Both of these houses are in good condition and have long term tenets living in them. (6yrs) and (3yrs). The current rent is up to market value maybe slightly on the lower end but not off by much. I have the capital to pay cash for these but it will eat almost all my capital up. I am considering financing them. 

Here are some of the property details:

Property 1:

- built 2018

- Central air and heat 

- 3 bed 2 bath sitting on .5 acres. 

- Current rent $1,100. 

- Asking price $115,000

Property 2:

- Built 2014

- Central air and heat  

- 3 bed 1 bath sitting on .5 acres. 

- Current Rent $900

- Asking price $75,000

this will be the first time i have looked into manufactured homes so im not real sure on what all i need to be looking for or if they are even a good investment. Seems to be cash flowing very well. 

@Kamil Baldyga

I had my agent pull rental comps for the area. There is only 1 duplex in my area other than this one and it is a 2/1 and rents at $1,050 a month. All the SFH 3/2.5 in my area range anywhere from $1,200-1,700 all similar in detail inside. This will be a long term buy and hold property for me. The area is also growing rapidly.