All Forum Posts by: Terry Drake

Thank you both for your input!

I just wanted to mention a few things that might help..

One thing I wanted to mention that this mobile is not on leased land. It is on real estate and on the tax rolls as real property. I agree 14k is a horrible deal on leased land! :D

The second thing I should throw out there that in this area, run down, vacant mobile homes that need 5-10k of fix up cost are selling between 10-15k (value of the land). After fix up you're lookin at 20-25k total invested. So basically I would be buying this mobile for the cost of the land, needs no repairs, and is ready to rent AS IS.

My thinking is that this is about as low as the market is going to get in this area. No where to go but up and I want to snap up a few income producing properties before prices do start to climb. Of course, more cash flow, the better!

FWIW I countered with these terms to the seller:

A.) 11k over 8 years @ 8

B.) 11k over 7 years

C.) Amortize 11k over 8 yrs with a balloon in 6yrs.

With those terms it puts my CF back up around 225-250 instead of the 175 that I was looking at with their terms.

I'm currently working on a deal for a mobile home on land (real property).

I was anticipating about $250-300/month cash flow. (financed through the bank, 10yr terms). Well due to the appraisal (bank being ultra conservative) I was going to walk away from the deal for the fact that I would have to come to the closing table with too much money which would shoot my ROI all to hell.

I told the sellers agent that the only way I can move forward with this deal is if they are willing to owner finance it. Here are the terms and details.

Property :
1971 Single wide mobile
2 bedroom + 1 office/den area
1.5 bath
12ft x 56
no repairs needed
family park in desirable area
Original contract price : 15k
Appraised @ 12k

I offered 14k if they were willing to hold the paper. They came back with the terms of

14k selling price, 3k down leaves a balance of 11k.

11k over 5yrs will cash flow about $175/month after PITI and after 10% of gross rent for Misc.

Obviously that is well below the numbers I was hoping for. I don't want to jump into a bad deal, but at the same time I don't want to walk away from a good one. Especially if I'm being hoggish about it.

Would you guys be happy with 150-175 CF/month or is it not worth the headache? I try to shoot for $200/month. Especially with an older property that can have appliances or other problems at anytime.

What are your thoughts/opinions on this deal?

Mark, thanks for posting the working link.

I'm not sure I understand your question. Do you mean what do you need to do if someone wants to obtain a concealed carry license?

Chip, how did the deal work out for you? I know this is an old thread but I like to hear the happy ending.

How much did you have to put into it?

How long did you hold it before it sold?

How much did you sell it for and what terms?

I'm in a similar situation right now. An old mobile home vacant that only needs one section of wall replaced, stove, fridge and maybe a coat of Kool Seal on the roof for good measure.

It's in a 50+ park and I can pick it up for $300. I'm figuring less then a grand if I had guys in tuxedos doing the work.

I figure, for less then $1,000 ready to move in, how wrong can I be?

http://www.dndinvestments.com/Property Income Analysis.xls

Not even Jeff can beat that time :wink:

Steve, did you have a problem getting it from me?

Update: I met with the SVP of the lending department at a community bank and it looks like I've got it through as a consumer loan. The main difference being 120 months (10yr) terms VS 240 months (20yr).

Luckily I figured my expenses high and offered low so the numbers still work on this deal.

In case anyone is wondering, the difference between 10 and 20 yr terms was only about $30/month.

The flip side would be to keep an eye on it and wait for him to get more motivated and you can pick it up for a steal. At $470 a month, I don't think it will take long. Right now, it's his problem.. let it eat away at him for a little while longer.

One last thing I'll mention is to try to keep your emotions/love for the property out of the deal.. go strictly by the numbers.