All Forum Posts by: Tony SanFilippo

Is it a HUD mobile home, or is it a IRC manufactured home? Is it on a permanent foundation (wheels taken off)? An IRC compliant manufactured home should refi with a conventional loan. Mobile home on HUD standards will be much more difficult, but check with

Frankie Heilmeier | 21st Mortgage

Associate Business Development Manager

620 Market Street One Center Square | Knoxville, TN 37902

844-343-9384

There is a big difference with mobile home (HUD) homes and Manufactured homes that meet the
International Residential Code (IRC) building standard.  Manufactured IRC mod home sand are just like a stick built home.  They also don't have the same financing issues as HUD Mobile homes and can use conventional financing.  Many people say that the manufactured home are build better because they are build indoors in a controlled environment.  They are not getting rained on or snowed on during the building process and you can drug test your employees at the factory, vs. a job site contractor.  Below is a picture of a manufactured home, it was set on a foundation in one day, back in 2004.  Sold in 2017 for $490K $250/sq.ft.  

Here is a stick build "brick" home within just a couple blocks in the same neighborhood with a 3 car gar. that sold for $460K $247 cost per sq. ft. (5 months after the above home sold).   The brick house about 15% less Square ft., but the basement was finished, the Manufactured home had an unfinished basement. 

So I would say the manufactured home on owned land has kept it's value comparable with a stick build Brick house.

Condos in General are less work due to the fact that the outside of the building is usually taken care of by a common mgt. team.  However, they charge an HOA fee for that, and they don't spend your money like you would.  My Condo rental turns over more, than my single family rental (SFR) and I have a two bed two bath, which turn over less than 1/1's.  In general, you will cash flow more with a SFR even though you take care of roof, paint siding etc., but it may take a little more of your time.

I would never recommend you get into a rental that does not cash flow at least $300/mo. Even with that there are years you will just break even or even have a loss on a tenant turn over year. I just paid over 8K to put carpet, paint and other odds and ends in my Phoenix SFH. So don't get caught up like all the people in 2006-2007! Back then realtors and selling investors said the market is going up 7-10% a year, you don't need cash flow. All those investor's houses were in foreclosure in 2008.

Also watch those strictly cash flow markets, if the property never appreciates, it will NOT be the best investment in your portfolio!  You need a good combination and NOT buy at the top of a market.

@Holly Scott

Wondering how this worked out for you, Were you able to make the numbers work for yourselves or did you wholesale it?  I hope so!  Let us know.

Great Strategy!

I am getting a lot of requests for that as well, did you rent to them, were you able to get credit and background checks?

Please let us know.

Tony

Chris Chase

Chris Same sounds like my experience exactly, so maybe geographic.  I have not tried Nextdoor, did that get you good leads in the past?  I will try that now.  Thanks

I do get a lot of volume of leads from FB, but they are the poorest quality lead.  Of course that may be the location of the rental as well.  Just east off 225, 10 blocks north of Colfax.

I have had a 5 year tenant recently move out and in the past I have used Craigslist with good success, but I think I have only had a couple of leads from my ads on CL in the last month in Aurora Colorado a hot rental market, Close to Fitzsimons Anschutz medical campus .  I am also using TurboTenant, which places the ad in many locations like apartments.com, facebook, zumper etc., as well I placed the ad on Zillow.

Just thought I would ask if there are any other source your using, CL seems to have died.

Thanks,