All Forum Posts by: Vega F.

Hi everyone,

I'm back after cleaning the mobile home unit I posted about a few weeks ago. After further inspection and a bit of number crunching, I have decided to completely demolish the existing unit. Now, that leaves me with a few options:

1. Buy a used mobile home and set it up on the property

• Cost: ~$30k -
  10% down = $3000
  Lifespan: 15 years
  Monthly Rent: $550

2. Buy a new mobile home

    Cost: ~$60k
   10% down = $6000 down
  Lifespan = 30 years 
  Monthly Rent: $800

3. Hire a GC to build a new home
  Cost: ~$120k
 20% down = $24k
  Lifespan: ~80 years or more?
Monthly rent: $950

Running the numbers is the easy part - If I want to cash flow as quickly as possible with as little money out of my pocket, it makes sense to purchase the used mobile home. However, my family has 15+ rentals with most of which are mobile homes. For as long as I can remember, there have been issues with shifty tenants failing to pay rent, random components of the homes breaking on a regular basis, which is accompanied by a sense of unease.

There is also the undeniable truth that mobile homes quickly depreciate, offsetting any positive cashflow over the course of the home's lifespan, when in another 15 years I have to purchase another mobile home to replace the decrepit replacement.


This is where I question what makes the most sense: immediate cash flow or investing in an asset (a solid construction home) that will only grow in value.

Thank you for your input and help!

I appreciate the input from everyone! I’m going to scale the initial clean down to a disinfectant job then do the rest ourselves. 

Thank you!

Great question - The first cleaning company that came to quote the property told me it was the worst they had ever seen and after talking with the office manager, said the job would be out of their scope of work.

The second company that came out also said it was the worst unit they had ever seen, but were happy to take the job. 

A tenant who leased her unit for over ten years recently passed away - the unit is in horrid condition. By horrid I mean that one of the extra bedrooms served as a puppy pen and now has a foot or two of poop on top of carpet and ripped pillows. The poop has since been strewn throughout the house.

Now, I am eager to get started on renovating this property but before I do, I felt it necessary to hire a professional cleaning company with the goal of making the unit a safe working space. 

My mom, who has owned rental properties of her own for 20+ years, says paying a cleaning company is a waste of money given the scope of work on the rehab. 

What are your thoughts? Would you professionally clean the unit before stepping in it?

Hello,

I'm in the Auburn-Opelika area looking to connect with investors near and far to learn more about investing in real-estate across the board: How you do it, why you do it, and what successes and failures you have encountered along the journey.

 I currently own three SFRs and am looking to expand into duplexes, triplexes, and quadplexes moving forward. 

Let's connect and learn! 
Vega

I see - thank you so much for the clarification. 

Hey!

So this property is full paid off - there is nothing to refinance. 

Hi all - 

I recently inherited a property as a loved one passed away.

I have the option to rent for $800-900 per month, or sale for a lump sum of $60-80k, before taxes.

What factors should I consider going into this?

Thank you