Partner Proceed split?

Question

Considering investing in mobil home investment as rental. I plan on securing the loan from VA . Price looking for will be around $70k to $80k . I considering bringing in a partner to put up closing costs and perhaps putting up money for incidentals such as unforseen repairs and such. Tips, ideas, how to go about coming up witha fair split? I will be managing the rental.

Javier Ramzes · Answer

Thank you. It's the type of information I was seeking pertinent to what my plans are/were. Hidden in my inquiry was that exactly; VA loan and restrictions as far as type of home allowed to use it on. I'm looking into Mobil homes just as an idea in starting with something small. But I'm all ears for any general info. I obviously a veteran with VA home loan eligibility, I have real estate license (obviously just starting so not much experience) and reading a lot in these forums and trying to educate myself in this area. Any ideas, advise, links highly appreciated

Roger D Jones · Answer

Not sure you can use a VA loan to purchase a mobile home for a rental.  Certainly not in a park but maybe if has land attached with a foundation and you live in it first for several years.  As for an appropriate split I would keep it 50/50 that way you can both lose an equal amount of money every month.  Unless the home is new which your loan amount tends to indicate it is a used older home your loan principal and interest payments, insurance and home repairs will keep you on your back for the life of the investment.  There are no 'incidental' repairs in mobile homes- everything is unique, specialized and expensive.  Sorry to be a 'negative Nellie' but save your leverage for something better.