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Mobile Home Park Investing

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Abad Marroquin
Pro Member
  • Chatsworth, GA
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Property under contract banks don't want to finance it.

Abad Marroquin
Pro Member
  • Chatsworth, GA
Posted Feb 10 2017, 18:09

A 79 Yearl old house 3/1 remodeled 2 year ago is for sale including 3 single wide mobile homes on same lot all occupied. House rents for $650/mo and singles rent for $100/week. Owner pays water. The asking price is $109K. Banks don’t want to finance this deal because of the mobile homes in the property. I thought It would be a plus because the mobile homes are producing, but apparently for banks it’s not. There is one bank that I just applied and might finance it at 5% interest with a balloon in 5 years. I am not familiar with this kind of loans. Numbers so far look as follows.

Purchase price 109K (home inspector scheduled to inspect it)

Total monthly rent $1950

Property Taxes $57

Insurance $70?

Water $120

P. Mngt $195

Cap Ex. $200

Vacancy $100 (5%)

Maintenance/repair $200

Mortgage Pmt $580

Cash flow about $514 monthly. 

So far the numbers are not looking too god. I might place a cash offer much lower since banks don't want to finance it. A number that would at least give a 15% ROI. Please I need your opinion on this deal.

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