Mobile Home/Land Package Owner Financing
Hello all,
I'm new to BiggerPockets and have been dabbling in real estate investing for about 10 years now. I was in the military so I was not able to commit a whole lot of time into it; however, in the past 10 years, I acquired 6 rental properties. 4 mobile homes on land and 2 regular SFH on land. I only have 1 small mortgage for one of these properties. Rents are
SFH on .75 acres: $920 (3/2)
SFH on .75 acres: $920 (3/2)
Mobile Home 1 on .5 acres: $700 (2/1 - purchased and rehabbed for total of $17K)
Mobile Home 2 on .5 acres: $700 (2/1 - purchased and rehabbed for total of $21K)
Mobile Home 3: Bought for $32K, rented out for a couple of years at $900, then sold last year for $79K.
Mobile Home 4: Details below:
I purchased a 1600 sqft mobile home (year 2000) on a 1.68 acre lot for $25K cash about 3.5 years ago, free and clear. I put about $5K into it and rented it out for the last 3 years for $900 a month, to the same tenants. Unfortunately, those tenants completely tore it up and left. The only good thing, is that the tenants paid about $30K in rents over those 3 years. I recently remodeled it and put about $15K into it. I've recently been approached by several families interested in purchasing this property. The only thing is that they are all looking for owner financing. I've never owner financed any of my properties, however, owner financing sounds appealing to me for several reasons.
1. Mobile homes depreciate over time.
2. Mobile home financing is becoming more difficult.
3. I put a lot of money into getting this property back into shape.
4. I wouldn't have to worry about managing this property.
5. If the buyer failed to pay, I could take the property back through foreclosure.
I have a current offer from a couple with credit scores in the low 700s.
Purchase Price: $87K
Down Payment: $10K Cash
Terms: I finance the remaining $77K for 15 Years @ 8% Interest
Total Interest: $55,453.38
Buyer pays me $735.85 monthly for 15 years.
For those of you that have owner financing (mobile home) experience, would love to get your thoughts/feedback on this potential owner financing deal?
Thanks
Dan