Hello, I am eyeing up a property that appears to be an excellent idea, and I am looking for some advice. I have never invested in any property before and am completely new to all of this.
The property is a 1995 doublewhide on .25 acre, located in a trailer park but you own the land. The list price is $29,900. The county assesed value is $80,000. I would think that I could rent this property for 700-800 per month.
To me that looks like an excellent deal. It seems I would have $50k plus equity from the start.
Homeowner · Burleson, TX · Member since 2008 · 756 posts · 376 votes
16y
Welcome to BP Amanda. Lots of questions that still have to be answered here.
What part of the country are you in? What is the competition, lots of for rent signs everywhere? Does the price include the land? Who pays utilities? Why do you think it is worth $80,000 beyond the tax A/C? Are you paying cash? Taxes? Insurance? Deferred maintenance?
I am sure others will chime in but here's my thing. I haven't seen many manufactured homes that increase in value like a site built house. Most MH';s I have seen lose value a lot.
Homeowner · Burleson, TX · Member since 2008 · 756 posts · 376 votes
16y
Welcome to BP Amanda. Lots of questions that still have to be answered here.
What part of the country are you in? What is the competition, lots of for rent signs everywhere? Does the price include the land? Who pays utilities? Why do you think it is worth $80,000 beyond the tax A/C? Are you paying cash? Taxes? Insurance? Deferred maintenance?
I am sure others will chime in but here's my thing. I haven't seen many manufactured homes that increase in value like a site built house. Most MH';s I have seen lose value a lot.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
16y
In my experience, I've learned that a good deal can mean so many things. A good deal for me may not be a good deal to someone else. And, vice versa.
I would say it all depends on your comfort level, goals and exit strategy.
For me personally, I've learned to look beyond the numbers. If I'm going to pursue a deal, the number one factor now for me is the neighborhood. It has to be in an area with demand. If not, it's going to be hard for me to market to the type of clientele I feel comfortable working with. But, that's just me. It's different for everyone else.
I'm sure there will be others here (like Greg) who will give you some different perspectives. Hope that helps!
Homeowner · Burleson, TX · Member since 2008 · 756 posts · 376 votes
16y
It's good to hear from you Rachel. We have had this conversation before and totally agree. Amanda, it may be a deal for you and do for you what you need it to. It may not fit in my business model. If you would like more input we'll be glad to provide it. Good luck.