Snagged a new deal today!

[Dave Rav]

Hot off the press today!  Got a verbal offer secured on a this mobile on land.

4BR 1996 double wide on a half acre.  

Needs about $14k in work.  

PP $57k with seller assist of $1750.  I originally tried to get Seller to finance 30%, but they wouldnt go for it.  I also tried to get seller to perform all kitchen repairs and again they said "no".  They just want out.  So, I lowered my price and they countered me a few thousand more at 57k.  An extra on this one is there are probably $1000+ in const material at the property.  

ARV: $72-74k**

**Some say this isn't a real deal given the ARV. My ARV calc is very stringent. If I open up my radius, its closer to $90k. For my strategy, the beauty here is the rent it will command. I will easily be able to rent for $1100-1200/mo. Additionally, if I lease option this home the contract value approaches $100k, possibly more.

This same deal as a 4 BR stick built house on a half acre in that area would run $175-225k - the beauty of MHs!

My strategy is the BRRRR method. Will buy using a biz LOC, then refinance at 80% (or more if i can get it!). This property meets the quick analysis 2% rule for sure, approximate DSCR is 1.25-1.32.

All questions and comments or criticisms are welcome!

[Jason D.]

I'm not familiar with MH investing, but is the value here in the land? I see 20 year old MHs going for $10k - $15k around me, without land. My big question, because I have interest in how they can cash flow, is what kind of permanent financing can you get for a MH? I'm assuming 30 year notes are out of the question, am I wrong in that assumption? It's a space I'd like to get into, but that is my big road block.