So, there's a piece of property with a little mobile home in the next city over that seems like it could be a wise investment, but I am new to all this so I was hoping for some experienced advice. The home is listed for $12,500 but it needs major repairs. The buyers agent I spoke with said I might be able to get in an offer of $6,000-$7,000 (offering cash, so no mortgage). I had my contractor join me on a walkthrough of the place and he estimated around $2,000 for materials in repairs. If my low ball offer is accepted, and I end up spending a total of $5-7,000 (adding in extra for labor and any surprises) on repairs, with an estimated monthly income of $650-700 in rent, and yearly taxes at around $1,000 I'm estimating I could make a pretty decent profit, according to my math it would pay itself off in less than 3 years. Its in a nicer part of the city, has a nice little backyard with a fence, and I feel like it would rent quickly in this area once we fix it up.
Does the purchase price include the land? What type of services does it have, City water and sewer? Well And septic? This could be a decent investment, but more info is needed. Good luck!
Yes the price does include the land, its hooked up to city sewer/water services. Heat is natural gas.
That sounds like a great deal. In my area it would take at least twice those numbers to get started. And the rents here are in the $600-$700 range as well.
Sounds pretty good to me if you can get that rent
I see payback little over a year. After that it's all profit.