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Mobile Home Park Investing

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Sean Harris
  • New to Real Estate
  • Atascadero, CA
13
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90
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Creative financing to purchase mobile home park

Sean Harris
  • New to Real Estate
  • Atascadero, CA
Posted Sep 12 2019, 04:07

I'm looking to buy a mobile home park in the next year whether I partner up or buy this alone. I'm trying to think of ways to come up with the capital other than finding multiple investors to put down on the property. I would like my first park to either be just myself or with one partner. I have a friend who just closed on his first park last week in South Carolina, so it's good to see the processes that he is having to go through. For my situation I'm seeing a few options to get the money but I'm not sure what is best. I'm trying to leverage what I currently have to create passive income.

Option one:

Use the current HELOC I have on my primary residence of 100k to fund a downpayment on one and then use the cash flow to pay down the HELOC. Yes I am aware that rates can fluctuate and many people say only to use this for short term but I also know lots of people who have used this strategy for long term with success, just slightly riskier I guess.

Option two:

Get a cash out refi on my primary house which I could get somewhere between 120k-140k and use this money to fund the downpayment and other associated costs.

Option three:

Use a combination of either option one or option two PLUS pull some money out of my 401k to aid in a larger downpayment.

Any advice will be greatly appreciated. I'm open to any suggestion you have. I obviously would factor in all my monthly payments on the money used plus the mortgaged amount and factor that in to make sure I'm positive cash flow still. I'm just trying to utilize the power of leverage to become financially free one day and i want to make sure whichever path I choose is the smartest way in my position. Thanks y'all

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