Seems like a good first mobile home deal - is it?

Question

2017 single wide, I haven’t ran the NADA on it to see the actual value. It’s 1 mile away in a nice community.CLEAN.

Price: $36,500

AVG RENT: $1,450

-LOT RENT: $500

-LOAN:         $573 (10yr term)

—————————-

= MONTHLY CASH FLOW $377

I’d need $7,500 down.

Am I trippin’ ? What am I missing?

Justin Tahilramani · Answer

Well - thats a FEMA unit. Based on what I can see its a 3/2. They typically sell for around 18,000 at auction. Takes another $8 - 10k to get them moved, blocked, tied down, underpinned, etc. Guys is probably marking it up 8- 10k plus lot rent in my opinion.

Justin Tahilramani · Answer

Yes - we put them on land we own.

Sergio Rios · Answer

So I ran a test FB post for rent in my area @ $1,450 and no one flinched at my terms. Lol

Had a few leads come in for this test I did. Basically just found a few pics of a similar house just different color.

Kinda cool update, visited the park and the manager and she said as long as it’s in my name and they pass a screening we were good, she also gave me a report that showed what I could expect for rent. Apparently it’s average is $1293. Which I’m cool with but will probably ask for more.

Lot rent is a few $$$s cheaper than expected.

Daniel Ryu · Answer

@Sergio Rios

• Have you check Craigslist / Facebook market place for other listings / comps?
• Also you could try running a test ad?
• 
• As a rental, what are you factoring for other expenses?

@Justin Tahilramani

• Is your strategy to buy and rent MHs that are on its own land? Permanently affixed?

Justin Tahilramani · Answer

@Sergio Rios - I personally wouldn’t touch that place if it were in a park.

Sergio Rios · Answer

So this is gonna stay in the park. Does that change your opinion on it any?

Yeah I think it is a fema house.

Rachel H. · Answer

@Sergio Rios You'll also have to figure in turn around time and any vacancy you'll have while marketing the unit. If it's something you feel comfortable buying and you're confident about the market including the numbers, it's worth looking into. Good luck!

Chris Pellicone · Answer

Repair and maintenance

Taxes

Seems like a good first mobile home deal - is it?

Seems like a good first mobile home deal - is it?

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