REFI/Finance MHP question

9 Replies

Sorry if this is tedious but wanted to lay everything out that may be pertinent. 

Bought a MHP back in December. Made money on the purchase as we bought it for the appraisal of the land only. The previous owner only collected cash so no proof of income. (His bad) Day one we were netting over 2.5k/month after all bills, including notes, taxes and insurance. Since then, we have increased rents by adding new homes (2) and renting vacant lots. We only have 2 left and its a waiting list for those. (we have to get the 2 old dogs of trailers out of there first) We can literally pick the ones we want for the spot. Our company is very efficient. We bought for 240k and now with a 10 cap rate it is worth over 750k 3 months later. That brings me to my question. 

We found another one we want. We can refi, pay off liens and use the proceeds for the down on the next one. My figures have the one park paying off the note just barely. the new park will pay off easily the other note or both with ease.  With both parks income we will be aces. Is this the way I should do this or should I use the first park as collateral and just do both parks in one loan? My thought is less headache with one loan but what else am I missing? Would it be better to just have 2 loans. 

Hey @Mike Reynolds  Those are some amazing numbers on your MHP congrats! I think I would just do a refi on your current MHP. Then have a separate mortgage for the new park. I feel like this will give you more flexibility options in the future. You are likley to refi this next MHP once you bump it's value. If you have the two parks in a bundle you would likley pay more fees on that future transaction.

Good post.  Which financial institution is doing your refi/financing?  We have a smaller MHP here in SC and are looking to do a refi.  Thanks!

Originally posted by @Jason Shackleton :

Hey @Mike Reynolds Those are some amazing numbers on your MHP congrats! I think I would just do a refi on your current MHP. Then have a separate mortgage for the new park. I feel like this will give you more flexibility options in the future. You are likley to refi this next MHP once you bump it's value. If you have the two parks in a bundle you would likley pay more fees on that future transaction.

Hadn't thought of that so thanks. That makes the most sense. 

 

Originally posted by @Dave Rav :

Good post.  Which financial institution is doing your refi/financing?  We have a smaller MHP here in SC and are looking to do a refi.  Thanks!

 We haven't gone that far yet but a local bank did the original loan. We may use a broker or not sure who we will use on the other. We dont have the other park under contract yet and haven't heard from our realtor yet. 

Got it.  Yes, for the refi we may end up using the same bank that currently holds the note.  Just been having a lot of trouble finding an institution to loan on an MHP, and with competitive terms.

Happy to help at @Mike Reynolds If you end up needing another quote on your MHP refinance or purchase let me know. I know a lender that lends on these. Won't be better than a bank rate but can likley move quicker. 

Hey @Dave Rav you are likely best to use the bank you are at now for a MHP refinance. As you mentioned, yes it is difficult to find these lenders. I only know one lender that lends on these.

Originally posted by @Jason Shackleton :

Happy to help at @Mike Reynolds If you end up needing another quote on your MHP refinance or purchase let me know. I know a lender that lends on these. Won't be better than a bank rate but can likley move quicker. 

Hey @Dave Rav you are likely best to use the bank you are at now for a MHP refinance. As you mentioned, yes it is difficult to find these lenders. I only know one lender that lends on these.

 Do you lend in Arkansas?