I've been looking at properties all around the Denver/Boulder area trying to find a cheap place to start a long term buy & hold strategy, and one sticks out. It's been on the market since at least early August, it's gone down in price $6500. By the 2% and 50% rules, this thing seems like a great buy. It should cash flow immediately. But there it sits, unbought. What am I overlooking, why isn't anybody touching this thing?
Sometimes things go under the radar. This one looks like a manufactured home though (is it on its own land or is it in a park?). Those generally go for quite a bit less and don't appreciate very well.
Dylan, I did some research on the MLS and came up with a good reason it has not sold. It currently has a lot rent of $600/month, this drastically changes the 2% rule. As @Andrew Syrios said it is a manufactured home and is located in a Mobile Home park, therefore you only own the home, no land. Hope his is helpful. If you'd like PM me your email and I can send you the listing straight from Metrolist. Cheers!
Stuart Birdsong, Twin Pines Investment Group LLC | 9706726282
@Dylan Wright also you need to check with teh park owner and make sure you could indeed rent it out.. the play is to own the MHP not the mobiles :) MHP are a pain to keep maintained as parts are not right off the shelf in many cases
Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222
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