If you were me, would you consider purchasing this? To me seems like a cash flowing opportunity in a HCOL area I otherwise cant buy in because price of entry is higher than a mortgage amount I can qualify for or the numbers don't work - the caveat is its an older mobile home not a true 'house'.
Property details: 3B/2BA vacant Foreclosed modular home (built in 1978) on land (NOT in park with lot fees). Home is apparently in rough shape and needs repairs but the pictures don't make it look like an 100% overhaul is needed or unlivable.
Location- Durango, CO - somewhat HCOL area with solid rents and good census data showing growth in the town. I live locally and am currently house hacking. Property is located 15 minutes outside of town in a subdivision with a mix of homeowners and renters
Offer price- $96,000-105,000 (need to see the property and run more recent sales comps - tomorrow)
Additional $8,500 for tap fee needed and estimated 5,000-10,000 for repairs/maintenance to get it rent ready
All in say $118,000
It would rent for $1,300-$1,500 a month
HOA $166 a mo (includes water and sewer and it is usual that landlords have renters pay all utilities here)
I have the cash to put 20-25% down. The property needs to be loaned via an in house bank loan or a 203K loan. I don't know if I'll quality/what interest rate will be since I haven't worked with the bank but I have pre-qualified before for $100,000 loans- not much more.
I'm really wanting to enter the RE world and have been saving for a downpayment. Always thought I'd need to invest out of state due to the prices here. 1 factor holding me back are that I can't qualify for a loan very large due to my income situation. I understand this property wouldn't appreciate like other real estate likely will in CO (speculation) but as a buy and hold cash flow property with some forced appreciation, is starting off with this older mobile home a god/bad way to launch? Things to think about? Watch out for?
Thanks for reading the novel!