Updated almost 5 years ago on .
Looking For Options/Ideas To Buy Out Partner
Hi everyone. I have a new situation that I would like to throw out to the public to see what options could work or connections I could make to move this forward.
We've have had this 10 acres for 3.5 years now and we have put past rental income back into property to increase rental income. Everything is working amazing now and projected to net $60k in 2021, and increase. My partner wants out and the option to buy her out is on the table. I need a none conforming loan in order to buy out private loan and partners equity, the reason why is because the mobile home pre-date the Fannie Mae loan requirements set in 1976. They are all in great condition now.
Info:
Land and Rental Income: 10 acres, 7 acres water rights, 4 income making mobile homes totaling $6700 month.
Active Loan to buy out: $600,000, plus half equity to buy of Parnters half.
Property Value: Around 1 million. Appraisal being done will determine exact value.
Expenses: Utilities, Prop Tax, Irrigation, Maintenance, Insurance, repair = Total: $20,000 yr
Rental vacancy rate: around 1%
Rental Income from mobile homes: Double wide 1440 ft - 1969 - $1700 monthly, Double wide - 1140 ft - 1967 - $1700 monthly, Single wide - 765 ft - 1962 - $1400 monthly, Double wide - 1440 ft - 1973 - $1900 monthly = Total - $80,400 yr
Net: $60,000
Vacancy Rate: 1%
End Game: Distribution %5 ROI. When land becomes residential in 10-15 yrs. Parcel, develop and divy lump sum to investors. Land will also be used for honey productions, possible hemp farming, with a completed covid friendly wedding and retreat area ready for 2021 which I am open to involving investors in also.
Love to hear ideas.