Creating passive income through renting

10 Replies

I am a 32 yr old male with a objective to increase income through real estate. I made a offer on my first deal and it was agreed on. Small single family home on 1/2 acre piece of property. Projecting 250$-300$ cash flow. I asked myself , How can I maximize this property? After reviewing the property I decided I will strive to purchase a mobile home, install on property, and rent it also. I believe this will maximize without jeopardizing the other rental for my area. Thoughts? Ideas?

@Chris Gass

It depends on your area.  First is this allowed through the city or county. 

@Dennis M. brings up a good point.  Will this diminish the value of your property.  Cash flow looks good.  If a second structure is allowed you might want to consider a modular home.  It’s quick and doesn’t have the negative stigma that comes with a mobile home.

Good Luck.

@Kenneth Garrett in country no restrictions. Many others in the area live in mobile homes. The property isn’t garbage but nor is it high life. “Cute” country home in rural area just outside busy city in good school district. Not a high supply of quality rentals but demand is there.

@Chris Gass

Sounds like you are good to go to maximize your cash flow.  Remember the cost for connecting water/sewer or maybe in your area it is well and septic.

Great job.

@Kenneth Garrett

Yessir! City water but septic tank. I was told the attachment piping is in place for second use of septic tank. I just need some direction on how I confirm the septic system is adequate for both structures.

Check with your local health department to confirm the septic capacity.  Usually based on the number of bedrooms at least in my area.

@Chris Gass I have a SFR in a small town of 1000 people. When I bought the house it came with 2 lots. One lot the house was on and another 25' wide lot right next to it. Town is about 65/35 houses to mobiles. I bought a $3500 mobile home that was in great shape, paid 500 to get my electric pole set up and 45 to get them to put a tap in for water. They let me tie into the city sewage line myself lol. Just signed a lease for $530 a month on the mobile. House rents for well over 700 a month too. In my situation it's working out great
@Chris Gass Another thing to note about the value of the house. If you already have long term financeing in place the value doesn't matter until you go to sell it. When that time comes you sell the mobile home first to get it off the land then sell the house.