I have the opportunity to buy 2-$30k 1/2 acre lots that are currently renting out the spot to one mobile home each. The mobile home tenant pays $375 mo to land owner & the tenant pays for water, sewer, & electricity. All I would pay for is taxes. No renovations, no broken toilet calls, etc. my down payment is 10% & he would seller finance the rest.
VISION: to own land & hookups all over the US by finding raw land or distressed mobile home owners that may need a cash out on the land they own but can still pay 3-$400 mo to rent the land.
300 lots X $125 cash flow each= $37,500 mo after debt servicing & taxes
UPSIDE: NO RENOVATIONS, NO REPAIRS, LOW EVICTION RATES, GREAT NOI
DOWNSIDE: IS THIS EVEN SCALABLE? Is anyone out there doing this that could put me in contact with a lender?
@Nick Tureau . I really like this model and have been thinking about doing the same thing. I am currently doing a couple land flips (episode 39 of podcast) and have been wondering if it would be worth the time to put a mobile home pad on these lots that I can get for dirt cheap, and then rent the space as you said with less headache of traditional rental. I am also curious to see if anyone else out there is doing this and how it is working out for them. Thanks for posting!
@Josh Harren exactly man, like I said the main thing that I’m concerned about is will I be able to scale this business quickly with financing. The bank told me no because if I default on the loan, they may have an issue getting the tenant off. I’m sure there is another lender that would lend on this type of strategy, I just have to find them. I didn’t realize there was a land flip podcast on BiggerPockets. Thanks for letting me know! Also keep me updated and I’ll do the same so we can help each other out on this process