Buy and Hold turned Fix and Flip!
Investment Info:
Mobile home fix & flip investment in Bend.
Purchase price: $165,000
Cash invested: $25,000
We found this property off market. The original plan was to remodel the unit and get a renter settled. Then we would go to work converting the detached 500sq. ft. garage into an ADU. Once the remodel was finished the market went nuts and we realized that we could make a quick sale and reinvest the profits in a market that would get us more bang for our buck. We're currently looking at a small mobile home park!
What made you interested in investing in this type of deal?
I heard a bigger pockets podcast about flipping manufactured homes and really wasn't very interested in the idea. Almost immediately after, our seller called us and asked what we thought his home was worth. I went to meet with him and the wheels started turning once I saw the property in person.
How did you find this deal and how did you negotiate it?
This seller called us back after receiving a hand written letter. He expressed that he had been falling behind financial and that he wanted to relocate to a warmer climate. I worked with him to get a better understanding of his situation and structured a win win deal. We paid his outstanding balances and half of the agreed upon cash offer at closing and he continued to live in the home for one month while he found his new forever home. When he moved, we gave him a check for the balance!
How did you finance this deal?
I found an equity partner who I will be doing many more deals with.
How did you add value to the deal?
We installed a new roof, new flooring, lighting and plumbing fixtures, resurfaced countertops and painted the walls and cabinets.
What was the outcome?
A beautiful home on a half acre in Bend, Or proper! We have it under contract for $285,000
Lessons learned? Challenges?
Get your permits! I made the mistake of not getting a permit for the new roof. I should have known better, and now I have an extra headache to deal with before COE.
