My dad's first rental

[Tyler Sanford]

Hello all!

My dad purchased his first rental property this year. He has helped my grandpa with his rentals over the years(5 sfh's, 1 commercial rental) and decided he would like to start working on buying some for himself. I have followed along closely because I would love to start investing in real estate. We had it rented before closing on the property. A 25+ year employee of our family business moved in and plans on staying. Everything went pretty smoothly and he has been living in it for around 3 months now.

The property is a single wide on 5 acres. 3 bedroom/2 bath. Paid for with cash, no financing.

Here are the numbers:

purchase price + repairs = 48,600

weekly rent of $160 * 52 weeks = 8,320

insurance + property taxes = ~1000

[David Tipton]

Originally posted by @Tyler Sanford:

@David Tipton I haven't found anything else in our small town that worked out this good, but that seems to be because it is hard to buy anything in that price range (~$50k). Most sfh's would be around $120k and only rent for ~$750. 

 Yeah seems like it should cash flow.  I was just listening to podcast 59 with Paul Tschetter who is out of Washington state.  Part of his strategy is purchasing vacant land and putting manufactured homes on site.  If the land out there is cheap enough, it might work out where you are too.  I'd give it a listen if you haven't yet, may give you some ideas.