Accidental Cash Flow

[April Paytes]

Investment Info:

Mobile home buy & hold investment.

Single wide mobile home with 2 bedrooms and 1 bath

What made you interested in investing in this type of deal?

I wasn't interested at the time, we didn't even know it was part of the property when we bought it.

How did you find this deal and how did you negotiate it?

This is a 30 acre farm, it has our home and this single wide on it. It was owned by a friend of mine and for years I tried to get him to sell it to me but he had lived here for 25 years and had it paid off so he wasn't budging. I told him if he ever wanted to sell it to let me know. He ended up falling behind on his payments and taxes and was about ready to loose everything...... That's when he called!

How did you finance this deal?

We seller financed for an above market price but with no interest or points, just a straight sales price and set payment for 20 years.

What was the outcome?

We had our dream house, a single wide we were able to rent out for a cash flow of $450 and 11 acres of tillable farm land that provided an additional cash flow of $1200 a year.

Lessons learned? Challenges?

There was someone living in the trailer when we bought it, no lease in place, not paying rent, destroying the place and to top it off, they had 7 people living in a small 2 bedroom.....they had to go! So the biggest challenge was evicting them, they didn't believe that we owned it, they tried to have our water and electric shut off, we served them notice, took them to court, got them out and won a judgement of $1500 all within the first 2 months of purchase.