I’m trying to replace my W-2 income with real estate. I currently own several smaller rentals and now I have a deal that may help me reach my goal, but it’s not what I had in mind when I started out. It is a mix of multifamily and mobile homes on one large parcel. It’s a big investment for me and while I am definitely a cash flow investor, I still want appreciation and mobile homes don’t seem to fit the bill. This is an extremely well kept property, so no concerns there. Has anyone changed up their criteria slightly if they come across a deal? Do I modify my expectations? Does it matter, as long as it cash flows? My intention is to hold forever, but what if I want to refi?
@Gretchen Parlier what kind of buildings are the multi-family units? How big is the property? In my area mobiles attached to land have appreciated some over the last ten years but I would assume that it’s mostly land appreciation. I’m facing a similar situation about whether I should go down the mobile home route. I know some people have done well with them. Cash flow is cash flow, but dependable appreciation is awesome too 🤷♂️
My original plan was to scale up from my current assortment of duplexes and quads to a larger complex of 10+ units in 1 or 2 buildings. Besides appreciation, I'm concerned about higher maintenance for multiple trailers. And going through the process of converting this to a tenant owned home park. I know it's not rocket science, but am I buying myself a job?
@Gretchen Parlier Congrats on finding this potential deal and having other properties under your belt!
What is your why in investing in real estate? You say you want to replace your W2 income, but for what purpose? How much cash flow do you need to replace your cash flow?
It looks like a real opportunity you have with this property. Have you thought about how you would manage the multifamily piece? Have you considered hiring property management to manage the property for you? For what you pay for in PM fees, it may save you the headache managing everything and you will get to enjoy the cash flow you want. Just make sure to run the numbers thoroughly and conservatively to account for hidden expenses.
@Gretchen Parlier If the mobile homes on the property don't work for you, you may want to look into selling them off individually to someone with some land or lots to put them on. Good luck with the deal!
Can you split the land and sell off the mobile home portion?
@Gretchen Parlier Sounds like an interesting property... If it has the infrastructure (plumbing, electrical etc.) to hold mobile homes that’s awesome! What if you fix and flipped the mobile homes? You could offer seller financing and charge rent for the new owners who will most likely want to keep the mobile home on your lot if it’s nice enough. That way your getting rid of a depreciating asset (the mobile home) but creating two income streams for each mobile home: lot rent and a mortgage payment!
@Gretchen Parlier We have 3 small parks like this. It takes a lot of work to manage but we have a couple of assistants who manage these properties for us. This would be something we would buy in our area.