All Forum Posts by: Patrick Howell

My wife and I are looking to acquire our 2nd investment property. We purchased our first investment property (rental) about a year ago with the goal of holding everything we acquire long term to supplement our retirement goals. We set a goal of acquiring one rental property a year and setting each one up on a 15 yr note, so that one property would become "free and clear" every year after we turned 40 (currently 25).

We have an opportunity to buy a second property for 10k (needs 11k in repairs) that comps for 40-50k. If we decided to rent this out, we would be able to leverage the equity in the property to purchase the next one and so on...... (set up a successive purchasing system). But the more and more I read about offering owner financing the more attractive it seems. I could very easily put this on a 15yr note at 8% with a purchase of 45k. That would roughly bring $430 a month for 15yrs totaling around 77k! Not to mention, this would free up the day to day headaches with tenants etc....

But, at the end of the day owner financing takes away the opportunity to leverage equity correct? (i.e. I wouldn't be able to get a line of credit on this property so I could move on to the next one...) Just wanted to hear everyone's thoughts.

Cheers, Patrick

thanks mike, that's a good way to put it. Could you suggest a good way to transfer a property from my personal name to the LLC?

Hello everyone,

I currently own 1 rental property free clear and have it set up in the name of my LLC. Initially, I planned on trying to leverage this equity to purchase future rental properties, but was thinking about trying to clean up my personal debt. Could I take out a mortgage on my existing rental property through the LLC then pay off my personal debt with it? (Basically loan money to myself from the LLC).

I've seen calculators before where you can enter all of your purchase info like acquistion price, rehab costs etc..., then you can play around with the numbers on financing to see what a lease option cash flow... Most of this software has been "pay to use" but was wondering if anyone here had suggestions

Could anyone point me in the direction of a good lease option calc? Preferably free. Thanks,

Hello Don,

My feeling is the same. Given the lower initial investment, MH's seem like a very reasonable way for an amateur investor to get started. How do the financing options differ compared to real property?

Thanks Jon,

That's basically what I was thinking.... I'm sure there are issues with trying to finance a mobile home vs. real property right?

What is everybody's thoughts on investing in mobile homes as rental properties for the long term? I live in a small college town and demand for rentals stays on the up and up. I understand that they would depreciate, but I don't see why healthy cash flow couldn't be maintained year to year if managed correctly?

hello jon,

i've heard reasonable cash flow comps for full care. what would be fair for just boarding and pasture access??? Right now I envisioned a small 5 stall barn on 15 acres. The stalls would have electric and water.

hello rentboy,

that is basically my plan.... It seems like a pretty sound idea for cash flow. I currently have one rental property and I would be willing to guess that leasing out horse stables would be less of a headache.