All Forum Posts by: John Fedro

Hi Brian and group,

The homes sound quite nice and newer at 1998 and later models. The concern in our opinion is the cost. Even purchasing at $20,000-$24,000 you will not make your money back for 2.5+ years. I always aim to make all my invested capital back in less than 12 months, if I'm paying with all cash versus seller carry back.

I know your area well and can tell you those are about retail prices. Additionally many parks will not allow renting in their parks, but you may already know this fact.

Are you considering renting these homes? Renting leads to filing your homes with renters, with renter's mentalities. Renters do not take care of a mobile home like an owner will. With that said mobile homes can be damaged quickly so it is important to stay on top of your homes and renters if you decide to rent.

To answer your other questions 1. they do depreciate tax-wise like SFRs. 2. There is a Blue Book value to these homes but unless you are getting in appraised or refinanced this value is unimportant as an investor. 3. Insurance runs approx $40-$70 per month.

Hope this helps and keep us posted on how you decide to move forward.

Best,
John Fedro

Hi Val,

Great comments and advice from Sam Parkins!! I don't think I could say it better myself. So I'll make other comments...

In order to make sure you look at all the sides my comments and questions are to ask if this property is in MS and you are in CO? If this is the case and you plan to rent the mobile home you will want a vested party there on the ground to manage the home. Renters depreciate mobile homes more than you know, versus someone that you sell the home to and collect payments.

Do you know this area of MS? It is ideal to understand everywhere you own a home.

The $5,000 land and $29,000 mobile home does not sound like that good of a deal either. Great "deals" are made routinely by investors and motivated sellers in every area of the country weekly or daily. Obviously I have no clue of the land area you refer to in MS, perhaps it's worth $50,000 and you can get it for $5,000. Likely though there is a reason the land is $5,000, and that's because it is worth $5,000.

The last thing I am aiming to do is discourage a good deal. However I do want you to know that if it is cash-flow you are looking for you can find it in your own area and don't need to go 1000+ miles away.

If the property is local and I misread then disregard my advice and proceed cautiously. Also, is this sale from a private seller or bank or other?

Please keep us updated on your success and we hope you make a ton of money!

Best,
John Fedro

ha! Well it's never too late!

Hi BP members!

More motivated seller leads are coming in from my website. This time the location is Denver, CO.

I have leads for individual mobile homes located inside parks. If you would like more info on these leads please email me. I am not assigning these leads - simply passing along the good karma in hopes everyone profits.

Various mobile homes in all shapes and sizes. Homes can be moved or stay. Again this ad is for Denver only.

Best,
John Fedro

Hi Jamey,

The words of everyone here are spot on with regards to due diligence, planning, zoning, and CYA. The question I have is why this deal to get back into the real estate game? What is your end goal (experience, cash-flow, appreciation, other)?

The reason I ask is to determine if your time, money, and other limited resources are not better used for another more instantly gratifying mobile home "deal". I know other MH investing folks in your state that are in vesting in less complex transactions while learning and making money.

Also, forgive my mis-understanding but is there a usable mobile home on this land? Can you add more than one?

John

Right on! This is good stuff Rachel. Thanks for keeping us posted.

Best,
John Fedro

Hello,

I am receiving more and more leads form my website. This time the seller is asking $8,000 for a newer model 2/2 mobile home.

Please message me if you would like the seller's info on this mobile home for sale in a family park. I have not contacted the seller yet and only have limited info on this home. The seller does sound motivated though.

Best,
John Fedro

Hello,

I have received a mobile home lead from my website. Asking price from park owner [seller] is less than $3,000. Home needs carpet, paint, and cabinets. Home was built in 1980 and has 3 bedrooms and 2 bathrooms. Size of the home is 16X72.

Please let me know if you are interested in a singlewide mobile home inside a nice park in the 81212 zip code. Please comment below and I will send you info on the raw lead.

Or email me at [email protected]

Best,
John Fedro

Hi David,

Your idea is solid from what you have mentioned. A few things to consider are:

1. When you rent mobile homes you will attract renters that may damage your home if you do not watch them closely. So when renting get into the habit of spraying the home monthly for bugs or inspecting monthly to make sure the home is being taken care of 100%.

2. While working on your first investment home be on the look out for your next purchase. You will likely rent your place quickly if in good condition so be ready to move to the next one.

3. Many parks will not allow renting (only reselling) so be aware of this in your area.

4. Another exit strategy besides renting may be to sell with conventional bank financing through a hand-full of national or local lenders OR accept payments yourself.

5. Like I tell everyone I help. If you are paying call cash for the home and making repairs AIM to receive all your invested capital out within 12 months. Sure you can do a deal where it takes 2 years or more to get your money back but aim for the ones where you'll get your money back out in 12 months.

Keep us up to date with your progress. Thanks Brandon Turner for the shout out. Always happy to help.

Best,
John Fedro

Congratulations Shannon!!!! This sounds like this was a well thought out and strategic decision. Some of us simply work better when it is for ourselves, instead of a 9-5 boss. I look forward to meeting you around town.

Best,
John :)