All Forum Posts by: Janene Tompkins

I am interested in that info too.

Depending on the state law, the buyer may have 3 business days to back out of a contract. Sounds like you are beyond that. I would check with an attorney. Since a mobile home is chattel and not real estate, this transaction will probably be treated like the sale of a vehicle. I’m no attorney, but it sounds like the buyer has no leg to stand on in backing out.

Yes I do! Let’s chat!

@Justin Tahilramani thanks for clarifying!

Is your deal just for the home or is land included? If land is included and the home is on a permanent foundation, it becomes a real estate transaction and not considered chattel property. Then the home has a better chance to retain its value. And may even appreciate b/c of the dirt underneath it.

The difference between what you buy an asset for and what you sell it for is a capital gain. Whether it is taxes and ordinary income rates or lower capital gains rates depends on how long you own the asset before you sell it. Less than 1 year, the gain is taxed as income. Own it 366 days or longer, any gain is taxed as capital gains. Check with your tax advisor for your particular situation.

Hi Richard, I am in Durham, NC! There is an active REIA group here and we have Durham meetings. Also happy to grab coffee with you if you find yourself in Chapel Hill and can round up a couple of other RE investors too. I'd love to hear about your Durham purchase!

I would avoid withdrawing from your 401k if at all possible due to the tax implications. If you are under 59 1/2, you will pay taxes and a 10% penalty on the withdrawal. You may be able to take a loan from your 401k, that would need to be paid back within 5 years. For what it is worth, I used a HELOC To buy my first MHP.

Ask the seller for copies of the utility bills. I have to keep those for my CPA. They would have bills for well testing, electricity for the pump, septic maintenance, they may pay for garbage pick up. I would ask for copies of the bills to cross check with the tax return. They may have been putting CapEx in the utility bill to deduct it from their taxes rather than amoritize the expense.

Mobilehomeparkstore.com is a good place to advertise it. If it’s in NC, I might be interested in buying it.