All Forum Posts by: Tripp Warren

Investment Info:

Mobile home buy & hold investment in Caldwell.

Purchase price: $25,000
Cash invested: $1,000

I used the HELOC I have on my personal residence to purchase a used mobile home for $25,000. I've put $23,000 worth of rehab (still using HELOC money). I've got $1000 of my cash in the deal. The house rents for $1,650/mo. and cash flows $650 each month.

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

I was having a hard time finding an SFH that would make sense for my numbers. So I "land-hacked" some space on my property that wasn't doing anything. Now it generates income!

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

Driving for $$'s. I passed the used mobile home every day and one day I saw a for sale sign on it. Called the number but it always went to voice mail. One day I drove by and the owners were at the property mowing!

How did you finance this deal?

Through my HELOC I had on my primary residence.

How did you add value to the deal?

I put $50K of rehab work into this used, dirty, outdated mobile home.

What was the outcome?

I purchased the home for $25K, I put $50K of rehab into it. It assessed for $78K and it generates $650 cash flow which I put 100% back into my HELOC.

Lessons learned? Challenges?

Contractors! Finding good ones that you don't have to go back and redo what they did. Have a clear scope of work before work is started. Inspection, Inspection, Inspection even if you know you're gonna do all the work.

Thanks @Stephen Keighery.

Hi All,

My brother in law had to move from Kenner Louisiana to Phoenix.  He still owns his home in Kenner and is considering renting it out. He needs to find a good property manager in Kenner/ New Orleans to manage the property long distance.  He's not a BP member so I'm trying to help him.

Are there any realtors or property managers in the Biggerpockets community that could point him in the right direction?

Thanks!

Hi All,

My brother in law had to move from Kenner Louisiana to Phoenix.  He still owns his home in Kenner and is considering renting it out. He needs to find a good property manager in Kenner/ New Orleans to manage the property long distance.  He's not a BP member so I'm trying to help him.

Are there any realtors or property managers in the Biggerpockets community that could point him in the right direction?

Thanks!

Hi all,  

I'm getting ready to go live with my very first rental. I want to set up a separate bank account to have rents deposited into. My question is; should I have multiple accounts to split rent revenues? What i mean is should I have an account for maintenance,  an account for deposits, an account for capital expenditures, and an account for net income? It seems like alot for the tax man to keep up with.  It's it better to just have one account that revenues go into and you keep up with everything on a spreadsheet?

I don't want to over complicate the process,  but I also don't want to be in a position to need a capital expenditure and it not be there.

Thanks!

Perfect! Not sure why I didn't think of that. Thanks so much!

Hi all,

My MIL is planning on retiring in the next year or so and will be moving to the Phoenix area. She owns her current home and I would love to purchase it seller financed for an investment when she gets ready to retire. We've started discussions back and forth about how it would work. She had a question that I have no idea how to answer and that I haven't heard on any Podcast or seen in the forums. That question is this:

"What happens to the loan if you (me; the buyer) should die?"

Not sure if she's plotting my death (just kidding). I'm in great health and don't immediately foresee anything happening but you never know. She's worried that the payments that I would make on the loan would stop, and she would then be financially burdened on the home that she would be buying/renting in Phoenix after retirement. She won't be getting a great deal of income from her 401K and I would predict that the mortgage amount that I would be paying her would only be about 50% of what she would need to live off of.

Is there some sort of insurance that she could get for that? Or does a transfer of deed on death seem the better option?

Looking for answers as I plan on seeking more Seller Finance deals.

Thanks in Advance!

I've contacted the owner and she claims to have no say in the process now. It was her mother's home (in which she lived also) and mom took out a lien without daughters knowledge. Mom died, so the bank came to collect and daughter couldn't pay. Daughters name on tax roll though.

If it technically hasn't foreclosed yet, wouldn't this be an opportune time to purchase? I'm wondering how much effort I should put in to try to get to bid.

I just thought I was being cheap! I paid for a "Rich Dad World" course (3 actually; a bundle) and once I got the course work, it was basically all the recordings of Kiyosaki that I had already watched on YouTube FOR FREE. 

In retrospect, the books were good buys. But those were like the hook to wanting to become a RE Investor. The real meat and potatoes is right here at Bigger Pockets for me at least. I've learned so much more for so much less. 

You have to give it to the man though. He's an entrepreneur for sure and knows how to make a dollar!

So the date on the bulletin posting is 2020. When I go to the Hud homestore.com site, there's no agent or broker listed (yet). As far as I can tell, nothing's happened in that time. Is there an "average" amount of time before it's listed? I'm wondering if I should move on and hope that buy the time it lists, I'll still be in a position to make a move on it.

Thanks for the response!