I have a lead I am working that seems like a deal, it's not a home run by any means, but its so close to being a deal. Here are the general specifics:

• 2001 double wide sitting one 1.5 ac with county water supply
• 2128 SF 5 bed/2 bath, it's in good shape for the age
• Recent roof, new HVAC, new paint throughout, fresh appliances installed
• Needs flooring in three rooms, a window replaced and some exterior clean up, call that $10k
• Seller is tired landlord, needs cash to complete another project, don't think he has the cash to finish this one although he has not said that
• Google drive link to comparables support a very conservative $200k ARV, could be as high as $230k using the lowest comp
• Google drive link to comparable analysis
• Seller owes $90k, wanted to list at $150, I think he'll take $120k if I can close it in 30 days
• Assuming my private lenders will loan $130k loan to pay $90k note off, give seller $30k and leave $10k to finish reno at 7% on 30 year am payments would be $1230/m including escrow
• Comparable rents are $1600-$1700, I'm assuming $1500 conservatively
• Property taxes are $3600, insurance $1200
• Assuming Ill be the PM and I'm allowing 8% fee for that, $150/ maint, 5% vacancy

Given this my online calculator tells me I'd be sitting about $760 NOI and NEGATVIVE $100/m cash flow, obviously that doesn't work. Are my conservative numbers too tight? If I use $1600/m rent NOI goes to $850 but is still at or near $0/m cash flow.

If I can get the seller to $110k it starts to look better, cash flow gets to $50/m, I don't think he's going to get there yet. What else could I do to make a deal out of this?

You're not wrong. That's a ton of instant equity, hard to imagine it can't cash flow but that's the interest rate environment we're in I guess. I floated it out as a wholesale deal to a few buyers in the area but the highest offer I got was $105k. The comps are solid and recent but all but one are considerably newer. I'm not sure how to price that in on a mobile, but the 99 model sold for the highest $/sf but that's the extra acre of land I am sure.

how much is the dirt worth out there?

while a renter is likely going to enjoy having some land around them, I don't think it will equate to a linear delta rent wise.

That's what will make it difficult to cash flow in my opinion.

Quick look on Redfin put's it somewhere between $50-75k an acre depending on proximity to 35, the best comp looks like it sold in May for $110k for 1.73 ac with no utilities.

Unfortunately its in a subdivision but I could get away with adding a RV spot to rent out.

Fancy MH spot! Can you subdivide the lot?

Not without moving the existing home, the lot is longer than it is wide and the home is sitting parallel to the road smack in the middle. There is some flood plain at the back of the lot so couldn't do a flag lot either. Good idea though. Thanks Jaime.

If you've got time this weekend and it's located in Texas I'll walk the deal with you. Email me Corey at Gbtpm dot com

Just laid down and read the post.

We are installing 3/2 singlewides and renting them for $1700 a month.

We just rented a 4/2 in Mexia for $1600 a month.

I think $1500 is very conservative.

To own the house at todays interest rate on an fha loan the payment would be +~ $1800 for an owner occupant according to your ARV

If I was worried about tight cashflow I'd look into owner financing it.

But if I wanted to own it as a rental, I'd float a Fb marketplace ad right now at $1900 a month and see what the interest is.

Would you buy this owner finance or rent it for $1950 a month? pic.twitter.com/uhRa5OvRCp

— Corey Thompson (@Roughneck2real) August 26, 2023

Does the depreciating aspect of a mobile home affect rental decision versus a regular house?

Do you get it paid off/for before it falls apart?

redaszag99 said:

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Does the depreciating aspect of a mobile home affect rental decision versus a regular house?

Do you get it paid off/for before it falls apart?

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Mobile homes have their issues. But we are buying a community of 80 units built in the 80's that are still rented today.

If the mobile home is elected at real property it will have a 27.5 year schedule. If it's personal property it will have a 7 year schedule.

The combination of 'MH' and 'investment' never crossed my mind.

itsyourboypookie said:

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redaszag99 said:

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Does the depreciating aspect of a mobile home affect rental decision versus a regular house?

Do you get it paid off/for before it falls apart?

---

Mobile homes have their issues. But we are buying a community of 80 units built in the 80's that are still rented today.

If the mobile home is elected at real property it will have a 27.5 year schedule. If it's personal property it will have a 7 year schedule.

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Now you're talking.

Absolutely one of my goals.