So this is how it went down today… i finally met with the banker today to sign the papers… right after i got the keys i went there to measure things out and make a material list… then i went home and ran some numbers in my spreadsheet…
if i sell it the way it is:
Length of Loan48
Interest Rate0.12
Sale Price$12,000.00
Downpayment$1000(i took it off the purchase price)
PV$3,500.00 (I bought it for $4500 - $1000 down payment)
Other Monthly Charges$15.00
Principal$12,000
Monthly Payment$331.01
Total Payments$15,888.29
Total Interest$3,888.29
Cash On Cash$3,972.07 113.49%
Loan Total Return$3,888.29 453.95%
Whole Months10.57
Overall Return$12,388.29 353.95%
Annual Return$3,097.07 88.49%
If i remodeled it and put in $4500 labor and material, $495/rent and i would have to work for about 2 weeks… here is what it looks like
Length of Loan48
Interest Rate0.12
Sale Price$30,000.00
Downpayment$0
PV$8,495.00 (I took off $1000 down payment)
Other Monthly Charges$15.00
Principal$30,000
Monthly Payment$805.02
Total Payments$38,640.72
Total Interest$8,640.72
Cash On Cash$9,660.18 113.72%
Loan Total Return$8,640.72 454.86%
Whole Months10.55
Overall Return$30,145.72 354.86%
Annual Return$7,536.43 88.72%
so to make the same profit annually i would have to put in another $4995 + 2 weeks of back breaking work…
then i would have to sell the mobile home for $31,000 and monthly payments of $805.02
so i figured ill go ahead and post the mobile home on craigslist and see what kind of reaction ill get… here is what my ad looked like
rent to own- 3/2 mobile home - needs work - handyman special
$13,000
$1000 down payment
$331/month
and some more information on the place… I got a call 3 minutes later, setup an appointment in half a hour, met him, he liked it, gave me deposit, i gave him the credit application and we were on our way!!
so if everything goes through this will be my very first deal!! ALL I GOTTA SAY IS IM HOOKED!!