I want to buy a small house with cash; I want no mortgage.
I really want to buy a MHP.
I am older, have 200k to my name of which I can spend 130k.
Here’s the scene:
I just completed a loan mod on my home. I now have a 400k loan amount. My total monthly payment is $1650.
I have a renter who pays $750 so my net out of pocket housing cost is $900.
In four years my monthly payment increases by $150 per month and caps out at about $2000 in 7 years.
The worst case scenario in 7 years is $1250 per month housing cost keeping a renter paying $750, not including property tax increases which are sure to come.
Due to home prices increasing and foreclosures lessening, now may be the time to find a home in my price range. My new housing cost without a mortgage will still be about $500 per month due to property taxes.
This scene takes purchasing a MHP off the table though I will still have 70k which should be my safety net.
If after moving, I sell the house I’m presently in + a condo I own, I should walk away with 50k net which would then give me 120k to work with. This could take a up to one year.
Investing 100k in a MHP with only 20k left for safety net would be OK because my home would be paid off, I would be increasing my cash flow by $400 per month due to no mortgage payment ($900 now w/renter minus $500 prop taxes in home pd off) = $400 increase which could add to the 20k safety net.
I buy a MHP now and stay where I am, my renter keeping my costs fairly low. But then there’s the big house with the big loan that I don’t need or want. I think there is a creative way around this but I’m not seeing it. Any ideas?