Hi, My son and I attended MOM last year. It was an eye opener and the best time we ever spent meeting many great folks. Now we have purchased a double wide on 1 acre. We rehabed it and have $25,000 in it. Because we used all cash we are thinking about financing it to pull our money out. It was “bank appraised” for $50,000. We need to decide to either sell it (with or without owner financing) or rent it. If we rent it we could add a second home on the property. Any ideas? Thank you, Robert
I like these kind of deals.
Having the opportunity to add another home to this property makes it even more interesting.
What would the current land/home package rent for?
In most cases if I can add a home to a property I already own it comes out very nice as the land is already paid for by the first home.
In either case you may wish to refi and pull out your cash for more deals. That is the basis of our “land bank” approach, to use one property, keep it cash flowing, obtain our cash back (and then some) tax free via refi and put that cash to use in other properties to increase our cash flow, net worth and access to more cash.
Tony
Thank you Tony for responding. The home has been wrapped in ceder (looks like a stick built) and has an in ground pool. It should rent for $550 fast or $650 if I wait a little while. We can finance and pull out $40,000 less loan cost. I could put a single wide on the ground for apx. $4,000 for utilities, septic, etc. plus the cost of the home. The cost to move and set of the home is about $2,000. I can’t find a good used home for less than $20,000. If we do this there goes most of our money. Robert
Robert, that first home sounds pretty sweet. I like your costs on adding a singlewide except the purchase price. You have got to be able to better than that.
I have bought doublewides from SC for $6k but they need a great deal of work which I do myself.
You should be able to find a singlewide that must be moved for far less. I would look for a Lonnie dealer from your area who can flip you one or start looking in the free papers for a cheap home that must be moved, ask local parks (just like a lonnie dealer would) and/or just farm local parks for a home to buy and move.
Even GreeTree repos would do you better than $20k.
Yes, you will likely pay more for your home that I would because you are likely looking for a bit newer home to go with the current home but balance that price with what rent this home will support. Judge it not on our standards but of the standars of those seeking to rent it.
Let us know how it goes.
Tony