This is really a great forum and I really enjoy reading it.
Both my wife and I have full time job. I am bad at stock market and lost quite some money on stock market. Because we have not try to figure out how to invest in other revenue over, we put down more than 30% for our home purchase and try to pay our mortgage off in 15 years recently–well the interest rate is so low at 4.25%, but not much saving over 5% rate for 30 years. After full contribution to our 401K and IRA, we still manage to have some savings (around 100K) that parks in our bank account that earns less than 1% interest.
So we decide to see real estate to invest. Both of us have excellent credit score and I think we are qualify for a loan for house/apartment rental purchase. I stumbed into MHP idea last year. I had done quite some research and the model makes sense to me, at least it is more attractive for me than apartment/rental. But there are few problems. First, I found financing is hard for MHP, especially with someone like me who is completely new to this. Second, I don’t have that much time to deal with MHP business except my 3-4 weeks vacation days. Third, I have no experience in MHP manage at all and I am not sure that I can find a good/honest manager. I have couple friends that are in same situation with me who may have more cash on hand and are willing to invest with me. The way I see it is that we may be able to retire confortably with our 401K and pension, and hopefully social security, but that means we have to work another 30 years or so. An investment now may enable us to retire earlier.
So here are the questions:
Is MHP good for us to try?
We are confortable with passive income and don’t need to flip parks, but we do have consistent 20-40K savings each year that can be put into business development if needed. So ideally we should buy a stable park with some potential to develop further, right?
Should we just try to partner with someone to be a paasive investor? I am not sure how to partner with someone who have much advantage/knowledge over me. He can easily fool me. How do you tell whether he is honest or not?