Update with my mobile home

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


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


PV$8,495.00 (I took off $1000 down payment)

Other Monthly Charges$15.00


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


$1000 down payment


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!!

Congrats, you are almost there.

I am all for Lonnie dealing a home off quickly instead of renting, especially if you don’t own the land, however… my steadfast landlord mentality does lead me to point out that you may have overlooked the tax comparisons. One allows for depreciation (landlording) and the other has a pretty nasty tax hit due to “dealer status” treatment not allowing for the installment sale. This can (thankfully) be reduced or at least spread out the tax hit using John Hyre’s aggessive tax method.

Just food for thought.