Cash Flow
I was approached not to long ago by a person who's father owns and rents two mobile homes on some of his land. He told me his father was considering selling the two homes and four acres but was not really advertising it.. At the time I had my sights set on something else and didn't really think about it. I also didn't and don't have alot of money to put down. However, here lately I have thaught of purchasing the two homes for cash flow. He had told me he would be willing to sell me one mobile home and the four acres for $68,000 and take over the payments on the other mobile home or the whole thing for $89,000. What do you think, as the rental income is an easy $900 a month????? Should I persue and if so, I do I go about getting financed with no money to put down?
Income is about to 1% of the purchase price. So it sounds OK. Look at expenses. Will you have a positive cash flow? Try to get the owner to carry a second mortgage. That way you can quailify for a better rate with convential financing (ie 80%LTV). Just make sure the lender allows seller seconds.
Quote:
On 2003-10-22 18:36, burrellc wrote:
I was approached not to long ago by a person who's father owns and rents two mobile homes on some of his land. He told me his father was considering selling the two homes and four acres but was not really advertising it.. At the time I had my sights set on something else and didn't really think about it. I also didn't and don't have alot of money to put down. However, here lately I have thaught of purchasing the two homes for cash flow. He had told me he would be willing to sell me one mobile home and the four acres for $68,000 and take over the payments on the other mobile home or the whole thing for $89,000. What do you think, as the rental income is an easy $900 a month????? Should I persue and if so, I do I go about getting financed with no money to put down?
A lot depends on the years of the mobile homes, their general condition, and wheter they are attached to the land as well as the area of the country in which you reside. If they are 1979's no, but if you don't need income off of them until paid for OK. I have a MH (79) that I paid $4500.00 for and rent the 2 acres upon which it sits for $150.00 per month and get $450.00 per month out of it.
Good Luck,
Shawn(OH)