MHP Investment--New to me
Hello,
Need advice.Sellers remorse...In 2001 I purchased MHP from private owner who started this on family property. Needed to sell and I wanted an investment for retirement income. OK, here's the scoop:
7acres 1DW 5SW lots rented at 100per mo. I purchased for 75K. I developed 1SW 3DW lots. Overall have put 25K in develpment and improvements. All are on individual septic systems. All rent for $130per month, includes water and trash. Two main water meters. Water averages $25permo.Trash $56 per month. MHP is in fast growing are in Alabama near new Honda plant. Just annexed into city and new school system. Property values have risen. NOW here is my quandry -- I have listed with realtor for $129,900. I bought for 75K on 15year 8.5% balloon note (5year) with no money down. Was this and is this still a "good investment"?? My realtor thinks the price is a fair market price. I did have an offer to purchase with a 25k promissary note and requested owner finance the balance. I turned down because I don't want to owner finance. Why should I consider owner financing?? What are the pros and cons??
Well I can think of many reasons why Owner Finance is certainly not against you..
But first let me say, Sounds like it may not have been on the market that long, thus you may have a cash buyer right around the corner just waiting to meet your price or at least offer a good counter.
However, then again, maybe you dont have one around the corner... so as long as its paying your not losing by holding on till you find your buyer.
However, since you did buy it creatively with no money down.... perhaps selling creatively can be done in such a manner as to make it worth your while by placing cash in your pocket and carrying the balance will allow a buyer to place other moneys into the property for further development.
While this is happening, they are paying yourmortage and you can structure this so that you have a positive cash flow to boot.
It really depends I feel on your motivation and need.
Just my Humble 2 cents
BTW where is this located... and what is the monthly net? I just made an offer on a Park in Ok of 140k cash.... they turned it down but my counter was an Owner finance of which they like better.
Ill let you know if I get it or not, it was for 285k. You may see why they turned my cash offer down