Currently rented - Posted by Jason

Real Estate Investing Mobile Homes & Mobile Home Parks
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Posted by Dr B. (OH) on January 11, 2007 at 15:48:43:

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Currently rented - Posted by Jason

Posted by Jason on January 11, 2007 at 04:03:58:

Hello, I have been monitoring this forum for a while now and have learned a great deal from the experience of everybody else. Thank you for that.

I have a question. I have read DOW and MMwMH but have not yet done my first deal. I have looked through a few parks in my area and am going to look at a SW this weekend. It is a 1999 14x70 3/2 and has a current renter @ $575, with a lot rent of $200. The asking price is $11k - the majority of the homes that I have seen for sale in my area are asking ~$15k for similar size and model year (in parks).

My question is two-fold: does anybody have an opinion as to whether they perceive this to be a viable deal and is it worth pursuing whether the current renter would be interested in purchasing, rather than renewing their lease?

Any opinions and/or thoughts and advice would be greatly appreciated.

Thanks.

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i would just buy the thing - Posted by dkopp

Posted by dkopp on January 11, 2007 at 04:27:07:

I think it is a great deal, even if your renter doesn’t stay. I live in Canada. Prices here are very different and it is far more difficult to do these deals. But if I could get a place for 11k that I knew could rent out for $575, I would buy it in an instant. It is like your research has been done for you. You could even keep the rent payments the exact same and ask if the person just wants to own it. I know this wouldnt make as much money as getting a down payment, but you wouldn’t have to lose a month by having them move out, cleaning it, advertising it,and selling it again. I would just tell them to buy it for the same monthly payments. Sell it for $20,000 in 6 years at 10%. It is a pretty good sell and you would make $6530 off of interest. So the benefits would be; not having to find a buyer, not having to clean it up, and making a total of $15,530 over 6 years. I think that is a pretty good deal.

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Re: i would just buy the thing - Posted by Jason

Posted by Jason on January 11, 2007 at 12:14:48:

Thanks for the advice. Question, though: should the security deposit for the current renter transfer over, if I should purchase the unit? I believe the lease expires in March/April.

Thanks, again.