Posted by NC Homebuyer on August 21, 2003 at 12:31:53:
ScottS,
Thanks,
Good information. I’ll work on it.
First SW. - Posted by NC Homebuyer
Posted by NC Homebuyer on August 20, 2003 at 18:46:21:
1992 Titan SW 2/1 on 1/2 acre. Fenced back yard.
The SW is $7500, $212 per month and the lot is $12,700, $184 per month. Taxes are $96/yr.
Good condition inside, just new kitchen linolium. Outside, new skirt wouldn’t hurt.
As a rental it should bring about $600 month. Id like to owner finance it (wrap).
I would appreciate thoughts. I’ve done several homes, three double wides, but never a single wide.
Re: First SW. - Posted by ScottS(NC)
Posted by ScottS(NC) on August 21, 2003 at 07:48:48:
NC,
If this deal were in the Asheville area. The Price looks decent $19,700 for a 2bd 1 bth 1992 SW on a half acre. The terms aren’t so good I normally anticipate a 1% monthly payment just as a rough guide line for debt service, this usually is very close at todays rates. In this case about $197 per month. Your paying $396 monthly I would add another $100 a month at least for taxes and insurance and maintenance. now lets call that $500 a month in expenses and $600 a month in gross income. Leaving roughly $100 amonth positive. This is to skinny for me I need $150 net. Now if you could get some better terms, have a bank finance the whole deal for 20-30 years then cash flow would be much better.
Single wides are much harder to get financed through banks. If you can get one to do it for you its the best way to keep the monthly payments low. Very few hard money lenders would touch this deal at bank terms 8-9% intrest amortizied over 20-30 years. They would want more intrest and shorter times usually with a ballon. Hard money works only with really great deals or something you know you can refi quickly. Now if you have family or someone who might be willing to give you good terms then go for it.
I am learning that the only thing that matters to me is monthly cashflow. Net worth and paper equity are nice but I cant pay a bill with either of them like I can from cashflow. Find the number you want in positive cashflow and structure the deal to make it work for you. Take Care ScottS(NC)