Posted by Ernest Tew on September 16, 2001 at 10:49:44:
George, I concur with the things Rich says.
If the owner is “hung-up” on price, you might offer him a little less than his asking price, make a large down payment, and give him an interest-free note for the balance. That way, all the payments you make will go toward paying off the loan while most or all of the income you receive will be either rent or interest.
I would also “sell” the home on a net lease and option arrangement instead of just renting it.
IS THIS A GOOD DEAL ? (Lonnie or Ernest) - Posted by George (SC)
Posted by George (SC) on September 13, 2001 at 10:13:57:
I’m in the process of purchasing a rental mobile home.
It is 14*80 1985 Rivercrest Deluxe 3br/2ba.
It is currently rented at $500.00 a month. Also the seller
will transfer the $300.00 deposit that the renter made.
The lot rent is $105.00.
The seller wants $9800 with $2000 down 205.40 month %12 4yrs.
Here is the break down,
lot rent $105.00 -
note 205.40 -
I make 189.60 + per month
Is this good or should I try again for better terms?
Re: IS THIS A GOOD DEAL ? (Lonnie or Ernest) - Posted by Rich_GA
Posted by Rich_GA on September 15, 2001 at 15:37:26:
George,
When dealing with other investors, they should be able to make better deals than this. A 1985 14X80 should be much more than 4-5k to an investor. Now having a tennant in there may make some difference, but is he/she a good tenant? What has the rent history been like? I think the seller can come down in his price quite a bit. I’m not saying the cash flow isn’t good, but, you are tied up in this thing for 4 years and are responsible for the maitenance and upkeep. You probably won’t even have title to control anything. I’d try to get the seller down to 5K no more than $1,000 down and a promisary note, AND you take title without a lien. This way you can control what you need to control. Otherwise I would pass this one up.
Rich_GA