Posted by Tony-VA on March 02, 2002 at 07:32:58:
If you are looking for cashflow, you may have a very low maintenance rental income on your hands.
If you can get the home released from the lien (or if you can get it titled separate from the land), you could Lonnie deal the home out (or rent to own just the home). You would then simply rent them the dirt each month for as long as you like. A good cash flow with little landlording effort.
Food for thought.
Tony-VA
Got another MH, but not a “Lonnie deal” - Posted by Jim FL
Posted by Jim FL on March 02, 2002 at 01:24:01:
Hey guys,
I’m rarely on this forum, since honestly, MH’s are not my main gig.
However, since my call volume is large and I live in FL, I get a fair share of sellers who have them and need out.
Frankly, not too many callers have anything I’d want.
Also, I have no relationships with PM’s, and the like.
So, last week this seller calls me and has a decent early nineties MH, in GREAT shape, with land.
We talk numbers a bit and I go see the place.
It is in a subdivision that is 100% MH’s.
The lots are all sold, and have homes on them.
Over the last 6 months, three lots have sold, all between $20k and $25k.
I ran the MH thru the book and came up with a value of approx. $14k (According to the book.)
The seller wanted to just walk away, moving into a relatives house to go back to school full time.
They only owed approx. $22k on the MH and land.
Decent interest rate, so the payments are low.
Market rent on the home is about $550-$600/month.
So, we took this whole shootin match subject to.
The seller signed a note with me to make the next three payments, and cut me some checks dated for the next three months on the spot.
The sellers moved out to their relatives house, right here in town, yesterday.
I placed up some signs, and a few flyers over the last couple of days.
I advertised the place:
RENT TO OWN-Problem credit okay
2 bed/2 bath-Hot tub
Nice MH with LAND in such and such subdivision
$1500 down
$575.50/month
xxx-xxx-xxxx
I already talked to a local lender for MH’s (He is a friend, and someone I trust), and he said that someome should be able to get a loan on the thing for between $42k and $46k easy, including the land.
So, after getting TONS of calls, it seems the place will be filled this week.
The purchase price to my buyer will be $40,500
Not a GREAT deal, but it breaks down like this;
$1500 upfront
$1726.50 (first three months rent, I keep 100% due to seller paying me)
$230/mo cashflow after the first three months.
$15,800 backend. (We are giving the buyers $100/mo rent credit, IF rent is paid on time.)
Total: $20,406.50 (Assuming of course we get the T/B’er to refi the place at 9 months or so.)
One of the potential buyers according to my broker, can get a loan NOW, but I want the cashflow, so we’ll hold them in the place for a few months. (Shooting for the whole year)
So, no “Lonnie deal”, but a deal just the same.
Someday I’ll get into this MH thing with Lonnies methods.
This one was rather easy, and I don’t mind doing a two bedroom, since I get calls asking if I have them all the time.
I may just do some mailers to some of the local subdivisions where there are MH’s with land.
Anyway, how’d I do guys?
Tear it up or share your thoughts.
Thanks,
Jim FL
MH Deal - Posted by JHyre in Ohio
Posted by JHyre in Ohio on March 02, 2002 at 08:32:40:
I’d take it! My little experience with MH’s on land has been good- and I prefer to keep the land for hassle free ground rents. So, assuming that there are no deed restictions or the like, I’d sell the home and rent the land. If I were to sell the land along with the home, I’d expect to do so for cash, because land/home deals are easier to finance than just plain old MH’s. Just my druthers, I’d still take your deal any day of the week! Welcome to the Dark Side.
John Hyre