Posted by JohnBoy on September 07, 2001 at 08:24:55:
If you get the MH set on the other lot before selling the house, you can offer the MH with lot as a package deal with the house. This would allow someone the option of buying both with having the MH as a rental property to help pay their payments towards owning the home and MH.
I would offer them both either way. As a package deal or separately, which ever way sells first.
Let’s say for an example you were to sell them both as a package deal for $55k? I’m assuming you’re thinking of putting a Lonnie deal type MH on the lot. You offer to seller finance with $5k down. You finance the $50k at 12% amortized over 15 years. The principal & interest payment on that would be $600.08 per month, plus taxes & insurance. The buyer can rent the MH out to help pay off his mortgage payments to you, allowing him/her to live in the house cheap!
Lets say you were able to borrow $50k against the lot amortized over 15 years at 9%? Your PI payment would be $507.13, leaving you with about $93.00 per month cash flow, plus the $5k you got down, after making the payment on your lot.
You end up getting your $20k equity loan paid off up front, an extra $5k up front on the sale of the house and MH, your lot paid for by your buyer’s monthly payments, and $93 per month in extra cash flow for 15 years! Then you have the equity in your house to use towards any future deals.