Posted by Shawn J. Dostie on July 17, 2002 at 11:59:22:
You don’t specify the year and size, but we typically look for a little better yield, such as maybe 8-9 years or whatever works out to 14k on the mobile. It does look like a good turn around time (existing renter/buyer) If you have the cash you aren’t gonna get hurt. If you’re buyer defaults, find another buyer and do it again. MH’s are difficult to sell cash outright, but terms open up the new ballgame.
Good Luck,
Shawn(OH)
Is this a good deal??? - Posted by Mark
Posted by Mark on July 17, 2002 at 10:33:38:
Hi - I have the following opportunity:
Purchase a MH for 7000
Existing renter pays $300 / month
$100 per month go’s for the dirt.
I get $200 / month rent.
I have not done any MH deals in the past. I have duplexes that are appreciating in value. I don’t think MH’s typically appreciate…?
Anyway, the renter has expressed an interest in purchasing the MH, but can’t get the loan. I’m thinking of seeing if the renter would want to buy it from me.
I would have the renter pay me $200 / month for the next six years. At the end of that time, the MH is theirs.
This is a good deal by the numbers I have calculated. I am effectively selling the MH for $10,795 at 10% interest.
Is this a reasonable deal? Am I taking on more risk than I think I am? I guess I would need to create a note and a mortgage, etc?
Any advise would be greatly appreciated.
Thanks,
Mark