Possible Land/Home deal to critique - Posted by Chris
Posted by Chris on April 11, 2007 at 15:31:51:
I was riding through a lower-middle class neighborhood in my city today and found a 3br 2ba doublewide on permanent foundation on an acre lot.
I was pleased to see that the listing agent is one I have done business with in the past. It turns out that the list price was $15,900 for some time, but lowered YESTERDAY for $9,900.
Acre lots in the neighborhood are worth approx. $6.5k- 8k and the realtor says that the owners are open to offers…
The downside is that I cannot refi a trailor it’s age ('77), and at the time I am very cash poor. I will more than likely be able to get a short-term high-interest loan for acquisition and repairs, but would ultimately like the exit strategy of refi- rent forever.
Here are the numbers:
Purchase price: $9,900
Repairs: $5,500 (carpet,paint,costmetics)
Rent: $600/ mo. or $7,200 annually