Now that you have a good grasp on mobile home investing basics, I felt it a good time to show you an example of some of the results I’ve had. I am going to go through a mobile home investment project that I have done recently, and reveal everything to you – how I found the deal, how I financed it, the improvements I made, how I marketed it, and the money I have made on it.
Before I go on, I wanted you to know that you, too, can do this. This process is not very difficult in concept, but it does take diligence to follow through. If you want to be successful in real estate, you are going to have to reprogram your brain for real estate success.
How I located this Mobile Home Investment
One of my favorite online foreclosure websites yielded this deal. This foreclosure site allows you to search for listings in your area, as well as being able to submit your bid electronically (you do need your realtor to complete the bid submission, however).
So I simply searched for a property, found a mobile home in the area that was below fair market value, and placed my bid. After the bid period ended, I got my answer. HUD had decided to accept my offer! Now, I probably could have secured the property for even less, but my offer came in at $26,500 (this was my second or third offer, they rejected the other offers), and the list price was $27,000. This isn’t much of a difference, however the market said that this was a very good buy, as the market value showed to be somewhere around $38k-$40k. That’s somewhere around $11k-$14k, or about 1/3 off the retail value.
Financing the Project
Ok, so I had the accepted offer in hand, now it was time to finance the deal. With this property, my plan was to move in for a little while, fix the place up, and the move out and convert it into an owner finance property or a rental property. So I was able to talk to the bank, and secure financing for 90% of the contract price, for 10 years at 6 7/8% interest.
My payment (principle and interest) came out to 275.38. And when you add the taxes and insurance, the total was somewhere around $350 (I manage my own escrow payments, which are done annually and change every year, so that’s why I don’t have an exact number for you here).
So that is a total monthly payment of $350! A fantastic buy for an 1120 square feet, 3 bedroom 2 bathroom double wide mobile home on a 1/3 acre lot. No mobile home park either, I owned the land as well! Further, this was a 2002 model Palm Harbor home, so at the time I bought it, it was just 4 years old.
So here I am, with a new place to live, low payments, and excellent payout potential on the back end.
Stay tuned for the next part of this series, as I finish the story, and how I make money on this mobile home investment project.