Last time, we talked about a mobile home investment project that I have done. In the article, I explained in detail how I found, bid, and financed the project. In this post, I would like to complete the story, and tell you exactly what repairs and rehabbing I did, my timeline for living in the property, my marketing strategy, and how I make money on the deal even today!
The Importance of the Right Deal
Alright, so before I go on with the rest of the story, I want you to know just how important it is to know the key to real estate investing. You see, you can do all the real estate internet marketing and other types of advertising you want, but if your price is too high the property is just not going to sell. So you need to make sure you buy in at the right price. This is what I mean when I say that you need to have the “right deal”.
Now then, on to the rest of the story.
My Mobile Home Investment Project Renevations
So once I had closed on the property, I moved in, and began to work on the place. There wasn’t much wrong with the mobile home, it just had some holes in the walls where the previous owner had been careless with the place. Also, it had stained and dirty carpet. But the kicker was – there wasn’t any place for storage on the property. So I thought that this was the first item that needed attention.
So I had a friend help me build a 12 x 16 foot shed. We built it ourselves, and the total cost came out to about $1,300. That solved the storage issue. From there, we simply lived in the house as it was, until we moved out. Later, we repaired the walls at a cost of about $600, and added a chair rail to the living room. But to date, we still have not replaced the carpet. The house was in good enough condition to market, and I didn’t want to spend the extra money.
Marketing & Profiting from the Mobile Home
You know, marketing this home was easy. In fact, with a sign in the yard and one ad in the paper, we had this home rented within one week. One week! You see, for the area the mobile home was located in, $650 in rent is a great deal for a 3 bedroom, 2 bathroom home. A new tenant jumped on it almost immediately.
That is the power of finding the right deal. With a cheap enough buy in, you can afford to market your property at or slightly less than market value, and still realize a great return on your investment. With only paying out approximately $350 in total PITI, I am cash flowing $300 per month on this home! That is over an 85% return on investment (not counting the initial buy in and repair cost) each an every month!!
So here’s the bottom line. You must find a great buy on a piece of desirable real estate. Sounds tough – but I am telling you that you can do this in any market – whether real estate is booming or busting. Right now, it is easier than ever to buy real estate at a fraction of its fair market value. So get out there and make it happen, and leave me your comments below! I want to know what you think of this article, and how much value you are receiving from this blog.
The Real Estate Geek