$16K to $10K

kathryn d

kathryn d

About 6 weeks ago we put an offer on a mobile home.(in a rented mobile home park)
The asking price was $15K. We offered $16K, with certain conditions.We would give him $500 month for 32 months.
He said no, and we didn't counter.

Two weeks ago we noticed the price is reduced to $12K
Today we offered $10K unconditional.
He accepted, and we exchange contracts on this Friday.

He's happy, and we are happy.
It will take us $2k to put it in rentable condition (needs a new oil tank)and a bedroom door.

We should be able to rent it for $650 month.
Yeah !

I love buying a rental with a credit card.
 
That's a great idea.
The livingroom can hold 2 sets of bunks.
One bedroom is large enough for 3 sets of bunks..and the other bedroom is large enough for 2 more sets.
However..we will just rent it as a single family home:)


We buy our IPs in Canada.This will make 3 mobile homes we own in this particular park.
These properties are cheap and easy to rent.
We will never make much in CG, but the CF is great.
 
kathryn d said:
That's a great idea.
The livingroom can hold 2 sets of bunks.
One bedroom is large enough for 3 sets of bunks..and the other bedroom is large enough for 2 more sets.
However..we will just rent it as a single family home:)


We buy our IPs in Canada.This will make 3 mobile homes we own in this particular park.
These properties are cheap and easy to rent.
We will never make much in CG, but the CF is great.
Click to expand...

read between the lines. i think you were being called a slum lord. either you're really thick or have thick skin.
 
topcropper said:
Nope. I reckon everyone was giving genuine congratulations, and I do too. Well done you two.


See ya's.
Click to expand...

Or the comment related to the thread the other day about how many people you can fit into each room of a house :)

Kathryn - Can you get finance for these low $ deals or are they all cash? Anything stopping you from picking up another 20 of these, even if they were $20k each, all on 5 year P&I loans?

Or if renting these is really easy, how about buying a whole park?
 
Ed Barton said:
read between the lines. i think you were being called a slum lord. either you're really thick or have thick skin.
Click to expand...

I might think that if it wasn't Wylie who posted it.It was from a friendly banter from another thread.
She doesn't have a mean bone in her body.:)

Generally you need cash for these deals.They will not use the mobile as security for the loans...they say they are too old.

Originally, I wanted one of our kids to buy it.
The banks will not lend him the money because he doesn't have any credit history. He applied for a credit card to establish credit, and was denied.(we will try another)
For the mobile to be permitted to remain in the park, the mobile originally was to be converted to electric heat, but because we have a good relationship with the park owners, they have allowed us to continue with oil, which will mean just adding an oil tank.This was one of the reasons he was having a difficult time selling this mobile.It also has be levelled on the pad again. Rob has done that to other mobiles, and is not a big deal for him.

This will our 8th mobile we own.
I have my eye on another, and maybe next year it will still be available...at a lower price.(on their own land)

Thank you for the congratulations.

Yes, some of our properties are cheap and basic.Some here might think we are slumlords.Many would never approve most of the tenants we accept.We still make sure the properties are safe.

I would love to have our own mobile home park. We have tried to establish one, but the rules are extremely difficult.These older mobiles are no longer being accepted into most parks.
 
I have seen those on the tv show COPS :D it honestly looks like a lot for $10,000!

Who cares if you are labelled a slum lord, there is good money to be made everywhere :)

You mentioned $650/month rent, but what sort of outgoings do these have in general, considering that they are part of a park who I assume take management rates?

Do most parks have similar rates?

Can you get insurance?
 
BuildingBlocks said:
I have seen those on the tv show COPS :D it honestly looks like a lot for $10,000!

Who cares if you are labelled a slum lord, there is good money to be made everywhere :)

You mentioned $650/month rent, but what sort of outgoings do these have in general, considering that they are part of a park who I assume take management rates?

Do most parks have similar rates?

Can you get insurance?
Click to expand...

Out goings would be $150 month lot rent
$250 property taxes year
$300 property insurance year

Rent year=$7800
Outgoing year=2350
Profit year=5450

Maintenance on average is $400 year.That is when a tenant breaks something.

We don't have LL insurance as Australia has.
Our credit card is offering 2.99% for 6 months. Plan to have it paid off by then.

Lot rent is generally $100-$150 month in our area. Closer to a city it may be $250 month, but rents are higher as well.
 
kathryn d said:
I might think that if it wasn't Wylie who posted it.It was from a friendly banter from another thread.
She doesn't have a mean bone in her body.:)
Click to expand...

Thank you Kathryn. You took it how I meant it, friendly banter from the other thread. I watched in horror as it looked like it was heading another way, so I'm glad you took it the right way.

And I actually am amazed at your deals, being able to repay a purchase so quickly that continues to pour money into your pockets from then on.

I reckon if we could easily do those sorts of deals here we would all be fighting for them. Sounds like easy money (apart from the management - which you do by choice, like we do).
 
Wylie,
These deals are everywhere.I'm amazed no one has snatched this mobile up in the last month. Even at $15K, it is a steal.

We can buy mobiles just like this that are not in a mobile home park for $1K-$5K all the time. It's just that no parks will take them. We would need to buy a parcel of land,( that doesn't have restrictions against mobiles) have the mobile moved, drill a well and install a septic. All up it would be about $15-$20k. Not a lot of money, but time consuming.

We looked at another property on the weekend.
In Feb, it was listed at 39,900. It is a 3 bedroom, 1 bath house.Looks like it might be a bank repo.Needs a bit of a cleanup and maybe $20K in repairs.
It could easily sell after a reno for $90K.
In May the price was reduced to $29,900.
It is now listed at $19K.
It is this property http://www.realtor.ca/propertyDetails.aspx?propertyId=10480060&PidKey=-1154745534

We needed to restructure our debts this year, so we will be in the position to buy these starting next year.(if we want to)

I just couldn't resist this one little purchase.:)
I have to buy at least one every year.
 
Interesting purchase. I wonder if Australians will ever go down that path to trailer parks for living haha...maybe after this carbon tax is introduced people will be forced to do that
 
You must log in or register to reply here.

Similar threads

V
LMI or bigger deposit?
Replies
5
Views
2K
Terry_w
Terry_w
M
Buyer wants to cancel contract..can they?
2
Replies
23
Views
10K
Perp
Perp
R
Urgent - Beating an "accepted" prior to auction offer
Replies
15
Views
3K
cadence
C
C
What to do?
Replies
5
Views
802
Peter 14.7
Peter 14.7
K
Is this reno viable? First time!
Replies
8
Views
5K
Ace in the Hole
Ace in the Hole
Back
Top