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Living My Dream in Missouri

by Larry Carter   

Just wanted to let everyone know about my day. I just closed on a 4-bedroom, 2-bath single-family house on five acres with five rented mobile homes on the land. Original asking price was close to $100,000. I saw an ad that said, "just reduced." Their buyer fell through at the bank, and they wanted to sell quick.

The asking price was $81,500. The house rents for $400 and the mobiles rent for $225, $215, $210, $210 and $200, which adds to $1,460. I offered $77,000 and some change and was countered at 81,500, which was the asking price. That was bottom dollar and was priced to sell. I then countered with a full price offer with a 10% seller carry back. This was agreed to.

We closed today. We took a check into the bank for $8,200 and got a conventional 90% loan at 8.5% fixed at $722/month. After the closing, we went to another office, and the seller gave us a cashier's check for $8,000 on a 10% note at $165 a month.

He then handed us all of the deposits and rents, with the rest of the rents being due on the first of March. Taxes are $385/year and our insurance is $35.25/month, as the mobile homes did not end up on the loan. This translates to approximately $506/month cash flow.

These six units takes me to 22 properties, but this was a first where I walked away with money. Not bad for a man who lived in a $40/week motel room 13 years ago in this very town.

Thanks Ed Garcia for the phone call and all of the great help and advice from all of you Gurus on this website. To the novice investor. Make offers and then more offers. If you find the deals the money will find you. Living my dream in Missouri...

 
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