I am a high school English teacher whose wife wants to quit work when we have kids. Being that I have summers off, I decided to look into investing in something. I can’t remember how I heard about it, but after buying and reading Deals on Wheels, I knew that I would be investing in mobile homes.
My first deal, a 1969 2/1, was advertised in the local paper for $1,500. The tenants owed back lot rent of over $1,000 and $150 to the title holder. I paid $760 for discounted back lot rent, (the park manager is very helpful) and paid the money to the title holder. I paid the current tenant $40 and, when all the dust settled, I had $960 in the deal.
I sold six hours later to a couple who had responded to my ad for $2,200, $500 down and payments of $150 or so for the next 12 months. My yield was well over 300% and, more importantly, I had my first deal completed!
My second two purchases came from another park owned by the same big company. The first park manager told the second park manager about me, and he called me with two 1970 2/1 mobile homes for sale. The owners were both very motivated.
Seller one started out wanting $2,500, but the next day gladly took $1,500. I paid one month lot rent of $247, and I am in the process of selling for $7,000 with $1,000 down.
Seller Two had been paying lot rent on their vacant mobile home for eight months, so they were willing to let go of their home, which was completely furnished (I’m talking silverware and laundry detergent still in the house), for $1,750. I paid lot rent on that in the amount of $247, so I had a total of $1,997 in that deal. I just closed today on that home for $500 down, and $8,000 financed over 60 months at $187 per month. The yield on this deal was 145% annually.
I love this business, and it is the first type of investment that my wife has been excited about as well. I plan on being able to replace her income within the next two years. Thanks CRE Online!