(Note: Since I’ve received a lot of requests for more case studies, I thought I’d make a post on another one. Enjoy!)
Like many of my deals nowadays, this lead came from a park manager. And the funny thing about it? The park manager had initially gave it to a family member who bought the home from another family behind on lot rent. Unfortunately, this family member changed their mind and decided not to take on the home. So I got the call.
When I talked to the park manager, I found out the home had been sitting vacant for 6 months. Now this is a park I regularly do business in. I had no idea!
Explaining the story, the manager told me the family member no longer wanted the home. And would sell the home to me at a fair price. It was a home that fit my criteria: 16×76, 3 bedroom, 2 baths in good condition. So, I decided to take a look. Glad I did!
I met up with the family member and we took a look around the house. To my surprise, there were a lot of items still left in the home. I even noticed a pan on the stove that looked like they were in the middle of cooking before they left. As it turns out, the family living there before could not pay lot rent. They picked up and left. Took as much as they could.
(Note: I’ll probably do another write-up on the condition of the home before I fixed it up down the road. Let me tell you, there was a lot of stuff in there!)
In any case, the electricity was on. So, I was able to inspect the home. The air conditioning and heating (HVAC) worked. The only thing that may have been in question was the roof since the home had not been lived in. But other than that, it was just a matter of getting all the items out of the home (which is another story in itself) and cleaning the house up.
(Note: For more information on the inspection process, be sure to check out my book. Thanks for reading!)
I told the family member I’d probably have get my roof guy to look at the roof just to make sure things were OK. We agreed.
To make a long story short, the roofer looked at the roof. Turned out there was a small area that needed to be repaired, nothing major just a few shingles needing replacement and new flashing boots. We factored this repair into the price along with the cost it would take to remove all of the items out and do the cleaning. And I got the deal done!
(Note: For help on working with contractors, be sure to check out this book)
So you see the importance of networking? Had I not had a good relationship with the park manager I would have never heard about the deal. In fact, I didn’t even know the home was vacant. It looked great from the outside!
Before I get into the numbers, here are some pics of the inside:
All in all, I spent 14k on the home including the stove and refrigerator. I found an nice family for it receiving a $2000 move-in fee and it cash flows in the $500 per month range for the next 15 years. It made for a nice and relaxing cash flow payday for many years to come.
p.s. Feel free to leave comments on any post on my Facebook Page. Comments are always welcome, thanks for reading!
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Interested in learning more about mobile home investing? Be sure to check out my book, thanks for reading!