After having to evict my previous tenants, and looking at our business and personal finances as well as the market for homes in our area, I have decided to try renting or selling my mobile home. I think it is best to go ahead and provide both options to the market as a way of getting someone to take action sooner. I want to be fairly transparent with this series: I want to give you the details of how I bought in to this property, what has transpired up to now, and what will happen as I move forward. So, here is a rundown of how I got involved in this property.
Buying the Mobile Home
At the time, I had a partner in my real estate business, and we were living in a home that we had every intention of turning for profit. We had bought in at a good price, fixed the place up, and were enjoying it while we were waiting to sell or rent it. Well it came time to do something with it, and we ended up owner financing it. So now we had to find another place to buy. So I did the research and saw solid potential in a double wide on a 1/3 acre lot on the outskirts of town. So we did the math, and bought in to the property for $26,500. This was a very good price, considering most similar properties in the area were selling for $40,000 or more. We did the work to repair it, and built a 12 x 16 foot shed on the property as there wasn’t any storage available when we moved in.
Dissolution of the Partnership and Rental of the Mobile Home
Several months later, I got married. Further, my partner was engaged, and planned to marry his wife about month after my marriage. So it was decided for me to find another house and start my life with my new bride, and he with his new bride. All was well until he got married; his wife got sick for several months, and they finally moved to another state, where her family lived. So obviously, I couldn’t continue the partnership when my partner was not around to provide any help. So we dissolved the partnership and I rented out the mobile home for $600 per month. This was a nice income producer, considering my total PITI was around $350 per month. But then troubled arose…
Just this month, I had to evict the tenants, and they left me with several damages to the property, and their total balance owed is far more than I had in a deposit (read more about it here).
The Decision to Put Up the Mobile Home for Sale or Rent
So getting caught up to today, I have decided to put the mobile home up for sale. With the addition of the shed, and a few other expenses related to getting the mobile home initially, I probably have some $30,000 invested. The property values seem to support somewhere around $55,000-$65,000 for a mobile home like this one. I will confirm those numbers after I talk with my broker (I am a realtor, but it is always good to confirm things with your sponsoring broker). So once I establish the price, I will put it on the MLS and include a “For Rent” sign as well in the yard. Hopefully, with the increased exposure, I can get the mobile home sold or rented quickly. Only time will tell, as I haven’t sold a mobile home yet. There are many problems with getting a mobile home sold these days, in particular the lack of conventional financing. However, this mobile home is FHA and VA ready (except for some minor repairs, which I will be completing shortly), so maybe we can get something done pretty quick. Stay tuned for further updates…
Internal Tags: real estate investing