It looks like we’re about to sell our second mobile home. If you recall, we purchased this one last week from a desperate seller for about $1600, and will be putting in about $80 to fix a railing on the back deck (the park is requiring this fix).
We will be selling this one for $5000, with owner financing. The financing terms are pretty simple:
- No down payment
- 24 monthly payments of $250 each.
The reason we are doing no down payment is that the buyer will have to pay $350 in sales tax at the purchase, so we are trying to limit his additional upfront out-of-pocket expenses.
The total income this property will generate over the life of the loan (2 years) will be $6000 (24 x $250), which is a total profit of about $4300, and a yield/return of about 180%.
One of my partners is with the buyer today getting him approved for the park, and the plan is that the buyer will sign the contracts and move in on November 1.