MH #2: Sold

October 12, 2009 · 5 comments

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.

5 responses to “MH #2: Sold”

  1. Chris Ranney says:

    Hey Scott, great to see you closing another deal. I see that you are carrying the paper on this deal. Can you touch on the basics of this type of deal. Who is the actual owner of the house while payments are being made? Who is responsible for repairs, taxes, insurance ? Hope I am not over-thinking it. Thanks.

  2. J Scott says:

    Chris –

    Check out this post I wrote a couple weeks ago:

    Basically, I just play the bank in this deal…I hold the note. The buyer is responsible for taxes, insurance, repairs, etc. If he fails to keep current on his lot payments, mortgage payments, taxes, etc, I can repossess (per the Promissory Note and Security Agreement), but he technically owns the property…

  3. Alex says:

    When are you going to post pictures?

  4. Sean says:


    The $250 you are receiving is payment on the note, correct? The buyer is still responsible for the lot rent on top of that, correct? How much is the lot rent in this case?


  5. J Scott says:

    Sean –

    Yes, the $250 is the loan payment for our seller financing.

    On top of that, the buyer is responsible for the $353 lot payment, the $33 garbage collection payment, and his utilities…

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