I’m a couple weeks behind on posting the details of some Mobile Home transactions, but wanted to get this one in here…
We purchased our fifth mobile home about 2 weeks ago. It was a private sale from a woman who was moving out, and she was only asking $500. We paid her full price and within a couple days had it sold (with owner financing) for $3500. We had to put $200 hundred dollars into the home to fix a couple minor flooring issues, but ultimately we should make about $3000-3500 after all financing charges and other fees our buyer will pay.
We have some other interesting news on a couple other MHs we own, and I’ll try to dedicate a post to that later this week…
{ 5 comments… read them below or add one }
Hi there,
What an inspirational blog man! I just 24 years old and I am also in the Atlanta area. I’m really thinking about doing some Lonnie Deals.
When you say that the monthly payment on a deal is 250 per month — that is only for the actual trailer correct? The lot fee is separate?
If the lot fee is separate — what on average have you been finding lot rental rates to be in Atlanta?
Thanks alot!
I would love to take you to lunch one day soon!
Lol– just read my comment
“Just *turned* 24 years old.
T -
That’s correct. The lot rent is separate from the loan payment. Once the loan is paid off, they own the trailer, but will have to continue paying lot rent for as long as it stays on the park land.
In Cobb County, where we held our MHs, the lot rent tended to be somewhere in the $350-450 range for the decent parks.
General rule of them is that you want the loan payment plus the lot rent to not exceed the monthly rent of a similar sized apartment in the same area. Typical 3/2 apartments in the areas where we bought were about $700-800/month, so we wanted to keep the total payment below that amount.
J,
I was curious to find out what percentage of the note price did you sell the notes for on the MH’s that you didnt keep. I am interested in buying notes on the Lonnie Deals.
Thanks.
Hey Andre,
For the two notes I sold, I believe the final sale price was about 60% of the face value of the note.