I haven’t done an update of our mobile home adventures in a few months, so thought I would take the time to review our progress…
The big news — if you haven’t already figured it out — is that we’ve decided to stop buying mobile homes at this point. While the return on investment was very good (over 100% on most of our deals), the total profit on each investment was relatively small (no more than $3K). Given the headaches involved in flipping mobile homes, it just wasn’t worth it by our standards.
That said, I still highly recommend that anyone looking to get into real estate or anyone who wants to make some extra cash with relatively little effort should look into doing Lonnie Deals. It’s easy money, and doesn’t take much cash to get started.
Okay, on with our update…
As I mentioned in my last MH update, this one is sold, and we lost $123.47 on the deal. It’s the only deal we’ve ever lost money on, but selling for a tiny loss was a lot more appealing than rehabbing that piece of crap and putting it back on the market.
We’ve had our buyers in this home since October, and they are fantastic. They’ve paid their loan payment on-time every month for the past 7 months, and haven’t had to call us for any issues.
They owe about $2700 more and have 11 more payments before they’re paid off. I’m fairly confident they’ll get this paid off on-schedule or perhaps even early. We’re into this property for about $2400 after all costs and expenses, and we expect that if these buyers pay off the note on-schedule, we should make about $2500 in profit, for a bit more than 100% return in 18 months.
These buyers paid off the loan this week, so this one is officially sold.
We had $1349.83 invested into the home, and our profit was $2740.17, for a 203% return in about 5 months. We’ll take it!
As I mentioned in my last update, we purchased this home for $1500, put in about $420 in rehab and tax payments, and then turned around and sold it to a cash buyer for $3500. In the week that we held that property, we made $1579.29 in profit on a $1500 purchase, for greater than 100% return in one week.
The buyers have been in this home since March, and we’ve received all 3 note payments on-schedule and without any issues whatsoever. The buyers have 10 more payments to make, and currently over about $2400 in principal.
Projected profit on this one (assuming the buyers pay off the mortgage on-schedule) is $2650, for a 250% return in just over a year.