The Manufactured Investment Compound
I was interested in this property as an investment and so was able to meet my realtor after work today to check it out.
It is a rather unique property as it is a 2BR 1.5BA mobile home on its owned land and a 1BR 1BA location built "Casita."
It also has two sheds and an extra parking space large enough to park a small RV or boat.
The asking price is $99,000 and it has already fallen out of contract twice due to the problems of financing a mobile home. It turns out that this one isn't "tied down" (anchored) to the ground.
This isn't the best part of town, but it certainly isn't the worst. In fact, it is just past the border of a much better area and so the junior high and high school of that better area is where anyone living here would send their kids.
All-in-all, not too bad.
I figured that the 1BR would rent for between $400-450 per month and the 2BR would go for $600 or so. This means it hits the 1% rule of investment properties. The 1% rule means that the price you paid for a property should get you a gross rent of 1% of that amount per month.
As for those two sheds, one has electric ran to it. My plan would be to use them for my eBay operations. One just for storage and one for working out of. Taking pictures and listing items. It would be a way to have space for eBay that is not in my house AND make a profit by renting out the housing units.
I wouldn't expect any appreciation and selling would be a bitch as well. This would just be a cash flow property.
Expected rental amount: $1,000-1,050
Expected mortgage/taxes/insurance: $525
The 2BR has all appliances while the 1BR would need an oven and fridge (which I would just buy used -cheap- locally).
The Casita
Problems and Issues
I roughed out this floorplan of the 2BR. There is one main issue with it - the only shower is located in the master bath! AND the second bedroom has a half bath (toilet and sink). I don't know what they were thinking in 1978 when it was built. Oh yeah, it is a pretty old mobile home (but in good shape).
This means that any guests would have to go through a bedroom to use the toilet. AND the person living in the second bedroom would have to go to the master bath to have a shower.
This certainly limits the use to a family as I don't see roommates liking this situation.
Also, the property shares all utilities. I would have to pay for the utilities myself and then charge the renters for their use.
The Good
Upgraded windows, new HVAC in 2017, roof recoated in 2016, plumbing was redone in 2011, semi-new carpets in the casita. All appliances go with the property.
The property has had great upkeep. The yard and properties appear to be well maintained.
Since it is a mobile home, the property tax is VERY low. Last year it was just $447.
Conclusion
I see the potential here, but at $99,000 I don't think it is a large enough deal to pounce. I would like to buy this investment for between $60,000 to $65,0000.