Looking for That Next Deal

Today I went to look for our next rental property. If you recall yesterday's post, I found a mobile home on a small lot that could probably be purchased for $20,000 or a little less. I looked at that mobile home today and was quite impressed. The mobile home is in excellent condition and would require no work before tenants could move in. After looking at the property, I believe that I could rent it for $500 per month, which would be good for a $20,000 rental. As part of my due diligence on the property, I looked up the property on my county auditor's website. The land alone is valued by the auditor at $17,000. I also looked up the owner's name on the county recorder's website. I was able to determine that the owner had a $17,000 mortgage on the property. The mortgage was made in 2002, so the owner probably owes nearly the full amount. Because the owner has a mortgage on the property, he will likely need cash for this deal. I like this deal and am seriously considering placing an offer on the property in the morning.

While I was in this mobile home development, I found four other mobile homes for sale. One was another mobile home right across the street. This was listed with an out of town realtor, who I called. The asking price was $62,000!!! I about fell over dead from the shock. The realtor insisted that they were taking all offers, so I told him to tell the owner that I MIGHT offer $20,000 and if the owner was interested to call me back.

Two of the others for sale had FSBO signs in front of them, but no phone numbers. They were clearly vacant and had been for some time. In fact, they were vacant so long that the phone numbers on their FSBO signs had faded away. I made an initial effort through the auditor's website and the phone book to locate the owners, but to no avail. I'll have to do a little more work on these. Good deals often require a little extra work!

I'll let you know tomorrow what I decide to do about the offer.