Why I liked it
The package deal gave us flexibility to divide the sales price however we wanted across the two properties, hopefully allowing us to pull out all of our cash in a BRRRR and hold on to two great properties located in one of my long-term growth target micro-markets.
Deal structure
We could not find a lender who would give us favorable terms on a manufactured home as an investment property — we needed both short term and long-term financing. We looked at literally tens of options before finally coming to the conclusion that we needed to split strategies.
We decided to forego the lending on the manufactured home entirely and pay cash to flip it on the retail market (there are lots of lenders who will lend on manufactured homes to a primary home owner). The single family home is a BRRRR using a hard money lender to be refinanced in 3-6 months.
We brought a JV partner to bring cash for the flip and will split proceeds.
Deal outcome
TBD, with both properties undergoing rehab as of November 2021. Early numbers appear to turn out very favorable results.
Single Family Home (BRRRR)
Projected Numbers
Purchase: $65,000
Rehab: $11,000
ARV: $110,000
Rent: $900-$1,000
Actual numbers
Purchase: $65,000
Rehab: TBD
ARV: TBD
Rent: TBD
Manufactured Home (Retail flip)
Projected Numbers
Purchase: $65,000
Rehab: $26,000
ARV: $170,000
Rent: $1,600-$1,700
Actual numbers
Purchase: $65,000
Sale Price: TBD