Oh B-1 can no beat

Calhoun Times - - OBITUARIES -

Now you’re think­ing, “Wait, are you say­ing you bought a sin­glewide mo­bile home for $250?” Yes I am.

I be­lieve mo­bile homes are one of the best in­vest­ments out there. Dol­lar for dol­lar, I’ve found very few things that can com­pete with the re­turns trail­ers bring. Our strat­egy on B- 1 was to do a Lon­nie Deal, which is where you buy a house for cash on a rented lot and then sell it us­ing an in­stall­ment sale.

Most of the time on a Lon­nie Deal, you do no work on the prop­erty. If it needs work, you sim­ply sell it as a handy spe­cial with a re­duced down pay­ment. But since we got this one for so cheap, we de­cided to work on it.

We got our ex­ter­mi­na­tor out and did a small re­hab af­ter which, we were all in for just over $ 2,000.

The first time we sold it, we got $ 1,500 down and $ 250 a month for a term of 42 months. How­ever, af­ter 10 months, the buy­ers moved to Florida and left us the house. Put that into your fi­nan­cial cal­cu­la­tor and see what re­turn you get. ( Hint: don’t for­get to sub­tract the down pay­ment from the ini­tial in­vest­ment when you en­ter PV. En­ter 10 months for N and $ 250 for PMT.)

Don’t be shocked when you see a triple digit re­turn. Like I said, as with most Lon­nie Deals, the force is strong with this one.

Be­fore they left, our va­cat­ing buy­ers put new cab­i­nets and coun­ter­tops in and even in­stalled new ex­te­rior doors. Gotta love that!

We put the prop­erty back on mar­ket, got an­other $ 1,500 down and pay­ments of $250 a month for — you guessed it — 42 months. This time, how­ever, the peo­ple only stayed six months.

You would think get­ting a house back would be a bad thing, but it isn’t. Ev­ery time we get a Lon­nie Deal back, we get an­other down pay­ment and start the pay­clock over.

So far we have had $ 7,000 worth of in­come on this house. Take out the $ 2,000 ini­tial in­vest­ment, and we are still $ 5,000 in the clear in only two years’ time.

When I went to se­cure the house this time, I no­ticed some­thing. The floors in front of the doors were weak. Do you re­mem­ber those new ex­te­rior doors the first buy­ers put in? They didn’t flash and seal them prop­erly, thus al­low­ing for wa­ter in­tru­sion. So now we had a choice: put it on the mar­ket in the con­di­tion it was in or fix it our­selves.

Think­ing it would be less work, we de­cided to put it on mar­ket as it was and sold it for $ 6,000 cash. But now I have to get to work re­plac­ing the cash flow we just lost.

With those pro­ceeds, I can buy enough Lon­nie Deals to dou­ble — or pos­si­bly triple — B- 1’s orig­i­nal cash flow. And now you know why you can’t beat B- 1.

Joe and Ash­ley English buy houses and mo­bile homes in North­west Ge­or­gia. For more in­for­ma­tion or to ask a ques­tion, go to www. cash­flowwith­joe. com or call Joe at 678986- 6813.

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