Snapshot
Property: 512 & 516 Sunshine Drive, Rocky Mount, NC
Type: I bought 2 identical single-wide manufactured homes in Stonegate Manufactured Home Community
Purchase Date: December 2016
Sold Date: January 2020
Purchase Price: $62,506
Set Up Costs: $19,356
All-In Cost: $81,862
Financing:
Original Loan: Two Navy Federal equity loans (secured by Belmar & Rodeo), $70,000 total at 8.5% fixed
Refinance (Dec 2017): Rolled into one loan on Belmar, $71,250 at 4.75% fixed
Annual Rent: ~$14,494
Net Annual Cash Flow: ~$5,615
Lifetime Performance: –$20,000 net loss
How I Found the Deal
Through Avery’s job in Norfolk, VA, we connected with successful manufactured home investors. They owned and managed a clean manufactured home community in a working-class neighborhood in Rocky Mount. After learning about the steady demand for affordable homes in this area, we decided to purchase two new single-wides directly from the manufacturer and place them in the community under their management.
Lessons Learned
1. Market Analysis Drives Asset Choice
In Rocky Mount, demand for affordable housing was high, and manufactured homes were a viable solution. The market fundamentals were solid — slow but steady job growth and a working-class renter base. On paper, this deal made sense.
2. Creative Financing Expands Options
We tapped into equity from our first two properties to secure two Navy Federal equity loans. The following year, after Rodeo appreciated, we refinanced into a 30-year loan at nearly half the interest rate. This was my first time leveraging equity to buy more properties.
3. Cash Flow Without Appreciation Can Be a Trap
While the homes generated decent annual cash flow, we didn’t own the land underneath. Manufactured homes depreciate, and without land, the long-term value simply wasn’t there. When we sold in 2020, we realized a net loss of $20,000 despite positive monthly cash flow during the hold period.
4. Property Management Quality Is Critical
We struggled with poor management systems in the community. One leaky toilet was “repaired” three months in a row without anyone realizing it was the same issue. Owner statements were confusing, and as a result, I found myself micromanaging from afar. This frustration was a major reason we chose to exit.
Key Takeaway
Not every deal is a winner — and that’s okay. This deal taught me:
Positive cash flow isn’t enough if the asset doesn’t appreciate.
Owning the land matters.
Strong management is non-negotiable.
In real estate, losses are sometimes the best teachers. The $20K I lost here saved me from making much bigger mistakes later.
