All Forum Posts by: Allie J.

Thanks for the input everyone! I'll check in to those. Much appreciated!!

Hi all, 

Can anyone recommend a good property manager in Little Rock? I have a property I am interested in and the current PM seems to be awful. I'd love to get the input of someone who is hopefully a bit better. Let me know! Thanks in advance! 

Allie

@Jeff Reynolds Thanks for reaching out! I will get in touch. Looking forward to chatting.

 @Brandon Halley thanks so much for the reference! Much appreciated.

Hi BP, 

Can anyone recommend an agent for Durango, CO who is also an investor? 

Thanks!

Allie

Hi all,

I was reading this article here: 

https://www.realpage.com/mpf-research/size-matters...

and feel like their graphs and whole story is pretty skewed. Just because their expense ratios peaked around 08 doesn't really mean the expenses have gone down since then - it's just that rent probably was at a low in 08 and is now recovering? 

I am still new and trying to make sure I understand all these metrics. Am I missing something or is this article somewhat misleading? 

Thanks in advance!

Allie

I sent the realtor an email with these questions last night. He just got back to me that it's now under contract. Nuts. 

Regardless - I really appreciate @Matt Boettinger and @Account Closed input. Very, very useful thoughts. I will carry those concepts forward in future deals I look at. 

Thank you!!!

@Account Closed

The itemized expenses (annually) are: water+sewer = 5,200; insurance = 900; tax = 1,494. They included a hand written maintenance record for two previous years. One year, they attest they did 0 dollars worth of maintenance. Another year, $1,340 (all on the house).

Great point in factoring in vacancy on the home. In your opinion, would you factor that in for the trailers as well? Or not as they are tenant owned? 

One final question, are either of you aware of some sort of rule of thumb for expense ratios for a park that is fully tenant owned vs fully park owned (i.e., park owned the expenses are 35% of gross rent.... while tenant owned average 30%..... or something along these lines). 

I just also feel that the expenses seem low, but don't know how to take into account that there is only the house to take care of (maintenance wise). 

Again, that you both so much for taking time to chime in. This would be my first deal (if the numbers work out) and I really appreciate your thoughts. 

Allie

Hi BP!

New investor here, looking to get into my first multifamily. I am particularly interested in a small mobile home park. I have found one and thought I would ask if any of you have any input on these numbers. As I am totally green, any thoughts are much appreciated:) 

-Located in PNW, for sale for 170 k. The sellers are "motivated," so it was hinted that any offer will be taken seriously. 

-It is a small (6 mobile home) park, and there is one single family home (7 total units for rental). All mobile homes are tenant owned, and supposedly stable/clean long term tenants. 

-Lot rent is 250. House rent is 600. 

-The park is on city water and sewer, so no lagoons or other gross stuff. The pads aren't individually metered, so I would look into what it would take to get each site on its own meter with the city.

-The approximate annual numbers they gave are: 

total rent = (6*250+600)*12 =25,200 (they did not include vacancy)

total expenses (water sewer trash taxes insurance maintenance) = 8,934

-Assuming these are right, this gives an NOI of 16,266

-Assuming I did 50k down on the 170k (which I think I could get lower PP), that would give a mortgage of 681/month at 5.5%.

-This gives a monthly cash flow of 631/month or 7,578/year. A cash on cash return of 16%? (~8k/50k)? And a cap rate of 9.6%. 

Any comments at all would be appreciated! As I'm writing this, I'm thinking I need to go ding this for vacancy (duh!). Are there any other obvious omissions from these data? Questions I should ask the sellers? 16% obviously sounds pretty nice for a supposedly easy to run park, so I am wondering what the "catch" is. 

Thanks in advance for any thoughts!

@Brandon Halley Fair enough. But your first comment makes a lot of sense. Definitely a lot of red flags there. For my first potential investment, that's also kinda scary. 

Looks like they've dropped the price 19k though - it's down to 110 now. 

Anyway, thanks for the feedback and response!

@Steve Ko @Brandon Halley

Thanks so much for your 2 cents! I didn't have the best feeling about this place either - I'm glad to hear that confirmed. I appreciate you guys weighing in! 

Allie