All Forum Posts by: Jonathan Hayek

Hi folks - 

Long time lurker, but infrequent poster. I'm learning about HMPs, and would love for you to chime in on this deal. 

Price: $795,000
Community Type: All ages
Number of Lots: 22
Current Occupancy: 86% (19 Mobile Homes) 2 vacant lots, one unit in the process of being certified 
Average MH Lot Rent: (Tenant Owned) $325
Average MH Rent: (Rental Units) $768.75
Animal Fees: $25 Per Dog: Current revenue from Dog Fees is $300 a month.
Size: 4.24 Acres
Gross Income: $98,400 + $3,600 (Dog Fees) = $102,000
Current Monthly Rent Roll: $8,200

Market Cap Rate: 7.8%

The seller also says there is an additional undeveloped half acre that could be used for additional homes (8) or RV/ boat storage, etc.. County sewer and water. Tenants are billed back via RUBS and 90% of utility costs are recouped. Electric and gas are billed directly to tenants. 

What do you like? What red flags do you see? Thanks! 

Hi @Joey Zee, welcome to the Cheyenne area. @Bill S., is right, we have a monthly REI Meetup group that is very helpful and a good community. Third Tuesday of the month, location varies. https://www.meetup.com/Cheyenne-Real-Estate-Invest...

Cheyenne rentals are tough when buying at sticker price for median home values, like you've seen. The better opportunities are rehabs/rent, house hacking, and possibly short term rentals. I've had some success with a furnished rental. I've mostly had contractors with the Railroad or the Air Force Base, and know others have has success with travel nurses (typically 3 month contracts). 

Good investors/agents in town are James Bowers with Coldwell Banker and Pat Ruud with #1 Properties. I know both of them see duplex/triplex properties that would be good candidates for house hacking.