All Forum Posts by: Armando Carrera

Hi Tia,

I think a little more information is needed for you to get better answers.

1) Is this going on a property?

2)Do you need permits?

Does this jurisdiction require a block foundation? I ask because there are approved foundations plans that call out specific requirements (like strapping) and may qualify it as a permanent home. This would be a much more affordable route, again this would depend where the home is being installed. If not block is required you just need to cover the exposed home with hardi panel or vinyl siding. Ask questions where the home is going to be installed...

Wherever you are buying the home from should have approved foundation plans. They should be able to get them for you so you can get a few bids. 

Hope this helps!

Hi everyone,

Need some advice.

Will be purchasing another investment property but stuck on which route to go.

Purchase price being the same

Do:

15% down w/ 8% interest 

Or

25% down w/ 7% interest. 

I’m leaning towards one over the other but would like some feedback.

thanks everyone 

 HI Bretton!

Thanks for your feedback. We're still undecided as to which direction to go, but leaning towards LTR as we are thinking about this as a long term investment. Quite frankly, doing a STR or MTR does come with more hands on from us.

Like you mentioned, Ive also heard that STRs have taken a dip as well.

Thanks again!

Hey Stuart,

As someone whos worked in the MH industry for over 6 years, I can tell you it takes a lot of time and money to develop even a small parcel into a park. I currently work for a MH resort and the owner has 19 parks across the nation and always looking to expand. Hes got well over 8 figures, investors, contractors, engineers, an entire team, and still it takes years to hit the finish line. Making multiple trips to the city/county for approvals, to hearings, and countless other things I am not aware of. I dont want to discourage in your venture, but please be very careful and get more knowledge/mentors/investors/partners etc.

Good luck!

 Hi Walter,

Thanks for your response. I agree, with high prices and interest rates, it does make it tougher to cash flow. I have found a few homes where the numbers work and were in the positive (barely). My gut is telling to stick with LTR because here in the West Valley, rents are still high (surprisingly). For my wife and I, its about the long game. Were thinking in the next 5 years our other rental is paid off with some extra effort on our end, then that money helps us pay the next purchase much quicker etc.

Regarding home quality, we would only purchase a home that we could live in if necessary. If its ok for us it would definitely be great for renters since were so demanding.

Thanks again!

Hi Everyone,

Wife and I will be purchasing another investment home here in the Phoenix area. Id like some feedback on personal experience dealing with STR or MTRs in this market.

We have another investment home in the area that is a LTR and so far been superb. So were a bit nervous switching the game plan. We hear that a lot of investors in the area make a killing in that segment but were just not confident pulling the trigger and going that route.

How has dealing with Airbnb or furnished finders been?

Any advice would be appreciated.

Thanks for your time!

Hi Dave,

When MHP owners would reach out to us when they had an "open space" available, we would draw up a storage agreement. The park owners never gave us free anything. We would still pay a monthly lot lease (whatever amount agreed upon, typically a little less than what a resident would pay) because the park owners knew we were also making money on the sale of the home. Granted, it sometimes could be risky since the home may not sale as quickly as expected, etc.

I would contact local dealers to see if any of them would be interested in doing a spec home. You may even want to partner up, you provide the space, they provide the home and split the profit. Easier on the dealer since the monthly overhead is not there...

Hope this helps at least a little bit.

 Hi Alan,

Look into 21st Mortgage. Theyre the larges MH lender in the country and offer the most competitive rates. Theyre based out of Tennessee. 

Ive done plenty of deals with them both chattel and homes on permanent foundation.

Hope this helps!

Hi Travis,

Maybe his concern is that those tiny homes dont meet HUD standards? Park models are built in a factory, maxed out at 399 square feet but meet HUD standards. Tiny homes can technically be built in a "backyard"...