All Forum Posts by: Ben Bymaster

If I were to invest in a mobile home park out of state, then how should I go about the management aspect? Are there property management companies that I can hire? If so, any recommendations?

@Aaron K.

@Michael Ablan

Thank you for your help! I will definitely try this.

I currently have a large list of properties that I'm interested in. These properties are multifamily, self storage, and mobile home parks. I only have the addresses to these properties, but not the owner names. Is there a way to get in contact with the owners of these properties if I only have the addresses?

@Charlotte Dunford

Thanks for your input, it seems like you're killing it.

What would you do if for some reason you couldn't add any value, but the property does have decent cash flow from the start? Assuming you couldn't pull a lot of money out but you can make the payments aside from the large balloon payment. Would you just negotiate with the bank to refinance into a non balloon payment loan?

@Ned Carey

Oh okay, I didn't even think about that, so thanks for the advice.

@Ned Carey

Thanks for the advice! 

"That puts that risk on you and you need to be prepared to deal with it." Assuming that I was able to keep the occupancy rate steady and the NOI stays relatively similar, wouldn't I be good to go risk wise? Or do you just mean if something drastic were to happen to the property and I wasn't able to pay the loan?

Thanks again for your response.

@Taylor L.

Oh ok, thanks for clearing that up for me. I appreciate the response!

@Taylor L.

Okay that makes sense. If you don't mind answering, what would be an example of a loan you would refinance into at that point? 

Assuming you didn't have a value add and it was just a constant 9.25% cap rate. Would you still be able to pay the next loan off in a decent amount of time and also have some cash flow?

Thanks for you reply!

Scenario:

 You're an investor who wants to buy for cash flow. You plan on holding the property forever. You buy a self storage property for $1,000,000 at a 9.25% cap rate. You put down 20% ($200,000), so the loan principal amount is $800,000. The annual interest rate is 5.85% and the amortization period is 30 years. You have 5 years until the balloon payment. 

This leaves the monthly payment at: $4,719.53

Total monthly payments: $283,171.80

Total Amount Paid: $1,026,213.62

Total Interest: $226,213.62

Balloon Payment: $743,041.82

Though it would be tight, you would be able to pay the monthly payment of $4,719.53 since the NOI is $92,500. This would leave $2,988.80 per month in cash flow, but how would you have enough money to pay the balloon payment in 5 years? Would this deal even make sense?

@JD Martin

Thanks for your input! This niche keeps coming to mind for me. I'm not exactly sure where to learn about this niche, but I'm definitely interested.