All Forum Posts by: Bill W.

@Cameron Ellis Congratulations but a word of warning. What you did by placing the postcards in mailboxes is illegal. On the small scale you did it, you're less likely to have repercussions, but your plans to expand could cause you problems.

"By law, a mailbox is intended only for receipt of postage-paid U.S. Mail."

USPS statement

@Belinda Lopez Might not be relevant now because the sale might not be happening, but, unless there's some way to check records at TMHA that I'm not aware, I believe you are referring to a different entity than Matt suggested.

Texas Manufactured Housing Association is the lobbying group for the industry. You're most likely referring to the Texas Department of Housing and Community Affairs, the state agency that handles ownership records and compliance.

I currently have this property under contract and am in the option period. Taking a closer look, there is going to quite a bit more to rehab than I originally thought. I had the inspection and it revealed several significant issues. Unless the seller is willing to come down in price substantially, I most likely will not purchase this property. Thanks for all of the comments and feedback earlier.

@Marty Mason $125k? wow.!! That is an amazing return.

Few questions for you. Was there land included in the sale and, if so, how much? Was the home considered real property? Did the buyers get a loan through a traditional bank?

Congrats on the grand slam deal.

@Dustin Hope

I had written a fairly lengthy response on the previous thread, but by the time I hit send, the thread had been zapped and my response along with it.

Few points that I remember. The park looks like a good deal to me and I'd jump on it if it were in my area. Are you counting insurance twice? Management looks low.

How are you calculating Gross NOI? Your figure doesn't look right to me.

Are the rents at market? If you could increase them to $200, you would double your cash flow.

Good point. It cash flows as-is so I'd probably let the current tenants renew until one side emptied. At that point, I'd likely raise rent so the other side empties then do renovation on both sides during the same period.

Jeff, I am probably being conservative on the ARV rents and price. I tend to do that in my analysis.

Glad to read everyone is on board with this deal. I'll keep the thread posted.

Immediate area is still a little rough. The block it is on has not completely flipped yet.

The lot is just over 1/4 of an acre.

rough estimates for expenses would be as follows

Taxes = $185

Sewer/Water = $0

Trash = $0

Heat/Utilities = $0

HOA = $0

Capex/Ops = will need to do research

Ins = $90-100

Management = $115

Vacancy = $115

I'm looking at an off-market duplex in Austin, TX 78723 zip code. The gross monthly rent is $675 for each side. Both tenants are Section 8.

The home has a new roof on it, but other than that needs a lot of work. I estimate that it will need about $15k to make it presentable. The home passes Section 8 inspection, but I'm actually surprised that it does given its condition.

Once improved, the home would bring in $775-825 a month for each side.

It's in a really hot area of Austin with property values skyrocketing. Comps are a bit difficult because there haven't been many multi family houses sold in the last six months in that area.

Purchase Price: $99,000

Gross Rent: $1,355

Required Improvements: $15,000

Market Rent w/ Improvements: $800 +/- $25

ARV: $140,000 +/- $5000

My plan would be to hold and continue to rent as it is and when each side emptied, improve it and increase rent.

Thoughts? Questions I should ask myself?