All Forum Posts by: Brandon Miller

@Khizer Husain This is based on lot rents alone on 14 of the 19 units. The other 5 units are owned by the park. Also, the 7 apartments are of course owned by the park.

Please PM me and I can send you more information.

Hello,

My partner and I are in the process of getting an off-market mobile home park under contract. The park has 19 lots, a 4-unit building, a 3-unit building, a two-car garage, and a one-acre lot fenced in and ready for expansion. 5 of the mobile homes are park owned, 9 are tenant owned, and 5 have been converted to RV lots. All lots are on city water and sewer. All units are individually metered but the current owner pays all the utilities.

The park is located about 1 mile from the local city business district and is within 30 minutes of downtown Cincinnati.

All but one unit is currently rented out. The seller does not have leases in place and several people around the park help run it. This person is older and interested in selling and getting out of the game after 30+ years of investing. Most mobiles seem older but the park is not run down and the streets are clean.

We would love to purchase this property and slowly stabilize by charging the tenants utilities and bringing rent to market value, however, we have no experience with this. We have a limited expereince with single family flips and multifamily rentals but this is much different.

My analysis shows that currently we are buying this in the Cap Rate range of 16-18% including 5% maintenance and 10% for management. My question is, being in the midwest and given the fact that this property probably needs some work, what Cap Rate could we expect to get for this property once stabilized? We are debating how to proceed. We are considering an assignment of the contract and just making a fee because it seems like a lot to handle.

Additionally, the fenced lot seems like a fantastic opportunity to develop self-storage but again, we have no expereince. (There is a relatively new self-storage about 2 miles away.)

Thoughts?

Thank you for your thoughts!

@Peyton Zachrich This meet up sounds like a really great opportunity and I would love to participate if you have not filled up your guest list. While I only have 4 units at the moment, I have plans to expand into the double digits and beyond in the next few short years. Let me know if I can assist in the planning of this as well!

I am an engineer from Cincinnati and investing in Cincinnati looking to expand in the MF space over the next few years.

@Joseph Cornwell Thanks for sharing your goals for 2020! You definitely have your work cut out for you, and I am sure they are achievable with the right "why." As requested (yes I read to the end), I will share my goals for 2020. I have several real estate goals for 2020 but first I want to tell you a little about my experience so far.

I bought my first duplex in 2018 which is an owner occupied with an FHA loan because I was fresh out of college with little cash. In 2019, I partnered with some family members and went in equally on a second duplex in the same neighborhood and only about a 5 minute walk from my house. Looking into 2020, I would like to acquire 2 more units (with my partners) to continue to grow and learn. I also hope to expand my team and begin to build out a list of contractors and handymen that will help me succeed in the coming years. I would like the next 2 units to be a BRRRR strategy, but I am open to whatever opportunity arises.

Beyond 2020, I would like to incorporate the STACK methodology and begin to double down on the number of acquired units each year until I have reached over 30 units, at which point, it may be time to move into even larger MF. My goal is to "retire" by the age of 35, which gives me a little of 10 years left to get there.

Given your success and knowledge of the Cincinnati market, I would love to pick your brain in the near future! 

All the best with your #2020goals!

A belated Happy New Year @Colleen Pelliccia-Lavin! I am investing in small, multi-families in Cincinnati and would love to connect regarding my strategies and goals for 2020.

Hi everyone. I am also from Cincinnati and invest here in small multi-families. I am currently looking for a team of contractors to help me achieve my #2020goals! I am always open to a good conversation about real estate investing. 

Hi @Krison Katsetos and welcome to BP. I am also a new investor in the Cincinnati area looking to grow in the coming years. I would love to chat with you regarding your strategy / goals for 2020 and what you think of the Cincinnati market going forward. I grew up in Cincinnati and have a pretty good understanding of many neighborhoods.

Either way, best of luck to you and way to take the first steps!!