All Forum Posts by: Brandon Siewert

While my preference is SFH flips, I've discussed with a few different niche investors and a couple of them have done pretty well in Mobile homes. I can see the disadvanatages but I was wondering if anyone on here has any personal experience with this market

Granted I have not purchased a MHP, but in my multil family experience when we're helping a client determine the go or no go of a deal we like to start with settling either on a sales price or determining what the sales price should be offered. NOI and occupancy is not very relevant if the purchase price is out of line.

If they wont settle on a sale price you have back into the value with a review of the rent roll and operating expenses...certified by a CPA or similar. The other thing I caution clients is NOI is generally minus the debt obligation so just because you may get a 10 cap on paper, if you're debt takes a chunk of that the actual return could be less than stellar

The plus side is increasing the rents.  If the Owner hasnt increased rents in 10 years to keep 100% occupancy, most likely the leases either renew month to month or they sign new 12 mo leases and the terms probably arent all that complicatied so increasing income value may not be that difficult.

Sounds like the deal may have some merit and I'm sure you know the details of which comments have been made so proceed cautiously and keep us posted on the progress

@Sean Richway about $26k

I'm looking at foreclosure $244,900, needs about $20,000 in updates, nothing major. 2 recent comps $355-425K, the subject house is estimated $393K ARV.

I have flipl analysis and property info for any one interested.

I've always been moderately interested in mobile home real estate and since I've been on bigger pockets, I've become even more interested in buy/hold, buy/rehab.  I'm pretty familiar with  traditional home values or at least where to look and who to contact, but how can I find MH values?

Wholesaling seems like a lot of work to me but they are a legal part of the market equilibrium. Much as. Option traders, margin investors and speculators are to the stock market and commodities exchanges.  If you do not want wholesalers to be involved in the market invest enough in the market for the need of wholesalers not to exist but it seems like an unnecessary if not futile endeavor. 

I'm not familiar with Maryland LL tenant laws, but I would do what you are doing with the AC unit.  You've made reasonable accommodations and should not be liable for their hotel expenses.  I doubt Maryland has a law requiring AC repairs to be an emergency.

Let him call the police, it is not a criminal matter and they'll tell him that on the phone. Go the baseball championships and dont lose any sleep.  Send him a 30 day notice of non renewal prior to the expiration of his lease.  If he refuses to leave after that initiate eviction.

Management is a lot of work, but know your LL Tenant, Laws, document everything that happens with every tenant, operate in good faith and you'll be fine.

I think Realtors are invaluable resources, but finding one that works well with investors has been difficult in my experience.  Either they are already seeking out deals for themselves or they arent familiar enough with how the financial process differs from occupant home buyers.  In general most know their market and are very valuable when it comes to closing the deal and completing the paperwork correctly.  It also provides a barrier between you and the seller.  It could, however, take as long to find a good fit realtor as it does to find the right deal.  

First step, is to quit using that HVAC company.  Consult your LL Tenant Laws, most states have very specific rules for when/what/how repairs are to be reported and addressed.  Also, in most states of which I'm aware do not provide any terms in which rent can be withheld, but rather provide for termination of the agreement if the Landlord does not uphold their requirements.  Typically, water and heat are the only items that are considered to be an "emergency" that if unattended could be cause for action agains the Landlord.  

If they continue to withhold rent, I would file eviction, if you have everything well documented.  As for the HVAC company, as the Owner of the property, if you did not authorize the repairs you could simply refuse to pay the charge or take your lumps, pay the charges and lose their number.

If you're adhering to the LL Tenant Laws and have good documentation you will have the most leverage but I'm not specifically familiar with Florida laws.

@Dion Dipaoli: thank you very much for the input, it confirmed what I hoped was my understanding and provided even more useful advice.  I had a kind of a hard time selling it conventionally and  was running out of cash so this scenario seemed the lesser of several evils.

Once I get the CFD completed, if I decide to then sell the entire property out right, I would just sell it market value, I understand what you mean regarding inflating value based on payment.