All Forum Posts by: Bruce Turner

I would never do any maintenance on it myself as I don't have the time anyway, what I mean is since I am accustomed to managing tenant screening and collections for my 34 space mobile home park I and/or my wife would do that for these units as well.  I have a park manager that  is there to met with tenants and get the applications, but I do the screening.

I had a SFH that I tried to have a property manager fill for me once and after a couple of months sitting vacant, I fired them. They claimed they couldn't get folks that met my standards (non smokers, no pets, stable job history, no criminal background, and sufficient income). They got the applications but none that were good enough.

How much is reasonable to allocate for property management?  

That's not something I had considered previously because I've closely held to the belief that nobody will do as good a job as I will.

@Taylor L. No I don't think there is any replacement needed. I believe those are for telephone and cable tie ins and they should straighten up easily.  I do agree some additional posts could be used.

WIth out a doubt interest rates will go up after the 5 year lock in but so will rents so the increased rents should offset the rate bumps.  To my knowledge this is the case with nearly all commercial loans correct?  I'm not aware of any long term fixed rates available.

As far as exit strategy, I would plan to hold this for quite a long time unless I found it to be far more hassle than I desire.  Currently I own a 34 space mobile home park, and apartment ownership has a lower ROR and more hassle(in some regards).  I'm defaulting to apartments because It's difficult to find parks on city water and sewer available in my metro, and acquiring single families is so time consuming (1 door at a time). 

As a side note I think some of us forget that rates are such a bargain right now. In 5 or 10 years we will kick ourselves for not buying more properties when we could. I paid 10% interest on my first FHA home loan in the late 80's. Try to make the spread on that interest rate work!

@Michael Le Yes I was able to see the 2 vacants.  One just moved out, and the owner was keeping the other open for showings(I know not the smartest move).  No I have not viewed the leases yet and wouldn't bother until we got into DD.  

Most of the other leases I am told are over a year old and long term tenants and are now month to month.

Thanks @Michael Le , @Jeff Kehl , @Justin R. for your help.  These units are relatively new having been built around 15 years ago.  They are full brick wrap all the way around and each unit is submetered for water, sewer, and electric which they pay direct to the utility companies.

The only common area that the owners pay electric on is the entry/stairwell and night lights outside.  Based on the above do you feel I've added enough for expense ratio?  The units are in stellar condition from what I can see.  I was able to see 2 vacant units and they looked great.

These unit will attract the lower third as market rents just 5 minutes down the interestate would be $200 higher.  This is a small town just down the road from the "main town" but still part of the metro and it's seconds to the interstate.

I've posted a pic of one of the buildings, they are identical.

Hi eveyrone, I'm new to apartments so would love some input on the following deal:

2- 6 plex units with 2 bed/1 bath that appear to be in excellent condition with no deferred maintenance.  Located at the end of a culdesac within a subdivision.  All units on this street are multifamily, with most being duplexes.

I'm told owners need to sell and are motivated due to divorce and one of them is out of state now.

Current rents avg $525 and can be pushed to $540 and in fact a few have already been stepped up to that.  Owner would not provide schedule E but rather provided the following breakdown:

Potential purchase price is $450K

Potential Income at current rents: $75780

Expense:
Taxes: $6456
Insurance: $3300
Night Light: $348
Dumpster: $2136
Snow Removal: $1330
Lawn Mowing: $1044

I added:
Vacancy Rate at 10%: $7578
Repairs/Cap X at 10%: $7578

Leaves us with $46010 NOI

I can get a 20% down/300 month loan with a 5 year adjustable rate at 3.99% at a local bank I've done commercial loans with before.  Brings us to the following:

$46010 NOI
-$22778.71 Mortgage Pmt
$23232.00 /90,000 Down Payment for a 26% cash on cash return

Please look my numbers over and let me know if you think they need tweaking and if this is a good deal.  Also I wonder about buying in a subdivision with multiple landlords on the same street and if that turns into a wild west scenario.  The street is clean and it's a nice, nothing that concerns me at present with regards to the appearance.

I should add that these are located about 7 minutes from my house so it's very convenient for me.

Experienced park buyer.  Please forward NDA.

@Jordan Thompson

Check out www.mobilehomeuniversity.com as their boot camps have been a valuable resource in my education.  Well worth what they charge for study materials and the boot camps a must IMO.

Happy New Year everyone!

I'm a RE Investor near Cincinnati, Ohio looking to make connections.  I'm a GM for a manufactured home sales center in Walton, KY and a mobile home park owner in South East Indiana (Rising Sun). I'm looking add to my holdings so I welcome wholesalers, agents, or anyone that has  single family, multifamily, or mobile home parks for sale.

I'm primarily interested in long term holds but wouldn't mind some flips or jv deals as well.

Fellow Greater Cincinnatians let's connect!