All Forum Posts by: Corey Woodruff

My partner and I have a mobile home park under contract and the lot rents are under market and when we close we would like to bump the rents from 280 to 300 per month. Question is if the tenants are in a year lease at 280 a month can we raise the rents to 300 after closing. If so, how would we go about doing that??

is there any sites or articles of information that would be good for my partner and I to look into before purchasing a mobile home park. I am buying the mobile home university due diligence manual and possibly the operating manual from them as well. 

thanks for any input you guys have to help us through this. This will be our first one and any help is greatly appreciated.

Yes i can get all the utilites into the tenants name, that would decrease expenses dramatically. The rents are way below market price so I would increase them upon purchase. The deal is very tight but after 6 years the two triplexes are paid off and that gets me excited. 

Thats true i had all the numbers written out on paper and did not put cap ex in the formula. Yea I agree with you on everything you said the only reason I really would like to make the deal work is just because i dont have to get financing for them. So even after the rent raises then factoring cap ex and PM expenses you would say no go on the deal? what would you do in this specific circumstance

thanks for taking the time to review this though and i appreciate all feed back 

This is going to be a subject to deal. It is closer than I usually would even consider but since I dont have to get my own financing I am considering it. They only have 10 years left on the note and then I will own it free in clear. So my motivation is that in ten years it will cash flow greatly! 

what do you guys think ??

https://docs.google.com/spreadsheets/d/1AVoICWBDjs...

follow that link i have all the info you would need to tell me what you think, am i missing anything

Good luck post the numbers so you can get as many eyes on your deal as possible?

thanks so much im checking them out now. @Manny Cirino

I am Michigan and I was wondering if some people could join in and give me some good sources to find multi family properties???

also i have no problem finding the owners names and addresses when i look on the tax assessor site but is there a way that people are finding phone numbers so that i can call these people instead of send yellow letters??

thanks for any and all help I appreciate it a ton!!

you will want to base your offer from the actual income not what the future income potential is. Most sellers try to base there asking price from the future income potential ( this is pretty much them saying that your going to raise the rents and manage it properly, we love the compliment lol) but honestly it doesnt matter at all what he listed the property at or what he thinks the rents should be, it ONLY matters what the rents were for him the past twelve months you should ONLY base your offer off of those numbers and the cap rate.

hope this helps

base your offer of the income that the multi unit produces instead of the listing price net operating income/ cap rate should give you a fair offer price that would be good for you. Most times the sellers sell their multi unit property based off of future income potential instead of the actual income that it should be based off. Read abcs of real estate by Ken Mccelroy before you purchase this property it will open your eyes to so many things and it will quite honestly save you thousands of dollars and headaches. Do yourself a huge favor and read that book. also is your cash flow number also taking into consideration the monthly mortgage payment as well because the 50% rule usually doesn't account for the mortgage payment. Good luck keep me updated

price:

expenses:

utilities:

are the utilities in the tenants name or the landlords name.

Please keepme updated I'm new but I would love to help you out on this and make sure you have two sets of eyes on this deal so you get a good deal