All Forum Posts by: Chad C.

Does having a lease purchase on a home (where the leasee is responsible for repairs and maintenance), make the owner have less liability? If the renter is responsible for repairs and maintenance, it seems that it would take some liability away from the landlord.

Thank you guys.@nathan G that is basically the same scenario that she had for the reason that she doesn't deposit the same month. I think she has been doing this for 20 years or so. I did look back at our contract and in bold it does say that checks will be issued no later than the last day the month, so that hasn't happened for the two months we've been in agreement. They also didn't send me an owner statement last month, just some general deposit slip. I am tempted to see how long they will go before they pay me, but now that I see that the contract says the last day of the month, anything later is unacceptable.

There was no agreed-upon date, and they may be open to something different. I am just unaware of what the norm is. Just in three replies you have one "insane", and one "this is typical". When considering a line of credit that I'm using it is about 15-30$ in interest or .25%, but it's not like I'm paying that each month, it was just for the one month that it was delayed, right? Also I consider what I could do with the money to grow it. I think it feels a lot more worse than it really is. It just seems like I skipped a month when I transitioned companies. I'm sure it also helps them if there are any expenses towards the end of the month they can take it out of the rent since they still have it.

Someones making money from them. The ones you're talking about have the highest potential returns, but also have the highest cost and vacancies. So the stability, and predictability isn't there.

When should PM deposit rents? I have a new PM company that deposits rent the following month. So rents on the first of October aren't received until the first of November, and I still haven't received rent from October, and its the 5th. My last PM was an individual who deposited rents a couple times a month but he left the field. Their reasoning was to make sure checks don't bounce, which takes what, 3 days. I am trying to be patient with them because they seem to be a larger more established company, and I expected them to be better, but there have been a few red flags.

I have a tenant that has had some water damage due to a leaky roof, and at this point the damage is quite extensive. The tenant has been in there for eight months, and I have owned the unit for six months. They said that the drywall was saturated and crumbling in an 8x12 area, and the repair man said the leak has been going on for a while, possibly before they even moved in, but I didn't notice it when I bought it. I'm going to replace the roof, which is my responsibility. But the question is the extensive damage that's done to the inside, that 8 x 12 area needs new drywall, studs, and rafter sill plate. The lease states that they are responsible for this, but strategy wise, I think I would just push the tenants away. They would leave, I would never be able to get the money, and I would be without rent for a few months. These are very low income tenants. I should be able to keep their security deposits. Do y'all have any examples where y'all made tenants pay for damages, and it was for the best, or worst?

so by your calculations his note is about  9k a year, and he makes 10k a year.  That is 111% return. 

He said he is paying cash anyways, so his NOI is 20k so that's a 27% return.

I don't see how expenses could be 50%  you should only be paying property taxes, and the tenant should be paying the rest.   You can  remodel a mobile home from the studs for about 8k. and you will have very little repair cost if you do a lease purchase\owner finance. 

 You can buy $11,000 trailer and do a lease purchase for 2K down and 650 a month. That first year you will make 9800 off of the trailer.

 making 650 per door, there's so much margin in MH.  People dream about 2% rule . But with this scenario he could be doing 6%.  Mobile homes have lots of repairs, because they use cheap materials, but that also means they're cheap to fix, but will need replacing sooner. 

Imagine if he used leverage, a 75k note, payments of  9600 a year, income of 39k. 9600 to 30k.  That's a 300% return!?

I hear people valuing mobile home parks at lot rent times  40 to 60 months rent. so 200 X 40 to 60, times five 

40-60k

That's not a deal, that's a steal!  

My cost where I'm at are about 20k a lot, but could get 800-1000 rent.  This is for .4 acre lots.cost of land Modad, roads, sewer hookup, land clearing, cost to subdivide. 

If your lot fee is 200 and you can get a trailer for 11k. 650 a month  would pay both off in 24 months. That's a 50% return!

5 septic tanks are wort 12500

 But the previous poster is correct on questioning why they would be selling. Maybe it's hard to keep them filled, or really bad area, and you might not be getting 650 a month. But even at 450 it would still be a good deal.