All Forum Posts by: Chad McMahan

From what I can see, the numbers keep getting better in Sedona. I hear concerns of saturation, but I'm not seeing it- Based on demand and the trend of increasing demand VS rental supply. My clients are seeing a strong ROI with high occupancy rates.

Hi Mitch. I have quite a few clients who have purchased Sedona rental properties, through me. The short answer is, you cannot buy just any property in Sedona and have a great ROI. 10% of the homes, available, are good rentals. 1% of the available listings are fantatsic rentals. If I can help, let me know.

While you won't be able to purchase at that price point in my neck of the woods, I would be happy to point you towards some great realtors  in the Cave Creek, or general Phoenix area, where you should be able to find something.

For a 2001 manufactured home, you should be in great shape for the next 10 years. I recommend you avoid/sell anything getting into the 1980's, so your buyers (when you sell, still have a buffer of financing options). If it's over priced, I'd say avoid it. Have you gotten an opinion on price from a local realtor?

Hi Christopher. I have quite a bit of experience with manufactured homes. A 2001 should be fine. Have it inspected by a home inspector, or at least a contractor (or trusted handyman). Have it inspected for pests.

Manu homes start to degrade more quickly when they hit 20-30+ years old. That's why they are harder to finance if they are 1980 or older (I work with some lenders who finance as old as 1976, but most manu lenders only go to about 1980-1984 or newer)

If you plan to finance, I'd get more info from a manufactured home lender/broker. They should be able to send you something. If you plan to cash purchase, there are plenty of resources online if you surf the web.

Hi Bradley.

In some markets you receive positive cash flow, some you do not. If you have a market in mind, I recommend you connect with 2 local agents that are vacation rental savvy (Ask the managing broker for this kind of agent) and ask them about ROI and cash on cash returns for their top recommendations in your price range. They should be able to email you a few and estimate gross and net returns. If it sounds promising, get a 2nd/3rd opinion form a local vacation rental management company.

One warning- don't automatically go with the agent who gives the highest ROI and cash on cash return numbers- go with the most experienced and informed. Unfortunately, there are agents who will try to buy your business with high numbers. I'm a realtor and I look around and see it every week.

Hi Dylan. From my experience- there is no such thing as too good to be true. The important part is your due diligence. It sounds like you might have stumbled upon a "cash cow".  I would recommend you run it by a local management company, to confirm rent. $1025 sounds like it might be a bit high, but close. Also, repairs might be higher than you expect- I recommend you have a contractor or handyman come out and walk it with you(Should be free or cheap to get a bid). Also, make sure you pay for a home inspection and pest inspection, if you get it into contract. Inspections should be a total of about $300-$400.

Bring a Flagstaff realtor into the deal and get a 2nd opinion.

If it checks out, I recommend keeping it as a rental and maintaining the home so it doesn't fall into disrepair.

Make sure your tenant is financially qualified and I recommend no criminal background.

A few things about mobiles/manufactured:

They need a bit more maintenance than site-built.

Qualifying for financing can be tricky if they are older than the late 1970's. This is important, even if you are a cash buyer, as one day you will sell it and might need a cash buyer (This is fine, if the price is right and it's in good shape)

Go light on the upgrades. Keep it modern-ish, but it's tough to get your money back out.

Jump on it and Good luck! Fortune favors the bold.

This is hot topic, to be sure. My advice is to make a list of suggested areas and do your own independent research to determine the best next market for you. I recommend calling two real estate companies/offices per town, asking for the managing broker and asking the broker to connect you with a realtor who specializes in working with vacation rental buyers. Ask those 2 realtors about the market and what return you can get. Ask for vacation rental proformas on 1-2 properties they recommend in your price range. If something sounds good, run it by a local (to that town) management company and get a 2nd opinion on the proforma(s).

This will help to take bad advice and chance out of the equation. If you have more questions, I'd be happy to help.

Mark Twain would disagree with me, but I would discourage land as an investment, compared to income producing property. Perhaps transition from short term to long term property so your turnover is largely eliminated and the frustration decreased. Just make sure you buy in a  market with decent appreciation. 

Good luck!

Split floor plan, foosball, ping pong, updated kitchen, hard floors, king size beds, pool, hot tub, distance from restaurants/etc, views, on-site amenities, quiet, quality furniture, hammocks, hanging chair(s) (recommended, as they are cheap, but install correctly for 300 pounds) , sq. ft., BBQ (list supplies provided), kitchen supplies, full size fridge and other kitchen equipment listed, laundry equipment/supplies listed, any games/activities provided (horse shoes and bocce are cheap and desirable), wifi

These are all pretty desirable and will help put you above the rest. Tenants want to know their stay will be relaxing and easy/convenient. Even if your competition offers these, they may not be listed, so yours will seem to offer more for the buck.