All Forum Posts by: Chase Louderback

I'm sure the way the real estate investing world is today that there are people out there that wholesale MHs.  However, you will probably find more people that will buy the home and then resell it to you.  

@Jomont Dotton While you are educating yourself here on BiggerPockets, you can browse some deals at Mobilehomeparkstore.com, Loopnet.com and CRExi.com.  Keep in mind that about 99% of those deals will probably not work for you. If you have any other questions feel free to reach out.

@Patrick Sears Great to see another Virginian on here!  We should connect sometime.

Are you looking to have the home in a park or on it's own lot?  I don't think I have heard of any lenders that will do that for a rental in a park other than 21st.  Otherwise, local small banks/credit unions in my area will lend on manufactured homes.  Double wides with permanent foundations are the easiest.  

Since you are in Virginia you may want to check out Alcova mortgage.  I know they have a program for double wides, but don't believe they will finance single wides.  

Feel free to reach out if you have any other questions.

I agree.  There would definitely be more activity as I didn't even think this forum existed for quite awhile.  It's current category seems counter intuitive for someone trying to find it for the first time.

To piggy back off this, does anyone have any preferred methods to find the contractors/workers for the rehab in certain markets?  Are you all just advertising on craigslist or local papers?  We mainly try to go through referrals if possible, but what do you all do if that option has been exhausted?

2% for that size is the most common that I have seen.

@David Elerman In addition to what @Theo Hicks recommended, most brokerages have a property management division.  If you absolutely can't find a group that specializes in property management, look for the local brokerage companies, call and ask them if they have a property management team, and then interview them to find the one you like best.  That is the only thing you can really do if you have exhausted all other options and your referral network.

@Tom I.

If your goal is to get into small multi-unit then why wait? The only thing to keep in mind is it may be a bit easier to sell a duplex than a 6-10 unit since only investors will be looking to purchase those. That being said, you can much easier control the value of the property by driving the NOI. Duplexes will only be valued by a market comp approach.

Why not go for the 10 unit and make sure the deal works with a property manager in place, then a lot of your risk will be mitigated

Cap rate is solely determined by the market. Investor's appetite for risk and acceptance of lower returns will drive cap rates lower (increase the market value of the property with same NOI). If tenants for a specific property move out, it will not effect the market cap rate but only the value of that particular property because of the decrease in NOI.

Hi @Carmela Gonzales,

Unfortunately it is not uncommon for the marketing materials to have lower expenses, no capex or even no management expenses (if the owner is self managing).  You just have to do your own analysis and offer what makes sense for you based on how it will operate under your ownership.

Regarding your projections from the first post, I would network with property management companies in the area to get a feel for what the per unit expenses will be for R&M, Contract services, etc.  You can also verify your management fee projections as it is likely around 8% for the size properties you are looking at.  Finally, it may be more useful to factor in a $/per unit/per year capex projection.  For an older property most will be projecting $300/per unit/per year.  For example a 10 unit would have you set aside $3,000/year for future capex.