All Forum Posts by: Chase Louderback

In a little over 1 week we will have our monthly Harrisonburg Real Estate Investors meetup. This month we have Kyle Miller speaking on his Fix and Flip Business. Kyle is a local investor from Charlottesville, VA and flips around 20 houses per year.

If you are looking to get started or take your real estate business to the next level, you won't want to miss the opportunity to hear him speak about his systems and pick his brain!

We will be at the Funkhouser Real Estate Group building in Harrisonburg, VA. Check us out on the meetup app or respond/dm me if you would like to attend. We will be in the lower level conference room which you will have to enter from the rear of the building.

@David Abarca Frank is projecting that since the property is water/sewer RUBS there would be roughly a 30% expense ratio. Therefore, you would multiply by 0.7 in order to get 70% of the total revenue which would be your NOI.

Agreed with @Wayne Brooks, the market you would have to be bringing the home into would have to be insane to make the numbers work.  That's assuming that you already have a lot of land to place it on because if you brought it into a MHP then you are going to have lot rent which will still kill your numbers.  

Also, if you did have a lot of land ready to go in your new market, then there would very likely be a better higher and best use than putting on a 600 sq ft 1 bd Mobile Home.

Please join us on next Wednesday the 19th for our meeting on funding your deals. Whether you are looking to flip, BRRRR, or simply buy and hold, we will discuss different ways to fund your deals so you can do your first (or next) deal. Feel free to comment if you have any questions. This event is FREE

@John Chason

As Greg noted, there is generally less 3rd party management for MHPs, so even if you have a large park, you will still have to have systems in place to manage the park manager.  That being said, there are several other niche factors in operations and valuation for multifamily vs MHP, but MHP have less supply in solid markets which is makes the ability to scale much more difficult.  What are your goals?

@Ben Kornblatt Our next meeting will be on June 19th, same time and place.  Will have an event posted here on BP in the next couple of days.

@Justin Knighten  Are you looking for rentals or flips?  You may find value in coming out to our monthly meetup in Harrisonburg to meet other people that are in the market.  Our next meetup topic is Finding Money For Deals on June 19 and we will have Kyle Miller guest speaking on his house flipping business on July 17.

@Bruce Park

I mean operator as the individual(s) that will oversee the property management and turn around project.

Sounds like you are getting a solid team together!

@Thomas Dunleavy

You should get more information on the financials.  As everyone else above noted it should be around 50%, but I have found them to be even as high as 60% on these 1bd/1ba style properties.  Like @Charles Soper noted, this is because it attracts a more transient crowd that may also put more wear and tear on the property.  

That being said, look at what you can push the rents to and see if you can get a PM group to manage remotely so you can rent out the 14th unit and generate revenue from it. If you increase the NOI say 6k/yr just due to renting out the 14th unit then you are increasing the value ~$100k at a 6 cap valuation. ($6k / 0.06% = $100k)

Hope that helps

@Bruce P.

Will your potential "sourcer" also be your operator?  Assuming this is a decently size multifamily property (30+ units) and you are bringing capital from other investors, it would be really important to have an experienced operator for the first deal or two.

As others have noted for #2, you can structure the partnership anyway that you please.  If you are trying to establish a long term partnership, then you can form a holding company that will then own the individual entities for each property.