All Forum Posts by: Christopher Fordinal

My investment group is looking at adding RV/Mobile Parks to our portfolio. We are considering purchasing an existing park but we are also considering building our own. Has anyone ever built their own utilizing a loan? if so, what kind of loan did you get (construction?), how long was the term, and what was the rate?

@Jacob Miller STR = Short Term Rental (as in Airbnb and VRBO). You'll also see LTR which is Long Term Rental (as in more traditional year long leases). Hope this helps.

Wow I've been adding that wrong for months lol. Thank you for correcting me!

@Ken Latchers how did you go about identifying a market with those types of numbers? a 135K duplex grossing 70,000K is insane. 

 yeah Idk why but its not easy to find a total property tax (county, city, etc). Anyways, looks like the average rate is something like 2.5%? 

Haha yeah, paying taxes tends to have an imposing effect. 

@J Chad Davis that’s good to know. What tool do you use to determine the total property tax of an property?

@Josh Nigh yeah that’s what I’m finding. I was hoping I was missing something in analysis but it appears that I was running things correctly. Other opportunities are too good to be taking under 5% cap.

@Michael Baum good to know! We have talked to some STR landlords in Galveston and built our numbers from those conversations and our research. Ultimately I think Galveston just isn't a great market compared to other STRs. I appreciate the info Michael!

@Michael Baum yeah It seems like Galveston just isn't a great market right now. But I'm having trouble finding any STR markets that are giving me Cap rates over 3% so I figured I must be adding something up incorrectly.

Oh I definitely have included the Mortgage in calculations. I just didn't want to post my whole long excel sheet on the forums because that's a lot. 

@Michael Baum The cleaning fees are a pass through thing but if you are using AirDNA's data to help determine ADR then they include cleaning fees in that number. 

In Texas (from what I understand) they only take out the state tax (6%) but you still are responsible for paying the city HOT (if applicable. which in Galveston is 9%)

As for property taxes, take a random zip code in Galveston (say 77550), according to the SmartAsset property tax calculator (as well as Zillow) the property tax there is 1.925%. On a 200K house (which is really lower than you could get a decent property in Galveston) thats $3850 a year. 

Finally, $900 a month would be great but that's before you've paid the mortgage. The mortgage  on a 200k house (with 30% down) is $669 a month. So really you would be cash flowing about $215 a month or $2,590/Yr. 

$2,590/$200,000 home = 1.3% Cap Rate... not great. 

I may be missing something somewhere but that was my logic behind all those things.