All Forum Posts by: Corey Block

@Chris Coleman I usually do pay cash for these expenses, since they are typically pretty small...until this instance.  As for my reserves, I keep more than I probably need to but my lender has never questioned my cash reserves.  I have really never thought that much about it as most of my property is very recently renovated.  

Thanks for the info, I will start with 10% for now and see where that gets me.  

So, I have very recently discovered that I have made the grave error in not accounting for repairs and capital expenditures for my rental units.  I have owned investment properties for going on 5 years, currently own 18 units, and I have never encountered an issue that amounts to more than a few hundred dollars to repair or replace.  Maybe I've just been lucky, but I am a very hands on landlord and I feel like that keeps my problems to a minimum.  However, I recently had to replace countertops, floors, and some exterior rot on facia and soffit...all of which set me back several thousand dollars.  Usually this would not be a big deal since I keep more cash reserves than I would ever need, but I have recently spent much of my reserves on downpayment on another investment property and improvements to a mobile home park I purchased a few months ago.  

So my question to all is how much do I need to budget for out of each unit for repairs and capital expenditures?  I have read that some set aside 10%, 15%, or even 20%.  It seems like it may depend greatly on the age of the home and type (single family, mobile home, apartment, etc.)

Interested in any feedback!

@Zachary Bradigan - I am doing something similar to this as we speak. I recently bought a 15 unit mobile home park that was 65% occupied. The park consists of all older homes (2 of them were purchased with the park) and the park was pretty run down. I quickly began making improvements to the park itself and stumbled upon 3 FEMA trailers that were either brand new or very lightly lived in. I bought them and am in the process of moving them to my park and setting them up as Section 8.

I am in an area where the FMR far exceed what I could rent them for privately, and given that my lot rent includes all utilities except electricity, the Housing Office says that I should get very top dollar. This means an extra $350/month per home. I spoke with a few different local housing authority offices and made sure I got the same information from each one, because I shared your concern that a mobile home would not bring the same rent as a traditional house.

I hope this helps, but at least in my area (which is Southeast Texas), mobile homes are no different in the eyes of the housing authority. I will post an update in a few weeks once I get the houses set up and hopefully rented through Section 8

Mike, I would appreciate any contacts.   I have a few friends in the area that have moved houses and none of them would recommend the individual or company hired.  Also, if you have worked with house movers, any advice on things I should avoid or red flags with these guys?   By the way, the park is in Silsbee, TX and the house will be moved to another property in Silsbee.   

I am purchasing my first mobile home park, closing this week. There is a small frame house on the property that I would like to move to a lot that I am purchasing as part of another deal. I have zero experience moving a house. I am located in south east Texas. Anyone have any kind of experience in this area?