All Forum Posts by: Cory Cox

So, I just so happen to come across a mobile home deal today.  Hoped on here to see what the community thoughts were on them.  Do you have a website for this course?  Also, is this strictly for operating mobile homes?  I entertained the idea of bulldozing this and building apts on the land.

Thanks for all the feedback everyone!  That is obviously a misread on my part then.  I will get a hold of one here in town today and try and figure out the best plan of attack.

Can someone just confirm that I'm thinking correctly on this matter that just came up please...

I'm buying a duplex here in central Arkansas and there is a tenant already in place in one of the sides that has lived there since 2012.  It's going to have to be a complete redo with I feel big plumbing issues.  That said, I would love to be able to get the tenant out so that way I can completely rehab the place, bring rents up and get someone in both sides that I approve of (I don't think they would pass my screening process).

The situation I'm in is this...Owner of the house passed away (I believe) and left it to her daughter that lives in California.  She just wants to get rid of it and be done with it.  The original owner had a property manager in place but his company filed for bankruptcy a couple months ago and has had no contact with the tenant since.  Ever since the beginning the tenant has had a month to month lease but since the property manager has been out of the way the tenant has been living for free.  No one has lease agreements between the two and no money has changed hands the past couple months.

The way I see it, is their "lease" is not valid and I could essentially evict as soon as I close on duplex (21st).  I told them I wouldn't do that because that's not how I conduct business but I would maybe give them to the end of the month and just have my contractors start on the empty side.  He was nice but at the same time was saying about a 30-60 day notice to leave.  Essentially their rent was SUPER low at 450/month.  I will be around 650-700 when I'm fully rehab'd so I just want them out so I can get my contractors in and be done with it.

My thinking is since there is no lease and no money that has changed hands for this month then they have no lease so when I take over I can kick them out?  That sound right to all of you??

TIA!!

@Chris Mason I was more referring to having to get quotes on repairs with the rehab stage point of view of it being a pain.  Seeing that you are a lender I could see that being a pain as well on your end.  Truth be told, I would have to find a solid contractor that would be able to know the in's and out of the 203k if that is the route I take in which I didn't consider earlier.  Thanks for the feedback.

Reason why I don't like the 203k idea is because I hear of all the crap you have to deal with getting that type of loan.  It may just be the odd ones here and there, but I have constantly heard that and it makes me unsure.  Obviously never done one so could be wrong of course.

I got under contract on a duplex here in Conway, Arkansas this morning at a real good price of 85k from the MLS (if that matters). It is a 2/1 on each side and is close to a big college here in town. I have my inspector coming in on Thurs to give me exacts on repairs, but I'm thinking it will need somewhere around 20k of repairs to it to bring it up to a good standard. ARV I'm thinking will be around 140 - 150k or maybe more considering small multi's are hard to find and outrageous right now it seems in Conway.

I'm looking for a low down payment considering that's why I don't just pay for the repairs myself and could live in the rental once it get done with repairs or obviously just rent both sides out and take the cash flow (ultimate plan).

Is the 203k going to sadly be my best option considering I don't have a ton to start with upfront?  I was really hoping a great deal like this would be able to help me out on the back end of it of even if I strike out then they will get the property.

Talked to one lender this morning and he said he would prefer 20% but have seen where 15% down is done.  I could maybe stretch that with friends/family but I would like to get them their money back as soon as possible of course.  Thing is, If I was able to come up with the 20% (17k) then I could just use that to make the repairs!

I'm so torn on what to do.  My main objective is for good cash flow and eventually in a few years be able to live off my passive income, but something like this, should I just find a way to make the repairs, take the profit and then I'll have money to play with on my next after paying my family/friends back? I plan on making a decision here in the next couple days as I have contacted a few banks/hard money lenders to see what exactly my options are.

Thanks for the help!!

@Jimmy Moncrief I used BoA because the lender is a personal friend I have known for years.  I know you should never mix business with personal, but he has been MORE than helpful through the entire process so I stayed with him.  In the future I know that it will be much more difficult to get into adding more houses to my portfolio, so I do plan on getting to know some of the smaller banks here in the next couple months and basically introducing myself.  Everything worked out last Friday and I officially added landlord to my name.  A very surreal feeling for sure and now time to lace up and get to the rehab process!  Thanks for the help though and I will keep you in mind for any questions down the road.

@Dustin Lavender thanks man!  Means alot hearing that because about 6-8 months ago I knew nothing and have came a long way since then. Cant wait to know how I'll be in another 6.  I'm gonna buy and hold it for a few years and basically just use the cash flow to put toward my next down payment/rehab on the next house.  I want to become "seasoned" in bank eyes also so I can expand to other areas down the road as I become more knowledgable and comfortable.

Sounds great man.  Would love to get as much knowledge as I can gather!  Hope all is well.

@Dustin Lavender yes we agreed to that.  They will write me 3 checks on closing date for prorated rent, security deposit they collected and also a small plumbing bill I paid to get the pipes cleaned out.

Obviously, being "seasoned" is not a requirement to them?  Like I said before in this thread, I am buying this to rent after a year but obviously would love to get started quicker if possible.  I should have all my rehab'n done in a couple months and I'll just be sitting on waiting my year and a day mark before I can go back to my bank and get my next "live in rehab".