All Forum Posts by: Daniel Jewell

@Ryland Clay Parker

Happy to help man :) let us know what happens!

@Ryland Clay Parker

I get that feeling and if your willing to take the risk then absolutely do it!

but you have to be aware of every single detail and be wary.

when I go into a market that I don't have personal experience with it's important to know every single detail and do risk management.

a deal of this size a small percentage mess up could equal thousands and thousands of dollars.

It might be good to see if you could find a partner that has experience with mobile home parks. there's nothing wrong with having a partner, might actually guarantee you some profit.

@Chris Utter

Yes!!

A simple business cards from Vistaprint you can get like 500 for like $25 if one of those business cards gives you a good contact I feel that is worth $25

@Ricardo S.

It's a 1000sqft home 3 bedrooms. 1 full bathroom and a private half bath connected to the master bedroom

If I was to rent the hole house out i could get $1200pm on the low end. I say 12 because my comps are renting for 15 or 17

@Robert Arquilla

I can't say exactly due to I don't really know what the market is in that particular area but if you were to look at Big Ticket yes or no's for people.

That will tell you what your target market is.

so a family that has 3 kids will probably want a 4 bedroom house minimum. So that's not your target market

also you need to think about who can afford that rent and what kind of person is that. are they going to be living alone in a 600 square foot house? are they going to have a roommate?

Just try to put yourself in the shoes of the person that would want to rent this home and then create a backstory. it could be fun!

If you're curious about what other rentals are like in the area look up rentoMeter.Com I also attached the link below and you can see what other people are charging or renting

https://www.rentometer.com/

I agree you should call the seller and talk to them and see what their motivations are. Maybe if they would be open to seller financing, being that it doesn't seem like they're in a big rush to sell it.

if you can get it rented and have all expenses paid regardless of the house i think you should try to buy and hold it.

I think one of the biggest positives apart from adding to your portfolio and getting an extra $100 a month is establishing a record of being a landlord and making a profit.

when people talk about the Brrrr strategy they don't mention that a lot of lenders won't lend to you unless you have provable experience as a landlord, almost the same principles as a 1099 employee you need to prove that you have an income in that industry

Wow you're new and you're first passive income would be a mobile home park!? good gracious that's fantastic!!

if you have that kind of money wouldn't it be better to buy a few singular mobile homes to diversify your exposure and gain experience in that market one at a time? not to mention diversification. if you know you can analyze one mobile home than a park is just multiple with some differences. 

Investment Info:

Single-family residence other investment in Rochelle.

Purchase price: $119,000
Cash invested: $35,000

I'm also living here and I'm renting out the other rooms so I'm not expecting there to be a prophet. Basically, I'm house hacking and I'm waiting for my 2-year live in tax deduction to apply and then I might sell it, the resale value is about 210k give or take. With it being my first deal I'm pretty happy.

Pictures are from when I bought it. That's not how it is currently
That power washer works now and I've made money off of it ;)

What made you interested in investing in this type of deal?

What made me interested in buying this particular home is that it was a HUD home and knowing how HUD operates I knew that I could get it for significantly lower than market value. I wanted a deal that I could afford as it being my first deal and I needed financing and potentially make money off of in future

How did you find this deal and how did you negotiate it?

working with David Flack who is an agent,rental property owner, flipper and developer. we looked in Northern Virginia for about 6 months and we found this house. it was a little overpriced so we left. I read a lot and I found out that HUD gives the agent instructions.
One of those instructions is a minimum price and usually that price is the money that they have in the property.
so if I were to do research on the house and see how long the previous owner had the property I can calculate how mu

How did you finance this deal?

I finance the property with prime lending. loan officers was David Mincey, he's a very patient and very knowledgeable man.

the closing costs ended up being around $10,000, 6% interest rate

my loan was later sold to a different company

How did you add value to the deal?

I had this huge thing written out explaining prices and how long it took and when I went to copy and paste I found out that I'm limited on space!! so if you want any specifics just message me and I'd be happy to tell you. basically we ran laminate flooring throughout the entire house, tiled the bathrooms, painted the cabinets and painted the walls and made the deck better.

What was the outcome?

I really don't understand this question. the outcome of this whole thing is having a house that is pretty nice that I can't imagine anyone saying Hell No to live in

Lessons learned? Challenges?

I think the biggest lesson and I think that I'm still learning this lesson is cost-benefit analysis. I didn't learn anything new when it comes to putting in flooring replacing subfloor tiling most of that I already knew how to do but I think the experience of looking at it from a real estate investing point of view was a big thing. as well as going through the loan process and understanding how painfully slow HUD and other big corporations can be

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

David Flack was my agent and a big knowledge resource being that he is a real estate investor himself
David Minsy (with prime lending) was the loan officer that helped me secure the loan he's a very patient and knowledgeable man he took the time to explain how things work and was just generally patient with me.
Devin Jewell he helped me pay for most of the repairs and I wouldn't have been able to do this without the money that he invested in this deal

@Matt McConkey %100 agree! on some level I'm kind of embarrassed to admit it but also kind of proud, I've listened to all of the BiggerPockets podcasts and there other content And I'm making good headway on the books they've recommended.

Other then finding other ways to work in the industry and hanging out on here Im not really sure what else I can do to add value.

@Josue Vargas as of now I'm averaging about $25 ph at about 40 hours per week so a good amount more :) not including the %10 I get for flips.

My job is basically a handyman. But I also help with looking/evaluate deels and developing land for affordable housing, like manufactured homes.

Although all of this is though a handshake. Do you guys think I should get a contract saying all this?

If so I have no idea where to start and I don't really want to get a lawyer. a couple thousand dollars that I would spend on one would be more valuable somewhere else.