All Forum Posts by: Dan Mead

Anyone want to recommend a specific real estate agent in Utah (mostly SLC, West Valley) who is used to working for investors?

@Carrie Cavins; Thanks for including us!  This has been fun to watch.

Indeed @Daniel Derrick!  In fact, I spent last night doing that.  Still a work in progress, I'll refine it over time.  enjoy and good luck!

Thanks for your response @Bill Neves

John was on BP podcast #75 

He also has his own podcast.  

I understand that this and SFH are different animals. However, I don't think that just knowing that should preclude me attempting to setup rules and therefor being able to build tools to help me analyze a deal in Mobile Homes. For instance,

@John Fedro has given me the closest thing to 'rules' that he lives by; 

• no homes in 55+

For financing, sell the home but carry,

• All Cash back in ten months
• 60 month+ sell
• min cash flow of 300 monthly

OR

• cash for 3x your investment

I'll take a crack at it; but just knowing this stuff will allow a person to structure and analyze a deal when they see one.  Of course, with the caveat that his is how @John Fedro goes about it and it likely looks different for others

If I spend $10,000 total out on the deal then I will want to be able to recruit that back in 10 months.  I could then know that I need to resell that home for (for instance) a $3,000 move-in fee, and $1,000 monthly (300 lot rent, 700 payment).  This would give me $10,000 total in 10 months.  Then I could know that the remainder of the the home would be $35,000 over the course of 50 more months, for a total sell of $45,000 and a simplified profit of 35,000.  Before buying the home then, I know I need to hit these numbers when selling....SO how does that $1,000 monthly compare to the rent's in the surrounding houses. All of these numbers are things I can easily build into a spreadsheet to help me quickly analyze a deal. Simplified, but a quick tool to help me analyze a deal, rather than just saying "this game is so different than SFH that these things don't apply".

I guess what I am really asking would then be, what are your parameters as rules that YOU use when analyzing if it's a deal for you?

Thanks for the conversation, it is appreciated

@John Arendsen, Thank you.  

I completely understand that, which is precisely the reason I'm asking.  From all that I've read and considered, one would think that long the way someone had come up with a specific "rule" or two that works for them when analyzing MH deals.  

I've poured over the fix an flip deal analysis. And have used the tools available on the site to analyze several SFH deals. Just wondering if there are similar tools and rules (ie 70% rule) out there for those in Mobile Homes.

https://www.biggerpockets.com/house-flip-estimatio...

Can someone point me to a guide to analyze Mobile Home buying/financing?  I want to do it similar to how @John Fedro does it (great podcast).  However, I'm wondering if there is a place to read guidelines on knowing you have a solid deal when analyzing?  I did a search and am not seeing one.

@Dawn Brooks  I'm too much of a rook myself to offer any advice, but I can't wait to watch what happens here!  Good Luck, sending positive thoughts.

@Jon Crosby, what a helpful response!  Thanks for responding in this way.  In an odd way it feels like a hurdle I've gotten over.  It can be hard to admit you're a neophyte in some part of the professional world.

Love this comment, "all about some simple math and a little 'guts' to take that first leap of faith into the market."  I have the FEELING that this it true, yet to prove it out though.  I really like the lease option thought!  I'll do some digging to learn more and to vet out what is out there in the areas toward which I'm looking 

To answer your questions;   I'll be planning from the start on building teams of maintenance and housekeeping from folks close to the properties.  The homes I've been eyeing are in a few areas.  Ive run a couple handfuls of homes through the various calculators to get a feel, but there's no substitute for experience.  

1) the city center edge, homes on the way from the airport and close to all the action (conferences, games, religious venues, etc)   These are the closest, about 35 minutes from me and not far from where I am at work regularly.  Most of these homes that seem to have some fix and rent capability are in the 170+, to an average of 230+ range.  I'm hoping to keep looking, pry at those I know and find one for less, with possibility of higher ARV.

2) Homes where people travel to recreate; there are two centers of these with my eye on them.  One where the homes are quite cheap, but Craigslist and homes on the market there are renting for similar rent to the rest (hence I lean that direction).  The other is a more affluent area, houses cost more on average and I've pretty much ruled that area out until a later date.  both of these  are 1.5 to 2 hours away.  

I'm leaning toward Vacation Homes mostly because it calls to me, and the theoretic numbers continually make sense; though, like you have pointed out, occupancy isn't guaranteed.   MY wife and I AirBnB a lot and really enjoy the whole business.  I would plan on building separate online funnels to attract customers from more than one source and wouldn't limit myself to to marketing on just AirBnB.

I'm also open to flipping, but don't feel ready for that game quite yet.   And I do prefer to head toward the stability of a portfolio of four-plexes to buy and hold. I've explored the Mobile Home business and it still intrigues me as a way to get started with little money.  

Anyway, apparently I'm not afraid to sit here and type away.  My faith must still be weak!