All Forum Posts by: Devan Mcclish

DaVon Brooks welcome to BP and to Nashville. The nashville market is pretty tight especially in residential but you can still find good deals. I'm a cash buyer in Nashville, any fix and flip or multifamily deal you run across send it my way!

there is a 16 unit mobile home park that I am looking at. They are selling both the land with the mobile homes, and they are asking 590k. Currently they are paying the tenants water and electric bills which totals to approximately 18k a year from what they are telling me on the expense report. I would sub meter each property for both electric and water. at their asking price it is currently at a 10.3 cap. Expenses I am estimating at 50%, is that too high or too low for a mobile home park? Also, I understand that mobile homes are depreciating assets, so is it typical for investors to buy both the land and the homes and rent them out?

Furthermore, the average rent per unit is $630 a month. Each lease varies, and each lease is a week to week lease. In the area where I am located, I can get 6 month to 1 year leases on these homes. But is it typical for week to week leases in mobile home parks? I know I can get each unit to rent between 600-700 a month. I would be able to increase the NOI by decreasing expenses and raising rent

Thoughts on this deal?

@Matthew Carr all you need is a purchase and sale contract and an assignment contract. Consult an attorney they can easily write one for you. 

@Jim Means take your deals to a local REIA group, post them on bigger pockets. If you find a GOOD deal, the money will come. If nothing else, use Craigslist. Again, if it is a good deal, you should have no worries finding a buyer

@Brian White as a buyer I dont care how much you are getting paid as long as I'm going to make money. If your buyer gets aggravated with you, it's time to find a new buyer. If you are able to make 10, 15, or even 20 on a deal, then good for you. Your buyer should be more concerned about building a long term relationship than how much everyone is getting paid 

@Christopher Yates Good luck! Nashville is a tight market for good deals, but they are still out there

@David Paul check out REIN. We have meetings almost every week

@Christopher Yates I looked at this property to purchase it myself. The first thing to be weary of is the HOA fees. HOA can become a real problem as a buy and hold investor if you plan on holding it for a period of time. For example, if one townhome needs a new roof in the subdivision, HOA will send you a bill to help pay for it (special assessment tax). This could take any cash flow you have right out from under you. I am an agent, I have looked at the comps I am seeing comps around 120-130k within that subdivision. There is an outlier at 150 but it is updated. From the pictures on this property, it is not updated. It is also a pretty good sized home at 2656 sqft. So consider the rehab costs associated with that in order to sell at your comp price of 150. The homeowner also just refinanced this property for 124k, meaning there is very little equity. That being said, if you renovated the property plus your 10k and you have to pay off the bank, you would have to come to the table with cash to close that deal. Also, I had checked the rents around that area on the MLS and they are going for 1000 a month. That is less than $100 a month in cash flow. Once your son moves out, you will be stuck paying a mortgage, and not a whole lot of room for any mistakes, which any landlord knows, there will be some problems. Be aware that at $83 a month in cash flow, the HOA just needs to assess one tax to you and it could wipe out your cash flow for several months.

Go with a quadplex. Building wealth comes from cash flow. Your cash flow will be greater with the quadplex as opposed to the sfh. From there you can use the quadplex to leverage into another properties. The more units = more cash flow.

@Lucas Bennett Guardian water is the one who quoted me. have you used them before?