All Forum Posts by: Dominic Mazzarella

Quote from @Diandre Pierce:

I have an uncle that has owned 6 trailer parks (over 100 trailers) for 16 years. Average profit on a trailer park is between 10-15 percent . My uncle has done 84 percent for the last 14 consecutive years (these numbers can be proven  and have been well documented) . I knew this 4 years ago and decided to build my real estate portfolio to get enough know how to finally get involved. My uncle has agreed to allow me to use his system, employees and resources to build my own trailer park empire. I just need to figure out how to purchase it. He even agreed to selling me one of his since it’s already performing and ready to go. I need help financing this deal. For the last 4 years I have purchased 7 rental homes that are all renting but similarly to monopoly it’s time to scale. I need a lender. I will leverage every asset in my name to make this happen. I just need help on finding a path to get my hands on the capital 

This sounds like an incredible opportunity, especially with your uncle's experience and willingness to help you get started. For financing, you might want to consider reaching out to local banks or credit unions. They can sometimes be more open to funding niche investments like mobile home parks, especially when you’ve got proven cash flow and a solid plan.

Another option could be talking to your uncle about seller financing. If he’s open to it, that could reduce the upfront capital you’d need while making the process a lot smoother. Private lenders or even creating a small syndicate with a group of investors might also be worth exploring, especially since you can point to your uncle’s track record and your own experience managing rentals as a selling point.

If timing is tight, you could look into a bridge loan to secure the property while figuring out a more permanent solution. Beyond that, networking with other investors in the mobile home park space could open up some doors for partnerships or additional funding ideas.

If it were me, I would go the seller financing route first. There's just so much wiggle room doing this, especially since you're dealing with a family member who completely understands the finances of the park. 

Quote from @Patricia Andriolo-Bull:

Quote from @Dominic Mazzarella:

I believe that Stessa isn’t designed to handle all the nuances of depreciation and tax adjustments perfectly. One workaround could be keeping a separate spreadsheet to track your adjusted tax basis accurately and only using Stessa for operational insights.

You could also reach out to a cpa and see if they have a specific recommendation for software to use. 

 Thanks.  I do have it correct outside, but when I run reports through Stessa, they aren't accurate.  Also, as I prepare for estimates, would be helpful to know where my in year deductions actually are.  I'm thinking of maybe just lumping them into a category under repairs or something but want to see if others have a 

It sounds like categorizing deductions under a ‘repairs’ category could work as a temporary fix, but it might not give you the full accuracy you’re looking for long-term. Have you tried reaching out to Stessa’s support team? They might have suggestions or updates that could help with this specific issue.

Another option could be exporting your data to a spreadsheet for manual adjustments. Please let us know if you find a workaround that works well.

This could definitely be a red flag, but we would need to know more beforehand.
It could be a tactic to lock you into negotiations or gauge your seriousness. I'd proceed cautiously. I definitely wouldn't sign a purchase agreement before seeing the property. Also, are they providing the LOI to sign or can you just write your own?

An LOI isn't usually a big deal and I've had properties ask to sign one before a viewing and there wasn't anything fishy going on with those. I just wouldn't give anything more than POF and LOI right now.

I believe that Stessa isn’t designed to handle all the nuances of depreciation and tax adjustments perfectly. One workaround could be keeping a separate spreadsheet to track your adjusted tax basis accurately and only using Stessa for operational insights.

You could also reach out to a cpa and see if they have a specific recommendation for software to use. 

Yes, any cash you take out of a 1031 exchange that isn’t reinvested into a like-kind property is considered “boot” and is subject to capital gains tax. The IRS views it as taxable income because it’s not being used for the purpose of deferring taxes under the 1031 rules.

For example, if you sell a property and only use part of the proceeds for the next investment, the leftover amount (after paying transaction costs, etc.) is taxed. It’s a good idea to work with a qualified intermediary and a tax advisor to ensure everything is structured properly and you’re clear on any tax implications.

It certainly could be a red flag, but not necessarily. I bought a property that was on the market for 7 months and was nervous other investors saw something I didn’t. All the numbers checked out and I went through with the purchase. 

When I made some changes to the property and put it back on the market about 15 months later for double what I paid, it was under contract in 48 hours.

There are a number of factors for why a property could be on the market a while. The seller could just have an unmotivated broker that doesn’t market the property well, among other reasons. 

@Alec Dressler

You’re on the right track using tools like AirDNA, but for better data, consider the paid version or platforms like Mashvisor for detailed rental analytics. Since comps are limited, analyze similar nearby locations to estimate demand.

When pitching investors, focus on a clear business case: expected income, expenses, occupancy, and ROI. Highlight the property's unique features (off-grid, sustainable) and the area's growth potential to show long-term value. Keep it concise and data-driven. Sounds like a pretty cool property, good luck!

Quote from @Kadeem Kamal:

I’m starting the process of doing a 1031 where I’ll get about 300k to put towards the the next property. I’m really trying to get to the top in of my buy window (1.1m). One thing that I’m seeing it that large multi unit buildings beyond the 800k mark are all on a boiler and paying to heat the entire building ruins the numbers.

Is there any good rules of thumb to estimating the cost of a boiler?

Heating costs can be a killer on larger buildings with central boilers, especially in colder climates. For a rule of thumb, replacing a commercial boiler can range anywhere from $20k to $150k, depending on the size, age, and efficiency. If you're looking at retrofitting to separate heating for each unit (like furnaces or mini-splits), you might be looking at a higher upfront cost, but it can shift utility expenses to tenants and improve your NOI.

I’d factor in boiler age and efficiency when analyzing deals and if it’s near the end of its life, negotiate a price reduction or a credit. Also, check if there are incentives or rebates for upgrading to more energy-efficient systems in your area.

Quote from @Devin James:

Quote from @Dominic Mazzarella:

Quote from @Devin James:

Everything went wrong with this investment:

   - Took 4 months longer than expected

   - Cost $10K more to build than we anticipated

   - Sold for $20K less than we anticipated

We still profited with a 30% return on equity

This is why I love Real Estate Investing

When you do your diligence and stay conservative with your numbers, it takes something really bad to lose money.

Here was the original post:

My siblings and I are building a home in North Port, FL.

Here are the numbers:
- Finished Home Value: $412Kish
- Land Cost: $19,750.39
- Construction & Permitting Costs: $304,897

Additional costs:
- Environmental Site Assessment
- General Liability Insurance
- Builders Risk Insurance
- Construction Financing

We will be listing the home this week

Photos coming soon!!

 Haha yeah this is what real estate deals usually look like for me, but awesome that you came out ahead! And your central point I think, is to use conservative numbers so the deal still makes sense even in the worst case scenario. Good stuff!

Oh and I’ve got a good bit of family in North Port. Small world. 

Thanks Dominic!

I try to provide the raw truth. Home runs are far and few between.

Oh I wish more people were honest about their deals. And a single or double play is awesome. Like you said, homeruns are few and far between. 

Quote from @Devin James:

Everything went wrong with this investment:

   - Took 4 months longer than expected

   - Cost $10K more to build than we anticipated

   - Sold for $20K less than we anticipated

We still profited with a 30% return on equity

This is why I love Real Estate Investing

When you do your diligence and stay conservative with your numbers, it takes something really bad to lose money.

Here was the original post:

My siblings and I are building a home in North Port, FL.

Here are the numbers:
- Finished Home Value: $412Kish
- Land Cost: $19,750.39
- Construction & Permitting Costs: $304,897

Additional costs:
- Environmental Site Assessment
- General Liability Insurance
- Builders Risk Insurance
- Construction Financing

We will be listing the home this week

Photos coming soon!!

 Haha yeah this is what real estate deals usually look like for me, but awesome that you came out ahead! And your central point I think, is to use conservative numbers so the deal still makes sense even in the worst case scenario. Good stuff!

Oh and I’ve got a good bit of family in North Port. Small world.