All Forum Posts by: Clyde Myers Jr

Yes, same one I decided to buy it to flip it!!got it for 120k

I do all of my own evictions and over the last 10 years or so of having rental property I've done my fair share of evictions lol.  Im not an expert at the process and sometimes have to hit the internet to speed up on what the process is but I can honestly say I've only ended up in court a handful of times after going through the whole process.  Thankful Texas has a "speedy checkout lane" for deadbeat tenants compared to some states.

Like I said my daughter works for me 5 days a week and I have a small group of handymen that I use if not do things myself when I'm in town. I work full time in the oilfield working 3 weeks on and then I have three weeks off to help with the rentals.  Like I tell my wife, no matter how much work we have to do, it's a means to end to hopefully retire early and not have financial worries.

Thanks for the input!  Clyde

Hey Mark, yeah I wish it was NNN believe me BUT it basically came down to me getting a tenant. This is very embarrassing but the tenant that just left after their 2 year lease was up paid me .25 sq ft only and no NNN because I needed a tenant so bad. The 11,500 sq ft space is the lion share of my building and at the time it had already gone months unleased so I basically had to settle.

I drove around a bit just from hanging out with my broker I have run across some of the other "big" commercial brokers and wasn't that impressed.  J Beard is a big one in my area but his properties (at least in my area) stay on the market so long that his signage ends up falling over and deteriorating in the Texas weather.  I think their too big to give every listing/client the attention it needs/deserves.  Not to say that there all like that but I would like to be picky and find a tailored broker for my specific situation/area/property.  If you have a recommendation that fits this then by all means I would greatly appreciate their info and would give a healthy kickback once a lease is secured.  Thanks

Noted....and thank you much for the info

Lot rent is $175.  It is not a "named" park and is not considered commercial.  However, it is on a 1-acre lot inside city limits that the city put 12 water taps to and 12 sewer taps.  Its not on someone else's land or anything like that.  Its very unique BUT totally legal which makes me wonder where the 7 home per acre rule came from.  Ive never heard of that and this park has been in this location for 20+ years.  Maybe it was grandfathered in or something.  There is a huge shortage of rent homes in the area.  Teachers are actually brought in seasonally from other areas for the school year and setup in temporary housing.  There is nothing for rent in the area.

Belinda I am horrible with numbers and have always just rationalized out an investment property purchase in my head.  The facts are this.  The tenant owned homes (4 of them) pay $175 monthly for lot rent and never miss a beat with all 4 having been there for 15+ years.  Out of the remaining 5 that I own....1 is an empty and needs complete rehab, 1 is a 14x60 2/bd that I get $700 for and the other 3 are the 12x40 2/bd "park models" that I own so many of where I live 30 minutes away from this park and I just installed those hoping to get $450 month.  

I discount one tenant/owner $50 per month to cut all common area grass.  I discount another tenant/owner $60 per month to box blade the small gravel road twice a year.  That's it for property maintenance!!  Taxes and insurance are $190 per month.  There is really no other overhead as its all city water, sewer, and electric.  No special landscaping in the park or big nice signage to keep up with.  Its one of only two parks in the small town and the other one is just an rv park.

I paid $85k for the park without the three park models.  I owe the bank like $60k and pay $585 month on the note so for me it has positive cash flow and is a win......right?  Or am I missing something?  Thanks in advance

One other thing I forgot to mention is time.  My time specifically.  I don't have much of it at all and would rather find a competent commercial broker.  My daughter works for me full time managing my properties but she doesn't touch my two commercial properties due to lack of experience.  Most of time is tied up with my other commercial property on a big recreational lake.  I'm developing it as a "park model" rv park.

Thanks and I appreciate the info.  Its taking me a while to respond because I'm still processing everything.  Joel as far as it being worth it to my broker to enlist in Costar, not sure why as he made $40k on me in commissions when I bought the building 3 years ago.  I actually rode with my broker to the bank when he was given the property as a foreclosure to list by the bank.  Naturally after we left he wanted to see it so we drove right to it, I said I wanted it, and then bought it.

I get it by now, I need to get a commercial broker.  I didnt come out and say that in my first post because of the forum "rules" against soliciting for a "mentor".  Where do I find a good commercial broker specializing in warehouse/office space leasing in my area?!  I'm in desperate need.  I have no problem taking the listing elsewhere.  I own many other residential properties that my residential broker has listed at any one time so I wont feel bad at all.

As far as TI go I just went through that with the suite right next to the one available now.  I did my own thing right or wrong and I think it was right.  I landed an international tenant on a long term lease by simply splitting the capital buildout with him which cost upwards of $70k through free rent and then contract re-negotiated to higher rate based on buildout.

Excellent advice and I agree completely.  I should have disclosed more details in my original posting.  These "park models" that I have an "in" on are 12' x 40' and have central a/c and heat with 2x4 walls, shingle roofs, and vinyl siding.  I already own like 15 of these park models which I have long term leases on.  They are scattered out in mobile home subdivisions on lots that I own so I know what I can get for them and have a decent inventory stored up of various parts and things for repairs over the years.  They have real toilets and sinks are are for the most part as good as a mobile home.  They are all 2/1 also which helps with having one or two kids.

Belinda, I greatly appreciate that tidbit about monthly vs. long term renting when it comes to evictions.  I absolutely did not know that.  Is that a county law or city or state?  Not sure if it matters but i am up in Montgomery County.  Either way it looks like I will be doing month to month then and spending the extra money to give the resort atmosphere to include wifi, laundry facility, etc.

I use my own lease that I drew up and fined tuned over several years after evaluating many other leases and through personal experiences.  I ALWAYS get first month, last month, and deposit equal to a month all up front.  I screen very well also using an independent verification source.  My daughter works for me full time managing all of my rental property as I have a full time job in the oilfield.  Oh and my pet deposit is $300 and non-refundable. 

Thank You so much for the insight and knowledge!