All Forum Posts by: Sean Harris

Lots of great information on here thank you all so much. This place is a year round type of destination with the lakes being in demand for the summer and there is also a ski resort for all the winter time traffic. The places I have seen for a small cabin are around 300k and they can go up to close to a million in some areas. I like the idea of having a place in a cool destination but besides the average 2 week stay a year the main goal here is to create cashflow in order to pay off my downpayment which IF I was to do this I would utilize a HELOC I currently have on my primary residence. So in that sense I would want to pay it off fast and not sure I could with the 40% occupancy. Even places that I looked into such as Nashville, TN which I feel would be very in demand only hold a 47% occupancy. I just need to keep diving in a bit more. Thanks for all the information

I have always had the idea of owning a vacation rental in a small but popular mountain town near where I live. Just curious at what other people's returns are typically because according to airdna this town says its average rates are about $330 a night and occupancy rate of 40%. I dont really like the idea of having a bunch of long term SFR but more places where we like to visit that I can rent out when we aren't there.

@Frank Rolf Thank you so much for the response and all the information. I am currently on Marcus and Millichap but I will get on Sunstone per your recommendation.

I'm loving the Lexington area and can't wait to find some deals over in KY. 

 @Joseph Back ill PM you right now, thank you

I have been looking for parks over the last few months particularly in the midwest due to the prices and mainly because of the better landlord/tenant laws. I live in California which most of you know is not the best for either of those. I have family currently moving to Lexington Kentucky so I would love to buy some parks over there, considering I would have a place to stay when visiting. I'm just looking for any good info on the area as well as if you guys and gals know of any good brokers that serve that region. Any help will be much appreciated. 

Thank you Jack for that detailed response. How do you typically set up how you recieve your monthly rent checks? Also say that the park that you now own is kind of dated and there is little to no computer use or experience used by the current manager. Do you try and implement more of an automated system online that you can train the manager to use? If so do you buy a computer or tablet for the manager or rely on them being able to do these things from their own cell phone/computer? Thanks

I am just curious what steps people take right after closing a mobile home park deal and you are the new owner/operator. Lets say for the sake of this post that all the DD work is done and comes back perfect. What steps do you then take in order to get the property performing the way you want it to and what systems do you use? management, bookkeeping, rent raises, new rules for the park etc?

That's alot of helpful information George, thank you for taking the time to type that up for me. I have a current employer which my 401k is going through so I will look into all that for sure. Is there usually a cap on how much you can withdraw at one time? Thank you

Thanks Janene, I knew about the 10% penalty but i did not know about it being taxed as well, thanks for the info. I have taken a loan in the past from my 401k so that is still a possibility. If you dont mind i would like to hear more about your first MHP purchase using a HELOC, I can PM you? Thank you

Absolutely. I forgot to mention that in my post but I would even then need capital for a downpayment most likely, thank you

I'm looking to buy a mobile home park in the next year whether I partner up or buy this alone. I'm trying to think of ways to come up with the capital other than finding multiple investors to put down on the property. I would like my first park to either be just myself or with one partner. I have a friend who just closed on his first park last week in South Carolina, so it's good to see the processes that he is having to go through. For my situation I'm seeing a few options to get the money but I'm not sure what is best. I'm trying to leverage what I currently have to create passive income.

Option one:

Use the current HELOC I have on my primary residence of 100k to fund a downpayment on one and then use the cash flow to pay down the HELOC. Yes I am aware that rates can fluctuate and many people say only to use this for short term but I also know lots of people who have used this strategy for long term with success, just slightly riskier I guess.

Option two:

Get a cash out refi on my primary house which I could get somewhere between 120k-140k and use this money to fund the downpayment and other associated costs.

Option three:

Use a combination of either option one or option two PLUS pull some money out of my 401k to aid in a larger downpayment.

Any advice will be greatly appreciated. I'm open to any suggestion you have. I obviously would factor in all my monthly payments on the money used plus the mortgaged amount and factor that in to make sure I'm positive cash flow still. I'm just trying to utilize the power of leverage to become financially free one day and i want to make sure whichever path I choose is the smartest way in my position. Thanks y'all