All Forum Posts by: Eric Heinen

Cash on Cash should be double the current figure IMO...7% is the average return the stock market will give you plus no additional headaches of a rehab and deadbeat tenants.

Park owned homes, tenant owned home. 

1.  Those are some pretty terrible numbers, you couldn't even make that work doing an owner occupied purchase with 3.5% down or significant value add.  Is this property in California or east coast?

2. Yeah, run away.  825k would be the purchase price of a 16 unit in my location.

3. You'd be speculating on appreciation most likely.  Invest in other markets. 

I've read that you should only count the pad rent and not the rent from any park owned homes in the evaluation.  From there you can determine an offer price.

Your numbers seem low and what's wrong with offering 20k or more below the list price?  If you're not embarassed by your first offer, you're offering too much. :)

I'm very interested to see how this turns out for you.  Oh, can't your wife piggyback off your credit history if you make them an authorized user?  I've heard that's an easy way to jumpstart someone with little to no credit history.

From what I know about property management, the margins are meager and the headaches plentiful.  

Why are you interested in buying a town house?  There's much better properties to buy around here.

Buy the park, not the home.

Unless this is next door to a college, I'd be nervous with all those studios and 1 bedrooms.