All Forum Posts by: Eric Bassett

@Hai Loc

I agree they are crowded for sure. What about the MHP’s makes them your first choice? Is it the cash flow/return or more of the work involved etc...?

I’m happy with how I’m doing with MF currently. Been contemplating moving into the MHP space for awhile now but having trouble convincing myself that that is the right move as oppose to just continuing to grow the MF portfolio. Thanks for the input!

Anyone here start in MF rentals and decide to move on to MHP’s? Or currently do both possibly? Contemplating a few things and was just looking to hear others opinions/experiences on similar moves.

@Katie Courtney

I would first suggest looking into the well issue a little closer. That alone could destroy your budget.

Is the home currently being lived in or is it vacant?

Where about are you located? If your someplace that has harsh winters, frozen pipes can be a nightmare for mobile homes so I would suggest checking the insulation underneath etc...

I think the main difference is that mobile homes tend not to be as durable as a normal sf stick built home so your ongoing maintenance and repairs are usually higher. But a lot of that is dependent on your tenants also as with any rental.

@Jeffrey Butler

Do you know what exactly makes them illegal units currently? Knowing that is going to give you the best idea of time/expense to fix. If it were me I would speak to code enforcement directly and ask them exactly what they are going to require to give you a CO for that apartment. A lot of times they are familiar enough with most properties to know. At least thats what I’ve found in my market in upstate ny. Similar to what @Pat L. was saying, we just renovated the third floor(attic) of one of our student housing buildings to add a couple more bedrooms and a bathroom to the upstairs apartment. Turns out that code in this particular area says that everything above the second floor has to have fire sprinklers. An added 10k to the Reno. Still worth it as two extra bedrooms in a student rental pays for that quickly but in some cases it may have made it not worth it.

@Frank Rolfe

Thank you very much. That is very close to what I was coming up with. There is three homes pre 1980 and two in the 90’s so I was valuing the homes at around 25k at best. The seller was asking 250k total so I found myself doubting my valuation. Thanks for the insight, much appreciated!

Hi everyone. We are in the process of negotiating on a small park. The problem I’m having is determining what an accurate value is. The park has 8 total pads. Currently there is 5 poh, 1 tenant owned home, and then two empty pads which are ready to be filled. Additional upside is there is around five acres so there is room to greatly expand and add more pads.

Lot rent is $325. Park owned homes rent for average of 650. Utilities are private(well and two septic systems) both are in excellent working condition and the park itself is very clean and very well run.

The issue I’m having is that the seller is putting too much value on the park owned homes and not valuing the park based on lot rent and home value separately. So the numbers I’m coming up with are much less than the asking price. They have offered seller financing so that is a plus.

I guess I’m just looking for some insight before submitting an offer that’s half of what they have it listed for. Thanks in advance!