All Forum Posts by: Etrayu Fitzgerald

Hey everyone. Newbie here. Found an ad for a 12 unit mobile home park. Looking for some info as far as deal quality and things to watch out for.

Price: 149,900

Units: 12

More info:

9 lots occupied. 8 of which are park owned.

3 vacant lots and room to add 4 more.

Ad claims 42,000 a year in gross income currently (with the 9 occupied units).

I believe that makes rent/fees income equal to $500/month per unit.

Wondering what sort of stuff to be wary of when reading ads like this. I wonder why it's being sold and if it's even worth a look.

Any info is appreciated :) Thank you!

Hey everyone. Newbie here. Found an ad for a 12 unit mobile home park. Looking for some info as far as deal quality and things to watch out for.

Price: 149,900

Units: 12

More info:

9 lots occupied. 8 of which are park owned.

3 vacant lots and room to add 4 more.

Ad claims 42,000 a year in gross income currently (with the 9 occupied units).

I believe that makes rent/fees income equal to $500/month per unit.

Wondering what sort of stuff to be wary of when reading ads like this. I wonder why it's being sold and if it's even worth a look.

Any info is appreciated :) Thank you!

Is a down payment like that necessary for most properties if you don't plan to live in them?

I guess what I'm wondering is, what parameters decide a "proper" down payment?

I was under the impression that 5% was the minimum for a conventional loan. Or is that only with owner occupancy?

Hello everyone! Complete newbie to real estate here.

I do own my own home (with a friend) but am new to investment.

A couple partners and I are looking into a property in our hometown. It's a duplex with tenants already living there. We used the basic "Four Square Method" video to determine costs vs income. And somehow came up with an ROI of almost 60%. I feel as though we miscalculated something.

One unit yields $400 in rent (1 bedroom) and the other yields $800 (3 bedroom).

Total Rent: $1,200

Duplex Price: $67,000

Down Payment: $3,350

Repair Estimate: $2,000

Closing Cost Estimate: $1,500

Total Investment = $6,850

We factored in:

Mortgage: $340

Mortgage insurance (we would have a low down payment): $40

Home owners insurance: $67

Property tax: $113

Vacancy savings: $60

CapEx: $60

Repairs: $60

Lawn/Snow: $120

There are no HOA dues.

Total costs: $860

So, our monthly cash flow should be $340.

Annual cash flow $4,080

Total Investment $6,850

ROI: 59.5%

I feel like this return is far too high.

Is there something obvious we're missing?

All advice is appreciated! Excited to be a part of things!

Hello everyone! Complete newbie to real estate here.

I do own my own home (with a friend) but am new to investment.

A couple partners and I are looking into a property in our hometown. It's a duplex with tenants already living there. We used the basic "Four Square Method" video to determine costs vs income. And somehow came up with an ROI of almost 60%. I feel as though we miscalculated something.

One unit yields $400 in rent (1 bedroom) and the other yields $800 (3 bedroom).

Total Rent: $1,200

Duplex Price: $67,000

Down Payment: $3,350

Repair Estimate: $2,000

Closing Cost Estimate: $1,500

Total Investment = $6,850

We factored in:

Mortgage: $340

Mortgage insurance (we would have a low down payment): $40

Home owners insurance: $67

Property tax: $113

Vacancy savings: $60

CapEx: $60

Repairs: $60

Lawn/Snow: $120

There are no HOA dues.

Total costs: $860

So, our monthly cash flow should be $340.

Annual cash flow $4,080

Total Investment $6,850

ROI: 59.5%

I feel like this return is far too high.

Is there something obvious we're missing?

All advice is appreciated! Excited to be a part of things!

First off, thank you for the reply!

When you say "how will you find one?" Are you referring to a rental property?

Greetings everyone,

I, along with two other investors, are looking into the idea of purchasing a duplex. We would then rent both units out.

For Wisconsin landlords, is there any licensure that we would need in order to legally rent out a property we own?

Specifically, this would be in Eau Claire, WI. I am already aware of the city's health department requirements of property registration. But am unsure if the state of Wisconsin requires some form of license or other legal forms.

In other words, can we simply go and buy a place, with the intention to rent, and immediately start advertising?

Any help is appreciated.

Thanks!

Hello everyone! Complete newbie to real estate here.

I do own my own home (with a friend) but am new to investment.

A couple partners and I are looking into a property in our hometown. It's a duplex with tenants already living there. We used the basic "Four Square Method" video to determine costs vs income. And somehow came up with an ROI of almost 60%. I feel as though we miscalculated something.

One unit yields $400 in rent (1 bedroom) and the other yields $800 (3 bedroom).

Total Rent: $1,200

Duplex Price: $67,000

Down Payment: $3,350

Repair Estimate: $2,000

Closing Cost Estimate: $1,500

Total Investment = $6,850

We factored in:

Mortgage: $340

Mortgage insurance (we would have a low down payment): $40

Home owners insurance: $67

Property tax: $113

Vacancy savings: $60

CapEx: $60

Repairs: $60

Lawn/Snow: $120

There are no HOA dues.

Total costs: $860

So, our monthly cash flow should be $340.

Annual cash flow $4,080

Total Investment $6,850

ROI: 59.5%

I feel like this return is far too high.

Is there something obvious we're missing?

All advice is appreciated! Excited to be a part of things!