All Forum Posts by: Grant Pope

@Ryan Murdock those are great questions. 

It it listed for $80,000. I think I could maybe get it just under $50,000.

I have not been in the existing trailers, but from the outside I don't think I can count on them for anything. Basically count on scrapping them and anything left will be a bonus.

As far as revenue generated, I am not sure. I am doing my research for the local market, but in this particular town there is no other mobile home park to even compare. I have started to reach into neighboring towns to see if there are any nearby.

It is city utilities. They look in decent shape. Could maybe use some upgrading.

The owner has a small resort that they are selling as well. They sound like they are retiring and moving south. Ready to get rid of it and move on. 

There is a mobile home park that just went up for sale in my area. It is a small 5 unit park with only two homes on two of the lots. The homes look pretty junky. She is not asking much for it. I think I could get it for a good price. It is right around the corner from a big beautiful lake in Southern Minnesota. 

I listen to the podcasts every day and hear @Brandon Turner talk about mobile home parks and how he recently purchased one. I started looking into the idea of maybe buying some lower priced mobile homes, move them in, fix them up, sell them, rent out the lot. Hopefully buy flipping the home and turning it into a nice property I will attract better tenants. If it worked out for two of them I would try and do the other three lots the same.

My other issue I am having is finding comparable properties in my area. There is no other mobile home park that I can find in this town. So as far as finding what the going rent is, I have no idea because there is no one else doing it in the town. Obviously rent depends on the area and the current demand in that area. Wondering what numbers you guys get a month for a lot?

Any tips, tricks, or advice anyone has about mobile homes would be greatly appreciated. Any good books are good articles to read would also be great. 

Thanks in advance. LOVE BP!

@Brandon Siewert I am looking for more information about Flipping mobile homes. Wondering if you ever dug up any good reads that would be helpful.

Hope things are going well. 

Hello all.

Looking for some advice and also looking to get a few opinions.

I just looked at a duplex that was listed on the MLS. My realtor sent it over and it looked to me to have some potential. As we walked through the property, we noticed that this "duplex" was indeed built as a four-plex. Separate utilities, four kitchens, four bathrooms, four entrances. My first thought was I had found a gold mine, but I called the city and they informed me that the rental license that was grandfathered in had lapsed and was not renewed. The old four-plex license was removed. When the new owners bought it, they got a new rental license on the property that allows for 2 unrelated people or a family on each side. That is all the city would allow at that time.

Each side of the duplex is now huge. Over 2200 sq ft per side. Almost too big for the area. 

Here are my numbers as it sits:

Income:

$2600

Expenses:

$650 - (vacancy, repairs, cap ex, management)

$250- taxes and insurance

$180- owner paid utilities

$300 - my cash flow

TOTAL: $1380

Left to pay monthly mortgage: $1220

So given these numbers I can still get this thing to cash flow, and if for some magical reason I could ever get the city to change the rental license back to save the integrity of the property, this would be a home run! 

Looking for thoughts and opinions. Any one ever deal with rental licenses in their city?

The only thing you could do that cash flow does not show is what BP calls the BRRR method. Buy it at below market value, rehab the property (adding that good forced appreciation), rent the property out (you just rehabbed it so the rents will have to go up, hopefully), then refinance the property and take the money out and do it again. Very powerful method if you do your homework and due diligence on the repairs. This method requires a little more money and commitment, but I think carries the best potential.

I always like to start with the rents and reverse engineer it. Current rent $625 -25% total (vacancy repairs cap ex management) Assuming tenants pay all utilities $470 left before monthly payment, taxes, insurance -$500(estimated) Monthly mortgage payment & insurance (no tax) for a 15 year loan. OR -$350(estimated) Monthly mortgage payment & insurance (no tax) for a 30 year loan. Depending on what kind of loan you have out 15 year loan, cash flow = -$30 30 year loan, cash flow = $120 This does not take into consideration the rent increases. I always think that is situational. Depends if it has tenants in it currently? Or the tenants ability to pay the increases. You need to raise rents accordingly. A turnover in tenants could out weigh the rent increases. Wish you all the best.

Love this!

Nice to meet both of you. It’s always exciting to hear from people in the area. If your ever in town, reach out.

Hello all, I just wanted to reach out to the local area and introduce myself and invite others from the area to do the same. My name is Grant Pope. I am 24 years old and have been diligently studying real estate for the past two years. I graduated from Minnesota state Mankato with a bachelors degree in information technology. Love computers!! But love real estate more. I played on the basketball team here in Mankato for 5 years and learned a lot. Love the community and the people in it. I bought my first property, a single family home, about 18 months ago. Things have been going great! Great tenants! I am now on the hunt for my next property. I have worked hard and saved up enough money to be able to afford one. Now to find it. I just wanted to put this out in the local forum because I noticed there was nothing around the area. If your out there, introduce yourself. All the best.

- What was your approach in making a potential source of capital aware that you are looking for partnership?  Network network network. Write leaders stating your intents. When I first started I just kept waiting for something to happen and something to come to me. As soon as I changed what I was doing and started “actively” looking for people. They all of a sudden emerged from the weeds. - What did you think was most important to communicate about yourself initially? Knowledge and understanding the game. Know the terms, understand how to analyze a deal effectively. Use accurate numbers. - What are some of the most important aspects of successful Joint Venture? Hands down communication and fairness. So many people miss out on deals because the want to much of the deal. Be willing to give a little. The way I look at it is that if we can do one deal successfully, I have just tapped into someone else’s entire network. If things go well they will tell everyone they know. Deals lead to deals. No deals don’t bring you anything. All the best.