All Forum Posts by: Gregory Schwartz

I'm looking for some advice from a local park owner in the eastern North Carolina area. Specifically, I am concerned about finding a capable property management company that will be willing to manage a smaller park (5-10 unit). The large majority of the parks I'm finding are park owned homes and I don't have the flexibility in my schedule to actively manage the maintenance on these parks. 

Thanks

Thanks for the fee back. Unfortunately I think the seller and possibly my broker are over valuing this property.  11 of the 12 MH are park owned and in rough shape. The owner is claiming maintenance cost is less than $1000 per year for each home. Based on some rough numbers the park is worth 200k max but hes asking 550k. 

Im analyzing my first MHP and the seller didnt include property management as an expense when calculating his NOI. Even if it will be self managed do should I still include management cost as part of the operating expenses? From what I can tell he is over valuing the property based on a unrealistically low operating expense. Keep in mind this is a small park (12 trailers).

As this process continues along I'm sure I will have more questions so I thank you in advance for your patience. 

@Will Gaston , this thread made me day trip about my days as a college kid renting 2 blocks from 5 points on Lee St. Our only criteria was to get as close to the bars as possible, and we definitely paid for this convenience.  And yes we also broke a window or 2 while we were there.

Great thread, you've inspired me to focus my search close to UNCW here in Wilmington, NC. 

@Account Closed I am currently searching for homes in the Holly Ridge/Hampstead area. After spending nearly everyday searching the MLS I can confidently say that off market is going to be your best bet to find a deal. So far I haven't found a deal that surpasses the 1.3% rental to house value ratio. As a Marine living in Holly Ridge, I can confirm that this area is sought after by Marines looking to live half way between base and Wilmington which makes for a strong rental market. If you have questions about particular neighborhoods feel free to PM me.

On a completely unrelated note, I grew up not far from Fredrick in Woodbine, MD. Small world.

Thanks for all the great input!

@Christopher K. you make some great points. Based on your insight I will likely look to make a low ball offer and plan on flipping the property, this would require more upfront capital, but will give us a "bigger pocket" for later deals. I've been aggressively searching the MLS but clearly need to expand my search to off market deals.

Does any one know of a wholesaler in the Wilmington / Hampstead area that deals in the 60-80k range? My long term strategy is to continue to pursue properties that fit BRRR until I can build the capital and experience to tackle commercial rentals.

@Nathan Gesner i appreciate the feedback. 

- I have no experience rehabbing or working with low income rentals. To mitigate this I did a rehab budget based on J Scott's book and worked in an extra 30% for unexpected cost. 

- if I find that I am overwhelmed managing the property, I have factored in 10% for property management, but would like to take a shot at self management. 

- I uses other sold 3/2 manufactured homes in the same neighborhood for my ARV then added in a 5k buffer.

- Besides the forced appreciation from the rehab I dont factor in any appreciation in my calculations. 

- Also worked in the budget is labor cost for the rehab, if I do the work I will save money and increase my CoC, but because am currently employed at 60hrs a week I will likely hire out contractors.

- I feel that 10% CapEx/maintenance should cover any damages (I have extra capital set aside for pop up expenses)

-I view this home as a stepping stone to a larger portfolio and a good way to learn about the business with out being fully invested in a large multifamily or extensive rehab that requires roof, foundation ect

@Bill F. 

- my ideal tenant is a family that wants the advantages the school district offers but cant afford a 40k down payment on a 200k home. I will also market to the military population from New River and Lejeune (Sgt BAH is $1100) and the folks who work in and around Wilmington but for similar reasons cant afford the area.

- I have not yet found a HML and or private money and will be the focus next week. If you know of anyone who might be interested I would greatly appreciate any suggestions

-if i cant refi I'm confident based on sold houses that I would be able to flip the house. In a desperate situation I can request a loan from family, who are willing to help

https://www.biggerpockets.com/forums/88/topics/456050-first-investments-property

Hey everyone, trying not to jump in the deep end before I can swim but my personality is to get over excited and ignore the warning signs. Hoping you all can sanity check me. 

After about 6 months and a few offers on different property types I think I've found a good niche in my area of Wilmington. Hampstead NC is a coastal town a few min from the beach, a short drive to downtown Wilmington and it boasts one of the best school districts in the area.  The avearage home sells for 250k. Nestled in the heart of the town is a upscale manufactured home neighborhood originally built on a golf course. The golf course is no longer operating but but community is still strong. With in that community I found a foreclosure with some promise.

Manufactured home built in 1985. 3/2 1500sqft. 

Asking : 60k     Looking to offer: 50k

Repairs: 30k (kitchen, master bath, flooring, paint inside and out, hot water heater)

ARV: 95K Since its a manufactured home I'm assuming the appraisal value will be low (85K)

Looking for hard money interest only for 12 months at 10%. (20% down = 16k, loan = 64k)

Rehab for 4 months, then find a renter at $950.

Cash out Refi based on 85k and a LTV 75% 64k loan (i dont get money back out of the deal but i pay off the hard money lender)

I factored in 10% property management, 10% repairs/capex, 5% vacancy rate 

Monthly cash flow $155. CoC 10.3%.

Concerns are finding a bank that will cash out refinance on a manufactured home.

Alternate exit strategy is to flip and walk away with 2-3k and a few lessons learned. 

I feel like the numbers are on the conservative side, if the rehab is under budget or the appraisal is higher then I will be able to pull cash back out of the deal. 

Thanks in advance. 

@Chris C. thanks for the advice, I feel like pulling money out of the deal will be the biggest challenge. I will be posting the deal in the analyze section of the forum. I'll ad a link once its posted, I would really appreciate your insight. Thanks again for all the hep