All Forum Posts by: Henry Kaldenbaugh

My decimal point was off. $233.33/ft. sq.

$23.33/sq.ft is not a realistic number for a total makeover rehab in your area.  Also, your financing costs are about 1/2 of what they should realistically be.  My overall opinion is that your analysis is not realistic.

Sounds like you've got the prefect opportunity to jump in with your father-in-law.  That OJT will jump start you.  You're in the right place mentally, but you need to mind the market.  Houston is a big place and you will find all sorts of opportunities/traps.  Recent flooding has devastated whole communities.  Buyer beware.

@Georgui Kasaev Should be a great event.  I've been liking your e-listings  Unfortunately we're stuck in Arizona at the moment, but I will get down there to say hello and look at Athens rentals.

If it was mortgaged with the land parcel, it was supposed to be tied to the foundation.  This means permanent anchors to fixed piers or a linear foundation.  These can be bolts or turnbuckles.  The foundation tie should be strong enough to withstand a hurricane or tornado.
Sounds like you need an inspection by someone who is familiar with this.

IMHO Wholesaling mobile homes would be difficult at best.  Mobile homes have titles just like automobiles.  In fact, a double wide has two titles, one for each half as it travels down the highway.  In a MHP the mobile is separate from the ground lease.
Used mobile homes (manufactured homes) depreciate very rapidly.  In Arizona, if you have a new manufactured home that is tied to the foundation, you can obtain a mortgage.  But, and this is a big one,  If it is three years old or has been moved, you can no longer mortgage it with the lot.  Used mobile or manufactured homes are very problematic  in terms of moving them into a MHP.  The older they are the more problematic it becomes.

These are all good suggestions.  Don't be afraid to buy an occupied property.  After you close you can start to bring the rents up to market.  You don't want to drive tenants away by raising the rent too high too fast.  Unoccupied units and tenant rollover is what will kill your cash flow.

You really want to do a detailed analysis of the costs, both maintenance and rehab. I agree with @Justin Frank about the gates locks and security cameras.  If it was built in the seventies these will need to be updated.  Is the basic construction block or frame?  block construction is much sturdier and will stand the usual knocks and dents.

Yes, go ahead and deduct the tools.  they are needed for your rental.  the fact that you are house hacking is irrelevant, besides you will be moving soon.

This morning, I happened on a community here, in Arizona, that is full of dilapidated pre-HUD mobiles on single lots. A mobile lot with utilities in (water, good septic, electrical hookup, and propane tank or natural gas connection) and a dilapidated pre-HUD mobile will bring $30,000-$45,000. For $30,000 the mobile can be demo'd and replaced with a newer to new Mobile and rent for $800/m for a single wide to $1200 for a 3BR double wide.

These are preferable to MHP lots because of privacy and space.  I am interested to see if anyone else has seen this gentrification of manufactured home communities.