All Forum Posts by: Hannah Hammond

 Thank you Kyle! I love that idea and have always wanted to do that, the problem is being able to find a property like that in the Phoenix market. But if I am able to, that would be a great investment for sure :)

 It would likely stick pretty close to 10%, but with no loan origination points and no strict terms. 

 Thank you Stephen! Yes, an annual interest rate of 10%. And I will make sure to read that book right away :)

Someone who I am close with wants to partner in real estate and is willing to private lend up to $200,000 at an interest rate of 10%. I have plenty of landlord experience in single family homes, but have not yet owned any multi family homes or done any fix and flips. I have done a ton of research on both types of investing, but am not completely sure which is the best place to jump in. If you were in my shoes, how would you invest the money? One large value add multi family complex? Residential home fix and flip? A couple of smaller value add multi families? There are so many options, I am not sure which would be best to start. I would prefer a decent size multi family with good cash flow and room to add forced appreciation, but I would really appreciate your thoughts and opinions! Thank you :)

There is another park right down the street for sale with 37 spaces, 18 occupied park owned homes, 7 occupied non park owned homes, and 12 vacant spaces. The NOI on this property is currently $73,730 and cash flow of $39,169 after estimated debt services. The park currently pays water and sewer, and rents are $240 which is below the other park's rents. There is also an on site built home with an office, as well as extra land. This park seems like it has a lot more upside, but I have heard to stay away from park owned homes, so should I not even look at this deal?

Also there is one vacant pad, so I could bring in one more home and sell it with financing  to increase my cash flow

The NOI is 29k a year

The expenses are 38% of the gross income. So the 29k is the number after expenses have been accounted for. 

Apparently the seller received an LOI this morning, so I would have to put it under contract before I have time to run a week long test ad. Thank you so much for the advice on the wording!

The lot rents are currently $250, which seems to be the going rate in the town. The only real way I can see an immediate increase in NOI would be to submeter.

I am not yet sure what the other lot rents are, the other mobile home parks in the area rent the home as well as the lot, rather than just the lot. I could ask him about not selling the land, but when we spoke it seemed that he wanted to sell the entire property. 

I don't think I can parcel off the apartments because they are right in the park, and have a "storage space" between them. Apparently the apartments can each be rented for about $425 a month. Selling the land separate would also be a possibility, there is land right across the street for sale for $15,000 an acre. 

How would you recommend I construct/word the test ad? And what would I say when people call, considering I won't actually have any homes for sale. Let me know, thank you!

Hey Everyone! I am looking to buy my first mobile home park and have found one for sale that I am interested in.

-No Park Owned Homes

-City water and Sewer

-2 apartments

-13 owner occupied spaces, One vacant space 

-Not currently sub metered 

-2 acres of adjacent raw land sold with park

-Approx $40,000 of notes on seller financed homes sold with park

-Very good condition and good monthly collection

-Along the main route through the city of Willcox, Arizona.

current expenses include manager, water, sewer, trash, taxes, insurance, and security lights = 38.42% of GI

NOI: $29,188

ASKING PRICE: $295,000

Seller financing 30 year amortization with 6 year balloon. $75,000 down.

My concern is that this park is located in an area that is "Middle of nowhere" status. Population and job growth declined 1% over the past year; however, many new developments have just been built including John Deer Sales center, Massive Family Dollar, New police station across from MHP, and more. 

No terms have yet been negotiated. Is this a potentially good deal? If so, what terms should I negotiate? I would really appreciate any advice, thank you so much!