All Forum Posts by: Isaac Pepper

@Johana Balderrama in my market area I cant see where buying a new manufactured home would make sense. My first purchase for my own residence was a 1977 double wide and I quickly learned that while it was the right move for me at the time (very very low housing costs), it would be horrible to maintain with people who dont take care of things. Water damage was a huge problem when I bought it. Everything is made cheap, it had 1x2s instead of 1x4s, the floors are press board not real plywood, the walls are secured with staples, there is very little insulation.....the list goes on and on.

However I know repossessed homes are sold at a local toter/mover company. It would make sense to buy a used home, have it moved to and touched up and place tenants in it. This way you avoid the huge initial depreciation! Something to consider.

@Joscelyn S Johnson how much more is the mortgage than your BAH? How long until you can reach a rank your BAH increases and how much would the increase be? There was a time when DFAS lost my pay for 6 weeks and I had to doordash to make the mortgages.

@Jason Valchine sounds like you've been coaxing this owner a lot to make this deal happen. If your confident in the numbers dont work against yourself and rock the boat. Just focus on the close, the drop in interest rates is your "new price". Same purchase price and down payment, however you will have increased cash flow due to smaller monthly payments depending on how your financing this deal.

@Tyler Mulcahy no need to pay capital gains tax on a home you have lived 2 of the last 5 years in. Therefore no need for a 1031.

@Manuel Tueros if a better investment hasnt been identified, I dont see why not. I think the fact that you are planning on holding what money doesnt go to the mortgage for up keep of the property, is the best plan to go with for the first few years.

Best of luck, let us know if you end up closing!

@Manuel Tueros does your mortgage estimate of $2k include property taxes and property insurance?

Are you paying for closing costs or rolling them into the loan and have you accounted for that?

How much are you setting aside for vacancies, repairs, capex, etc? Do you need to provide any utilities or are the units metered separately? What about lawn care/snow removal?

Do you need to fix/replace/update anything to achieve the higher rent your hoping for? What will that cost?

@Manuel Tueros I'm not really sure where you are finding cashflow in these numbers. Maybe you can paint more of the picture to help us understand?

@Daniel Wang seems like you have identified the two most likely scenarios. I gather that you are in this for the long haul, so if your financials can handle it: upgrade one of the units and use it to experiment. If it works out how you are hoping for then continue with more of the units.

I'm very interested in this because I wonder this about some of my local areas! Best of luck!

@Jayson Greenblatt is the furnace gas or electric?

People confuse "efficient" with "economic". While a electric heater can be 100% efficient (meaning 1watt of electricity=3.4btu of heat, there is no loss), it isnt neccesarily economic. So if your used to heating with gas and begin to heat with electricity you will most likely see the bill raise. Furthermore, the electric will not give the same radiant feeling that gas or wood will.

If your budgeting for your CapEx replacing the furnace should not be a problem.

@Jonathan Masse I would think with a 7 plex you could get a dumpster. If its bi-weekly pickup I wouldnt go smaller than an 8 cubic yard dumpster. Have you considered this? Does your location have room for this? Can room be made for this? A lot of times you can save money by buying a dumpster instead of renting from the service provider.