All Forum Posts by: Account Closed

I self manage my 4 multifamily units here but I know @Lynda Poe is local.

Looking for outside advice here. I️ think my emotions are getting the best of me and I️ would value some words of wisdom. I’m under contract for a 5 unit multifamily in my home town. 4000 sq ft, 1 bed/bath units with covered parking for 4 and an enclosed garage for #5. Monthly rent is $2,550 Purchase price 225,000 Initial contract was as is but we negotiated to add an inspection contingency. The inspection found minor issues with the exception of the roof. The inspector recommended a roofing contractor to evaluate based on obvious damage. Roofing contractor said it needs full replacement at $6,000 but could get by with $300 repair. We passed this info on to the buyer. Buyer refuses to pay any additional money at all. Buyer is willing to replace shingles on his own but will not pay our roofer to do it. I’m mad in principle but the 300 isn’t a big deal. The eventual 6,000 is a bigger deal. I️ can still walk away but should I️ just suck it up and have roof replaced when I️ buy? That would bring cost to 231,000 for potential 2,550/month. Tenant pays all expenses. Tax about 1800 and insurance 2500 per year. Thanks!

Not sure why home are vacant- excellent question. I will manage. Current owner is ill, possibly why there are vacancies. Septic and well is an unknown deal to me. Why is it undesirable? Maintenance costs? Thanks again

Thanks for the thoughts. Literally what drew me in is that it is available and near me. I like the idea of 2-3k monthly rent at a price point of 150k, but I dunno how realistic those rents can be. I've got good w2 income to supplement park development if necessary. I think of it as relatively hands off with only 7 lots. My plan is to sell the homes for anything and just collect lot rent

Thanks- I did listen to that and found it very helpful. My issue is that the seller has kept poor records. Rents are reported on a handwritten sheet and I have tax returns that show 2 properties lumped. Guess I should just find comparable lot rent for local parks and assume 7 average rents to determine monthly Possible income and base price off that

Any rules of thumb on pricing small rural parks? Rents from landlord are 250-550 per month with him owning 7 houses and 2.5 acres land. How would I arrive at a reasonable price? Average is about 2800/month in rent but I'm not sure how to estimate expenses on old mobile homes. 50% rule gives 1400/month.. 16,800 per year. 10 cap would price it at 168k. Asking price is 175k. Seems close?

Anyone with any guidance on buying older small parks?

Bump

About 2.5 acres with 7 mobiles. 2 large storage buildings and room for 2-3 more lots but no extra hook ups. Septic, electric and well water. Landlord owns all mobiles. The existing homes are in bad shape and the area is not great but not horrible. Zero amenities. Really just a piece of land with some hook ups and trees in a relatively poor but big town about 30 minutes from my house. Owner is older with health issues, has kept poor records and willing to owner finance at 20% down, 8% for 10 years. I could obtain better terms via local bank. According to his hand written/iffy records he rents the 7 lots for about 3,000/month. 2 are currently vacant. Asking price is ~173k My plan would be to sell the mobiles asap. Maybe 5k a piece? Then charge lot rent of 200-300 per unit with possibility of adding lots. I'm touring property Friday. Considering offering around 120k. Plans to sell all homes for 20-30k total and then rent lots for around 2000/month. Thoughts? Any good rules of thumb or guidelines for developing a price for smallish mobile lots? Thanks!

Can someone give me guidance on a personal example... say I buy a property for 270,000 with 20% down (54k). I put in 20,000 and it now appraises for 350,000. I go to the bank and get a cash out refi for 80%= 280,000. So I pay off existing loan of (270-54) 216k and have (280-216) 74k remaining. Does this mean I'm in the property for 0 of my own cash? Please correct my thought mistakes!