All Forum Posts by: Jacob Davis

@Joshua Diaz lucky for me from my research of my market the properties will allow $400/month rent, taxes are roughly only $200/year or Atleast until I add value to the properties, and insurance at roughly $60 per unit. I will begin making payments after 6 months of $300/month. So that will be roughly $1200/month cash flow although I’m going to take every penny from it and put it right back into the business for other costs and repairs. Although 2 of the 4 units need some major repairs, I’m quite lucky that mobile homes are cheap to fix because of the size and material requirements. So from my own estimates I may be $3500 in the hole from the start and that’s estimating at the higher end. So even though I have a lot of things that require me to get my hands dirty I believe this will be an amazing first investment. Just have to finish up the contracts and get the ball rolling

@Rudy Avila@Joshua Diaz

Well good news, the seller has contacted me again on these 4 properties and we have worked out seller financing with deferred payments and no down payment because of my own financial situation. I think this will be the best learning experience I can get because I can practice seller financing from both ends, rentals, rehabs, etc. now my only main question after everything I have researched is about closing costs. I’m assuming I will still have to pay for this once I pay off the properties but will I have to pay anything up front for putting the seller financing contract in place? Also, I know I’m jumping ahead on this but I wanted to ask as well, would it be plausible to put another unit on this property? There is plenty of land to do so and getting the building permit would be fairly easy. Sadly I can’t use another mobile home but I can use a modular or a cheaper type home. Any feedback is greatly appreciated and I truly thank you all for the prior input.

@Rudy Avila

Love that concept. Sadly I believe the seller has skipped town on me, he won’t reply to any of my calls or messages, although he sounded set on selling. Not sure of his situation but I’m staying positive and I know that I will get started one way or another. My options are limited at startup with no funds or credit for the time being but I’m picking up a second job to quicken the pace at which I can begin, it’s quite disheartening looking at all these seemingly good deals for rentals and not being able to obtain them. Any other advice any of you may have on getting started while being in this situation?

@Eric Nguyen @Joshua Diaz

Sorry I’m not explaining correctly. This was never a park to begin with. It’s just land with Mobile homes on it that are all next to each other but with all different mailing addresses. It’s completely legal as they sit individually. It’s just the homes themselves have been grandfathered in and the town cannot force me to remove them. If I were to try to add another mobile home on the property then it would go against city ordinance unless I am able to get the permit for the property to be an actual mobile home park. As far as I dreams, goals, aspirations etc go, I’m all about simple buy and hold for the long run. In my local market I wish to build a stream of income solely from rental properties that meet or exceed a cash flow of $10k/month after all expenses.

@Joshua Diaz @Rudy Avila

Update.

Sadly the property isn’t permitted to be a mobile home park and I can’t move any more homes into the site without it having the permits for the park and building. Although on the upside this is actually 4 properties in one, with a fair amount of yard for tenants I can move in. Plus 2 of the 4 properties are very clean. Needing no more than $400 to $500 combined to make up to date. Also, the owner dropped his price to $30k and is willing to do anything to help me purchase the properties. (Seller financing) so I think I have a great deal that from my estimates will cash flow Atleast $500/month if both rented. Sadly it’s not a lot but there is so many chances to add value to these properties and to also build on that I see very little downside. I know I’m jumping ahead on this but I have to ask, if I wanted to pull cash out of these properties to purchase another later on, how would I do that if I don’t have financing already on the properties? Would I just get it appraised and if it’s a higher value than what I’m paying just use that extra for another endeavor? Thanks again for all of your input.

@Joshua Diaz how can I find out if the park is legally allowed to be a mobile home park? Also, what do you mean by verifying the spaces? Do you mean making sure that the room left is capable of having other mobile homes? Because there is space left for 3 more homes but the concrete slabs aren’t poured yet. Good thing I know how to pour concrete haha.

@Joshua Diaz @Rudy Avila thank you both again. Since this is my first investment I would like to explain as much as I can to both of you. So again the park has 4 units thus far, no renters, only 2 of the 4 seem to be livable, and it looks as though they are all submetered. From my understanding there are no outstanding liens or bills on the property besides the taxes, but that will just be estimated into my costs once I get quotes from a few sources on the 2 units to maintain their use and demolishing the other 2. The owner is asking $35,000, the reason he is wanting this price is because he just wants out of the property with the cash to build a garage for some shoe cars. From the way he was talking he was insistent on making sure it was a good deal for me that way I can profit from it. So I believe there is a good chance to talk him down on the price, while hopefully still achieving seller financing, or Atleast have it in the terms that he finances for a period of time until I receive the funds to purchase outright. With all of that being said, average 2 bed homes rents are $773/month, the city has a population of 29k and rising, unemployment 3.5%, median income 36k, and median home price is 80k, with all of those prices being the lowest of the stats. As long as the terms can be set correctly I believe I may have a deal on my hands, although a lot of initial work on my part, good thing I’m not afraid to get my hands dirty haha. Is there anything else I’m forgetting? Or should I jump into it and have fun once I find the numbers make sense? Thank you both so much again for the help. It’s great to not feel like I’m on my own with this.

@Joshua Diaz thank you so much for the advice. The property is in worse shape than I predicted but there is a lot of value add opportunities available. 2 of the 4 homes seem to be liveable but the other 2 will most likely have to be demolished. All of the criteria you stated for the city is slightly under that but luckily there are new businesses being built as we speak, there is a Walmart just 5 miles away, and the property doesn’t seem to be near any “slum areas.” So I think as long as I can talk the owner down on the price and work out possible seller financing then this will be a great starting point. Also, would you have any suggestions if the owner wants all cash up front? Thank you again for helping me out with this.

Hello everyone! New to the site but not new to the podcasts Atleast, sadly I tried posting on the BiggerPockets.com/new just to introduce myself but the page was unavailable so here I am. As the title states I’m just beginning in my real estate career and I’m very anxious yet excited to get the ball rolling. I’ve learned all I think I can without actually diving in, and I believe I’m on a great start. A local investor I randomly came in contact with is wanting to sell me his mobile home park (only 6 to 7 units) but I thought that would be a great opportunity to just get started. Credit and large finance wise I’m shot for starting out but I still believe there is a way I can make this happen, so long as the deal is good. I will be checking out the property tomorrow evening and hopefully getting better insight as to what I’m getting in to. So I must ask, is there anything I should be wary of getting into this kind of property? And if I am able to purchase, what sort of “terms” should I strive for? Thanks in advance for the feedback and thank you as well for reading this all the way through. Happy hunting my fellow dreamers!