All Forum Posts by: Jared Van Horn

I just finished redoing 2 duplex on one lot. Each unit is a 3/2 with 1100 sq ft each. One duplex had a fire in it and I had it down to studs. New everything beyond studs. Custom black oak cabinets. Very modern and no corners were cut. Back duplex got pretty much a full makeover from sheetrock on. All units look the same. I have right at 700,000 into them with projected rent at 1700-1850 per unit. Each unit has a yard and patio. I have a hard money loan through a family member and that is included in that 700k.  I can sell the units hopefully for about 840,000 before realtor fees of 5 percent and whatever I'll be taxed on. Am I silly for wanting to sell it and put it towards my next rental or should I be trying to keep this? The 700k loan is kind of a scary thought rn. I've flipped about 6 houses but now I'm wanting to do them and hold. I just rented out my first property and want to continue and grow. 

 I guess I don't see where a mobile home would cost $200 a month in repairs. Also, I would only own 2 mobile homes on the property and the other is 7 spots for long term rv parking with hook ups. Tenants bring their own trailer, so for me I don't have to worry about maintenance on their trailers. Just the spot they are parked in. In the contract the tenants are required to keep insurance still on their trailers while renting. There should not be much showing of trailers or spots unless one comes up available for rent, which I do live less than a mile or two away. Not arguing with you but just trying to understand everything you've mentioned.  The county also would allow the shop to be turned into a separate unit such as a small studio and the front to add another mobile home or a small stick built home. Taxes are $2,000 a year which I like. Still waiting on other figures from sellers. 

 Just curious on why your thoughts on that. If the two mobile homes bring me in $2400 and the 7 spots bring me in $2400 and my mortgage is right around 3k, how would this be a deal to run away from. Especially with taxes on the whole property being only $2,000 a year. 

a single family home in this town would be around 200-300k and probably bring in $1400 a month. Rentals are hard to come by here. 

This property is very clean with 7 tenants supplying their own trailer and 2 in mobiles that I would own. 

Thanks.

Just recently got a small mobile home / trailer park under contract. Curious on thoughts as far as investment. I'm still waiting on a few expenses and inspections to come back so still have time to pull out if something comes back a red flag. The property consist of 7 trailer spots (small personal rvs) with sewer hook ups and power on each spot. Separate power meters for each spot and tenants pay for their own power use. On the same lot at the end is a single wide mobile home. There is a community laundry/bath house with coin operated washer and dryers that the trailer spots can use. On another attached lot is a newer 1700 sqft double wide with a stick built shop that is beside and is fully insulated with power. The property is 1.6 acres in total with the option to ad a stick built home to the front or another double wide down the road. (Can't ad more trailer spots due to being grandfathered in) whole park is super clean and well kept. All spots are rented except for big mobile home due to past owner living in that unit. 

Rent as followed. 

Trailer spots 1-7 fully rented with rents ranging from $330-380 totalling $2440 

spot 8 is single wide rented at $800

big mobile and shop to be rented at $1600 

total rent $4840

bills are garbage bin at $102 a month (covers all units)

taxes $2000 a year

Park owner pays garbage, water and sewer.

property is on well but public sewer (waiting for those figures.)

room for another $1400 unit down the road 

park is very clean as well as the guest there and in great area. 

agreed price is 550k

loan is at 5% from private lender. Does this deal seem nuts or is it something that you would pass on.  Sorry for the long post.

So I am 30 years old and have flipped 4 houses so far. My goal is rentals but I wanted to make some cash from flipping to start. After my 3rd flip, I bought an acre piece of property that is flat and zoned multi family. I got an engineer to design the property to figure out what I could fit on it. We ended up being able to fit 6 duplexes on the lot for a total of 12 units. each unit is roughly 1400 square ft 3 bed 2.5 bath with single garage on each.  The city has approved it and it is ready to go. Rents would be around the $1800 mark give or take a little. All in I'm at $100,000 for the lot and all the engineering and approval ready to go which i feel like is pretty good for 12 units.  This is where my progress has halted.  Building materials are high right now so I'd imagine building cost would be around the $200 per square ft range. If you add all the units up its 16,800 sq ft. Ball park estimate is over 3 million to build all these units off my numbers. I could have roughly 200k down for this but I don't know what to do next or if it would even pencil out. Are my numbers way off? would I be better off selling this lot and starting smaller? I may be able to start by only building 2 units first but city didn't seem to keen on that since they aren't all on individual lots.  Lot is located in southern Oregon and the town is in need of rentals.  Just curious on peoples thoughts on this on how to proceed or what they would recommend. Picture is of the lot with the 12 units approved by the city. Thanks. Jared

I guess my big question is it smarter to put more down like 70% or just do the minimum to get qualified if a second property is what my goal is or to put a lower amount down if my tenants are paying my mortgage. Just wondering if putting so much money into one is smart to show more positive equity or spreading that wealth and trying to get multiple with less in the first house. Hope that makes sense like it does in my head haha.

So my name is Jared (I'm 25) and I've been wanting to invest in real estate and I feel like the area I want to invest in is perfect for making money for my needs. I lived in the town that I want to invest in and I really know the market and where to buy. The town is a college town and they always need rentals. The Nice thing is that this is not a party school and people go to school to go to school which is nice when wanting to invest in rentals.  These are my questions....... I can pick up a pretty much turn key house for about 50-60k. Maybe needing paint and simple stuff like that. I personally have 13,000 saved for me to start this and I have a family investor that would be willing to almost get me the rest. These houses rent for right around 700-800. Would it be smarter to Pay say 45k and finance the rest and only have super low payments and use the equity into another house? or put a lot less down? This is basically what I'm trying to figure out in order to start this process. I'd like to get 4 rentals in one year once I start and to a lender after the first, would having almost the whole thing paid off and show it bringing me a positive of like 500-600 a month or saving some of the money two have a 2nd down payment. 

Option 1

House Price 50,000

Down payment 40,000

Payment 100ish

Property income 750

(in the positive 650)

Option 2

House price 50,000

Down payment 10,000

payment 400ish

Property income 750

(In the positive 350) 

Which one would a lender like to see in order to get a 2nd home, then 3rd so on and so on. 

Thanks, Jared