All Forum Posts by: Jason Ray Richardson

@Scott Cooper

I think both are bad ideas. You don't want to invest in war zones but you don't want zero returns either. A couple months of vacancies can bankrupt the whole plan. Look to invest in other areas maybe another state or another asset class. I'm getting good returns on mobile home parks and there are many available around the country.

 With most buys you have a long enough period to do proper due diligence. Don't be so ready to make the deal that you rush past things. A good guide can be found at www.mobilehomeuniversity.com . Like with me I went through the property only one time with the owner, and he was talking about the park owned home tenants as if they were still renting . I never followed through on that. They were both gone (not that I blame them since the water was off for 4 months)  and the places were dumps. Luckily I got such a good deal it didn't derail anything. However, if it had been a bigger park or if there had been more POH then it could have been problematic. For example his rent rolls were totally false, I should have verified those. 

 I do it myself, since it's not that much out of the way and I wanted my hands on it through the process.

 No it's in Meridian. I am supposed to be closing on a park here in Brookhaven next month. 

As it's laid out now, 18. There are more than that sub-meters where they used to have more but as new homes moved in it wasn't done right. But with the cost of moving things around probably not worth moving homes over to use those extra meters.

Investment Info:

Mobile home buy & hold investment.

Purchase price: $36,000

Cash invested: $40,000 (Counting repairs and the purchase price)

Mobile Home Park in disrepair. Now cash flowing 2,000 a month not counting the note on one of the homes a tenant is buying.

What made you interested in investing in this type of deal?

Entry Price. It was my first park and since it was so cheap a lot could go wrong and I still be ok. In other words, low risk.

How did you find this deal and how did you negotiate it?

A wholesaler had sent it to me. Due to circumstances around the park it had to be a quick close. I had just BRRR a property that I had purchased the year before so I had the cash.

How did you finance this deal?

I paid cash.

How did you add value to the deal?

Basically cleaned it up so that the tenants couldn't argue with the rent increase.

What was the outcome?

A cash flowing property with very little oversight now. Low maintenance.

Lessons learned? Challenges?

Do more due diligence by asking more questions. Dealing with the city is probably the biggest challenge.

I must admit that it does make me pause. However I am interested in finding those diamonds in the rough that everyone else is missing so I view it as a treasure hunt. The house I now live in was on the market for over a year due to the fact that the price was too high, the termite damage, and everything else that was wrong. I bought it for 30,000 off the asking price and then after totally renovating EVERYTHING (wiring, new ac units, piping, sheet rock, etc, etc.) I'm in at 150,000 and it just appraised for 224,000

Helping someone that is destitute and thankful is one thing. But these people brag that 1) if you saw us you couldn't tell that we are on disability payments. So they probably have really nice clothes and the newest Iphone. 2) Brag about the fact they haven't paid rent in 14 years??!! Brag that you are a freeloader and a thief??!!

On top of their stupidity took a slam at the US saying that this would never happen in the US. DUH and eventually it wont happen in Italy. This is the kind of lunacy the socialist morons want America to be full of.

Cons- small park, unable to expand, unable to scale, Park owned homes, higher non fixed costs

Pros-smaller so that the mistakes you make on your first one won't be as costly

Having done research from people more knowledgeable in the space than I am (I only have a few parks), on figuring the value you should only figure a fixed value of the homes 5-10,000 each not what they bring in. Then there is some multiplier that you use per pad. Just looking at the surface looks like this park is overpriced.

If it's in a historic district check zoning to make sure you wont have an issue filling up those empty spaces.