All Forum Posts by: Jeff McNutt

I just finished a rehab, it’s my first buy and hold soon to be BRRRR. I am starting to get a decent amount of interest. I am using the tenant screening process under tools on Bigger Pockets (Smartmove). The first two applicants gave me a decline recommendation the third was an accept. I have 5 move people scheduled to see the Home this week. My question is when do I stop? Should I call it quits when I find the first good applicant? Should I wait and go two weeks then pick the best available during that time frame? Also any suggestions on turning people down? How do you go about it? What do I have to be careful of. I know it’s easy for the ones who don’t meet the qualifications but what if 3 people all qualify and I pick one because they seem to be a better fit. Do I just say it’s been filled or do I need to advise them of the reason they were not selected. I would love to hear what other people do. Thanks for the help. This site and podcast are changing my life!!! Jeff

Anyone have recommendations for a good CPA in the ST. Louis/Jefferson County area.  Looking for someone who has a focus in real estate.

I am closing on my first rental property. A few issues have come up from the lender. Here is the break down. Rough estimate Purchase Price $31,000 Down payment $24,500 Lender 30 year fixed 5% I started an LLC and have $20,00 in that account. HELOC $25,000 5.5%. Personal line of credit $7,500 7%. The lender doesn't want to accept the down payment from my LLC account (cash) since the Mortgage is in my personal name and the account is my LLC business account. My options are. 1. Use the HELOC and cash to do a cash deal. 2.Use the HELOC as a down payment I will have enough cash to rehab if I don't use a lender and save closing cost of around $2,600. And would plan on doing a BRRRR. I can immediately move the title to the LLC and start building some history. With a bank loan I could hold on to more of my own cash I'm trying to figure out what the best option would be or is it a toss up. Any thoughts or suggestions would be greatly appreciated. I don't want to make a rash decision.

@Account Closed I totally agree on valuing the park on the current producing income.  I had not thought much about the age of the trailers.  They appear to be older trailers, not falling down by any means but you wouldn't call them nice either.  I am starting to think the cost to get it in good shape may be much higher than originally expected.

Thanks for all the input! Just to throw a little more info in. The park is on public sewer and a shared well.

This is my first time looking into a mobile home park.  I have flipped 3 homes and I am closing on my first by and hold next month.  I was hoping for some advise from the community on a mobile home park I am looking at.  Here are the numbers.

5 Acres  in Missouri

22 Lots

13 rented at $260 a month

4 empty lots

3 park owned trailers not occupied

2 abandoned trailers

There is a Laundry mat on site which is not operational (hasn't been for 18 months) and a small 2/1 apt on the back of this building (not being rented)

Asking $250,000  

They say there is a Gross Op income of $43,000, Exp of $21,000, for NOI of $22,000. (I know 13x$260 is not 43,000, not sure what else they are including at this point.)

I feel the asking is too high.  I am thinking closer to $160,000 with these initial numbers.  The 5 trailers not occupied need to be removed (no idea yet on the cost of that).  The county will not allow new pads to be added to open acreage.  Any thoughts on this I now the details are probably too vague.  Typical cap rates in Missouri for trailer court? Costs to remove Trailers? Bring new one in?  Additional Resources I can look into.  I have listened to all the podcast on Mobile home investing twice.  I am trying to become as educated as possible.

Originally posted by @Jason L.:

https://www.biggerpockets.com/renewsblog/2015/02/1...

Thanks, @Jason L, I really appreciate it.

@Brandon Turner @Joshua Dorkin can you help me out.  I am meeting with an attorney today and want to review that podcast.

Does anyone know which podcast talked about using series LLC. The entire show was about protecting your assets I think.

Thanks Hattie Dizmond for the info. I do have J Scott's book on rehab estimates. The price range is a little wide for me to feel really comfortable. Maybe I will plug in the upper ranges and make the numbers work that way. This is a full guy rehab so it's a lot of work. My other thought was to make a low ball offer them get bids and do whatever wool I need to do to make sure I make a profit. This at least would give me some experience. Thanks again