All Forum Posts by: Jennifer Huba

He only stated that investment real estate type business to not qualify for any SBA loans.  Earlier this week, just before I made the original post about this, I did verify on the SBA website that it said the same thing.  I just went back to the SBA website and I am no longer able to find the list of excluded business types that I found before.  I don't know if the policy changed or if they moved it.  I can tell you that I saw it after the pdf at the link was created.   I sent my banker an email asking him to look into it again.  I told him that originally investment real estate was included but that was changed...to see what he says.

Mark,  We did fill out the loan app on SBA.gov.  PNC is one of the banks that can assist as well.  We also do some banking with them.  Our personal rep is also the guy in charge of SBA loans, so we asked him about it and he's the one that stated we did not qualify.

FYI...PNC Bank just got back to me about the SBA loans.  They stated that Investment Real Estate types of businesses do not qualify for any SBA related loan programs.   I used some 401k money to create my company and purchase my mobile home park...so this is what they consider me to be.

We just bought our Mobile Home Court on 2/28. I did not send a letter regarding COVID since we are still getting to know everyone.  22 out of 24 paid on time for April.

One person contacted me a couple weeks ago about having difficulty being able to get a job because her children are home now.  At the time, she had no knowledge of the stimulus bill, etc., but was thrilled when I told her.  She plans to pay April rent by April 30.

One person (who moved in in early March) did not pay.  We touched base with her and she stated that she's waiting for her unemployment check to arrive, and offered that she had no problem paying the $50 late fee.

I did have one other person that stated she would not be able to pay, but did actually pay in full.

If a tenant expresses concern, we are providing a questionnaire to them asking for their employer's name ( so we can verify), if they applied for unemployment, if they are aware of the stimulus, what their plans are to pay the rent, etc. My plan was to waive the late fee for anyone that contacts us with their concerns and fills out the form and to have them pay April rent by the end of April since they should have a check by then.  

I have that problem every 3 weeks.  When I look in my profile area it says that I need to verify my email address.  I press the button to do so, but I never get the email.  When support sends me the email, I click on it, but it still doesn't fix the issue.  

It takes several emails every 3 weeks to get this resolved.  Eventually, support fixes something on their side and the verification error goes away and I start getting notifications again.  

Good luck.

I'm in the process of buying a mobile home court with 22 pads. It was converted to city sewer and water about 10 years ago.

My understanding is that I need electric, water, and sewer inspections of each Pad. Is this correct? (Sewer alone is $275 per hour.)

We just received all of the paperwork from the current owner showing Bill's, etc.  

It has public water and sewer that is billed to the individual tenants.  If I recall correctly, it was put in 10 or so years ago.  We plan to have the pipes checked during inspection. They were put in new when converted to public utilities. 

Gravel road with equipment to rake it.

Fence on one side is in good condition and owned by neighboring company.  

Common area is some grass at rear with basic shelter and picnic tables. 

Looking at rent rolls for last 8 years.  One pad was vacant.  I believe there was no home on the pad...its on my list to ask about. (I know he also paid the town their fee for a new pad.)  One other lot had a vacancy for a couple months.  One pad for one month.  Everything else has been occupied.  A few names may have changed...but new people came in immediately after people left.  

 He typically does little rehab.  Mostly wiping down.  He has one vacant home now that we walked thru to give us an idea of the condition that he rents them in.  

Replace instead of rehabbing if needed- I thought most were from 70s but looks like 80s and a few 90s.  I would not place a new home in the park.  I can easily get a used home.  For much, much less. 

There is room for additional income with this property as well.  I can pull in another $1100/m.

Still digging thru the paperwork....but no red flags yet.  

Our bank should do 5.5 with 25% down, 25-30yr amortization.  But any other bank recommendations are appreciated. 

Thanks for the response Frank.  Seems like a worthwhile prospect.  ...easier than having 10-15 properties all over the place with much, much lower returns.   I've been searching for rental homes/multis for months with no luck.  

25 Lots are fully occupied and bring in $6650/m. Most mobile homes are owned by tenants with a few rent to owns. ( Monthly income for RTO is $1k).

Over the next 2 years, I would increase lots rent to bring in another $600 the first year and an additional $600 the second year. So... by the end of the 2nd year, I'd be collecting $7,850/m + the RTOs.  Even with the increases, my lot rents would be over $100/m less than other lots in the area.

MH are older 70s. Park well kept with Public Water and Sewer.  Tenants pay for ALL their utilities.

Expenses of $1,300/m include common electric, garbage, insurance, property taxes, land maintenance. 

I would have no maintenance fees on MH since they are owned by tenants. RTO agreements also state that tenant is responsible for all maintenance, etc.

Owner wants $750k which seems high...but expenses are very low (and would obviously be fully verified prior to closing). 

This property would be used for my eventual retirement income (over 15 years away).  No monthly profits would be withdrawn for personal use.  All would stay with property.  If used for extra mortgage payments, it could be paid off in less than 9 years.

Thoughts?