All Forum Posts by: JC K.

I own one that I developed.  The answer to those questions varies significantly depending on the type of facility (open, covered, enclosed, mixed), geographical location, competition, and local laws.  I'd say start by defining what type of facility you want. 

I am a big fan of unmanned facilities.  Here's a site with some related content.  https://rvstorageinfo.com/

I secured an SBA loan with very good terms for the purchase of raw land and development of an RV storage facility.  My search led me to this website. https://www.sba504blog.com/tag...  Prior to this I had no idea SBA loans were this good.  The author is John King, who is a very knowledgeable broker.  I normally steer away from brokers, but in this case I recommend giving him a call.  

An old post, but a good question. RV storage is the best form of real estate investing that I’ve encountered. First, RV storage facilities are great income producers and can be operated very passively, often without an onsite manager. The question is can a profitable facility be purchased at the right price.

As with every good investment, it has become more and more difficult to find good ones. More recently I decided to develop one, instead.

After analyzing enough parks you’ll have your own rule of thumb, but if you want to try to adopt the 1% rule to MHPs I would change it to 1.5%.  1.5% gets me to a 10% cap rate using a 40% expense ratio. 

At the end of the day each park worth a look will require evaluation as mentioned above. 

Too many of us are so focused on price that we lose sight of a more important metric, cash on cash return.  Leverage is hard to beat. 

If you develop pads only you could end up with an empty park and no income. 

If you have $3.4M to invest why not buy a a couple of $7M parks and make 20% COC instead?

It depends on a few variables. I think 15 is about the minimum, unless you intend to manage it yourself, but it all comes down to math.  Terms are important, lot rent amounts are important, utility expenses, tax, etc. So, gather all that info and see what the math says. 

Answer:

1) Contact all mobile home movers and tell them to bring you deals. develop relationships with them. 

2) Get the IFTTT app and setup Craigslist searches. 

3) Search your local FB for sale groups. 

4) Place ads in Craigslist’s saying you’ll buy homes cash. 

5) If you know any wholesalers tell them about your situation. They often get MH offers and good deals. 

If you do these things you’ll find what you are looking for. Be patient. Don’t jump on a bad deal. Pull the trigger quickly when a good deal shows up. 

Hi!  I am looking for an affordable property management software that will also help me manage loans made to others.  I have a few owner financed real estate deals I’d like to track efficiently while also managing rental income. 

It appears quickbooks and a separate loan manager application or rent manager have the “lender” feature I am looking for. However, those two options are too pricey for me. Any suggestions out there?  

Something doesn’t seem right.  The first thing I do when evaluating a park is to look at the cost per occupied pad. If the cost per pad is at about $20K, then I am interested.  That number will very depending on market location and a bunch of other things.  If the number is $40K per pad, then the location (rents) better be double the US average. What is the current lot rent?

Nevertheless, definitely continue nurturing that relationship. Learn as much as you can about the financials and meet with every local bank. 

17% cap rate may sound attractive, unless you are considering the income from the POHs in the cap rate calculation.