All Forum Posts by: Jocelyn Hinz

Thank you for the response! I think we need to get a better price to make this work. So what's the 50% capex rule? I'm trying to understand more about capex and the difference for maintenance and repair. 

Just talked to the commercial lender. I am shocked the said a commercial appraisal is $3000-$3500! Way more than I expected. 

Still hoping to make this deal work, I'll update with any changes.

Hello everyone,

We're looking at a deal and would love some input from some veterans. This is a 10 plex in our town, just five minutes from our house. We would do the property management ourselves at least initially, but of course I'm factoring in those numbers because the goal would be to turn it over to a property manager some day. Here are the numbers:

Asking Price $495,000

(they had it listed at 399 about a year and a half ago)

Year Built: 1995

(10) 2/1 units, 1100 sq ft townhouse style with laundry in attached shed, very poor design on laundry in unheated space)

$6175 Gross monthly rent (9 units@625, 1 @ 550)

$74100 Gross Annual

$6272 Taxes

$1900 Insurance

$7410 Property Manager (figuring 10%)

$950 Garbage

$4968 Water/Sewer

$7410 Maintenance and repairs (figuring 10%)

$1200 Snow/Lawn

$7410 Vacancy (figuring 10%)

$37520 Total Annual Expenses

$36,580 Net Operating Income

Thinking we could get it around $425,000 so 8.6% cap rate

I know I need to factor in the loan/closing costs, I'm in the initial phases of finding out what that would be. Any input is much appreciated, thank you in advance

Thank you Jefferson. I think we are definitely going to shy away from this. We just don't know enough and it just doesn't look like the deal for us.

Thanks everyone for the input!

Thanks George. We'll have to look into the sewer cost. I'm pretty familiar with septics at least for SF, but sewer would definitely be preferred. 

Definitely looking at the extra land as gravy, would be great if we could get something for it but I don't want to factor that in to the valuation. Park pays water and garbage.

In his numbers the liability insurance seems really low (like $500/year), I know the park owner owns his own insurance company so I'm wondering how skewed that number is. I need to run it by our insurance company but I'm wondering if anyone knows a ballpark number?

I think the numbers overall look pretty good but it's definitely a new venture for us so I'm proceeding with a lot of caution!

Thanks!

I am looking at a potential mobile home park purchase and would love some input on the deal. It has 18 lots sitting on about 3 acres of a 19 acre parcel. Lot rents are $325/month, currently 17 are filled. The sale would come with the vacant mobile. The asking price is $435,000. 

I'm thinking we could sell off 10-15 acres of land, it is a fairly desirable area and the land wouldn't feel right on top of the park as it is wooded and hilly. There's also the possibility to add a few units. Currently on a septic that can't be expanded, though sewer should be coming, and it's on city water. Owner is saying expenses are about $10,000 per year. No owner financing, so I'm not sure how we would finance it, but I think we could make something work. It's definitely not pretty, mostly older single wides and stuff everywhere! There's also a 3 bay garage for storage that could provide some extra income, it's very near to a lake.

Thank you!

Thank you Jon! I was thinking short sale might be what they need to do, and I'll suggest that to them.

We own a property that is half of a duplex in our town. We bought it about four months ago for $65,500. Put about $4000 into it, with new carpet, paint and a fridge, and we now have it rented for $850/month.

The other half has been for sale since we bought our place, at $125,000. We of course would like to own both sides of the duplex but can't really justify paying that much. They just took it off the market and I contacted the owners and they owe $110,000. Trying to decide if it's worth it to own it and if anyone had any thoughts on how to structure that deal? It would probably be ready to rent with minimal to no improvements, at the same price of $850. Also wondering if we owned the whole unit if we could somehow have it combined to pay one tax bill on it and maybe get that down some.

Any words of advice would be greatly appreciated!!

Hi everyone. I'm a new investor in North Idaho. I've always had an interest in Real Estate investing, and have done a few deals. My husband discovered Bigger Pockets and we've become obsessed, we're working our way through all the podcasts, reading and absorbing all we can. Looking to meet more people in the area. We're looking to do both flipping and buy and hold. Excited to be here!