All Forum Posts by: Jose Lira

Hi everyone,

I wanna check with you guys what you think about this. The MHP has 6 units (4 MH's and a single home divided in 2 units) inside 2 parcels that sum 27 acres. The property can be subdivided into 88 lots to either add more MH's or rent out/sell the lots. All units are under septic and private well. The MHP permit is currently just for 5 acres but the zoning allows the use of the rest of the parcel to develop it.

Current rent collected for all 6 units  = $5,485

Current land-lord expenses = $1,265

Variables (vacancy, capex, mgmt) = $2,030

County assessment = $668,600 

Asking price = $700,000

The property is well located but uninsured. Tenants are required to buy renters insurance.  

What do you guys think at first glance? 

Hello everyone,

This is a complex deal but I really want to make it happen (by making everything match) and I focus that all of you can help me find the golden mean here and potentially to find a partner.

Short story about this property: The owners moved out of the property several years ago and then passed it to a living trust. Since then, no body has taken care of the property (for several years now) but it is still collecting rents under the executor's management. It looks like at some point they passed away and the beneficiaries of the trust never dealt with the property and clearly have no intention of paying any attention to it.

Sale details: the executor's have very little info about the property. It has been for almost a year on the market with several discounts. For sale "as is". It has 5 manufactured homes and 1 main residence with 2 units. Every house has it's own septic and all share well water. Also, there are 4 buildings that need to be tear down. These last 4 buildings are 1 manufactured home that looks like it was destroyed and 3 old stable-style buildings. The 27 acres are coded for permission to build 4 buildings per acre, although almost half of it is forestry. The cleared land looks abandoned and needs cleaning and landscaping. No bank will finance because of the conditions of the overall property. Close inspection of the property upon offer approval.

Rental details: all 7 units are currently occupied. Tenants are month to month and want to stay after sale. By contract they must be carrying renters insurance.

Area: has been growing for several years and in words of RE agents, developers and reports from the City "it looks like it will keep growing for several years". Around the area new and nice developments keep forming and houses sold or rented out within an average time frame of 2 months. The downtown of the city is 5 mins away from the property and has everything -hospitals, schools, gyms, entertainment, etc. It is 20 mins away of big shopping areas, including outlets. The main RE customers are military families since there's a base about 20 mins away.

Extra info/ideas: I already have all the county info available. And I think that this property would do very good for a mobile home park.

About this report: this is a preliminary report but most of the rental info are current and verified estimates. The purchase info is what I am trying to figure out since the purchase price is negotiable and I am looking for a partner to finance the deal.

What's you opinion guys?

How can I improve this analysis for starting a proposal?

How can I find a financing partner for this kind of deal?

How do I do better for sealing this deal?

Thank you.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Account Closed This input is awesome and clarifies a lot to me. It is the same thought I've always had. Doesn't make sense!! neither from a "new investor" perspective to pay for professional services that are not already in use since there's no deal "on hand" yet and every deal is different.

Now I am sure that what I am doing is identifying professionals that I will go when having a deal and with whom I may consider create a professional relationship. And the idea of the yearly retainer is great.

Thank you for help that sure is good.

Best wishes to you too.

Jose    

Hello @Account Closed! and thanks for your post. Could you please elaborate on the difference?  

Ok! understood @Bruce Lynn. Thank you very much for all your help. Now I'm very clear on this topic. 

Best wishes to you and see you around.

Thank you @Dmitriy Fomichenko. Have you worked with the Jacobsen Law Office? and do you think that it is convenient to have a corporate lawyer and a RE attorney?   

WOW guys! This brings new pieces to the puzzle.

@Adam M. Thanks for your reply! It looks like any source of income generates tax liabilities, although some can be deducted or shield... is it the same? what kind of taxes can be shield? does this also varies from state to state? 

@Fulton Sanchez Also thanks!  this thing of the SSN and ITIN is becoming clearer to me and taxation dates were also part of my concern. 

@Bruce Lynn yes, I was considering starting to assign paid cash.   

Hello BPocketters!!

I am creating my REI team and I need a Real Estate CPA and attorney. Does anybody have a referral that works in the Thurston County (Tumwater, Raineir, Yelm, Bucoda, Olympia, Lacey, Rochester, etc)? I live in Tenino but anywhere around King, Pierce, Lewis, Pacific, Grays Harbor, or Mason Counties will do.

Thank you for the answer @Bruce Lynn. Just what I needed! 

I'm planning on starting with HML, private money and partnerships for financing my first deals. Do you know if this work the same way when assigning contracts?

Hello @Dave Visaya, thank you for your words! Seeya around!