All Forum Posts by: Joshua Diaz

You probably already know this but it’s not listed here so I’ll mention it.

On any trailers that are occupied, get an estoppel letter from the resident to verify what they are paying and what their lease terms are

@Charlotte Dunford

They are hoping to snag an uneducated buyer, to put it nicely.

@Jacob Davis that’s awesome.  You are going to get such a valuable education here, it seems like. 

@Jacob Davis  congratulations!  Well since it’s seller financing I would guess there’s no loan origination fees like how a mortgage would have.  You would still have to pay whatever attorney or title company you would use .

But this is still all negotiable in the contract you have with this seller.

It would probably be good for you to handle closing costs since the terms are super favorable (no down payment and deferred payments)

As far as adding units, I’d analyze the cost vs. what income it can generate. Strive for a 10 cap.

For example: if the new unit would give you $200 a month, then...

$200 x 12= $2400 a year

$2400/.10= $24,000

It should cost no more than $24,000 to get the unit in and have it set up and ready to go.  This will allow you to break even and get your money back in value .

Hope this helps

The quick rule of thumb I’ve heard about is to take the average rent of a 2 bedroom apartment in the area and cut it in half. That would be the lot rent in that area.  

I am also no expert so hopefully others who are more knowledgeable can chime in.

@Jacob Davis  Tenacity is your friend.  If not this deal then another one.

I’ve listened to Frank Rolfe and others on lagoons.  Lagoons are something you run away from according to them

@Jacob Davis  oh I see.  In that case, if you really want to go forward with this, you need to find out how difficult or how much it would cost to get those permits. That would involve you talking it over with the town .

Personally , that would be too much for me but if you can make it work, you would be able to solve a problem no one else is willing to take.  This could be in your favor but please understand exactly what you are in for

@Jacob Davis to be sure, I must ask. Did you mean the park was grandfathered in and no parks are allowed today or did someone build that park without telling the city anything?

If it’s the latter, then the park is 100% illegal and I would not go forward with it no matter what the price is.

The town could literally come in as soon as the sale is done and force you to shut it down, costing you your entire investment.  They could also decide to force you to demolish it as your cost.

I also recall before that some homes need to be demolished.

Sorry, I would pass on this unless I could get, in writing, from the town that the park is legal  non-conforming(grandfathered) or legal. 

I’ve heard way too many bad things happening with an illegal park for it to ever be worth it.

 Exactly what I meant.  Thanks for the clarification