All Forum Posts by: Justin Robert

I will second the advice of @Matthew John. Always take a look during and after a large rain if possible. 

@Toshiki Hoshino This might be pretty obvious but ensure your SD IRA has cash reserves for the deal. Hypothetically if it all went into this park and your partnership had a cash call for say a big maintenance item like a septic tank failed, you can't just fund it from your personal checking account. Again, that might be obvious and implied from the above responses, but that would be my initial check to make sure your SD IRA can handle that.

I purchased a 1.5 acre property last year with my SD IRA. I rent half as a travel trailer spot and the second spot has a shop someones uses as a small car lot. The return is far greater than what I can expect in the stock market and its 1000% more enjoyable to drive by and see my investment.

Good Luck! 

@Brian Alfaro Congrats, that cash flow rocks man. 

@Jason Hill I didn't realize you were still active duty, that makes it tougher to balance I am sure. Does the $400K you mentioned included the purchase price, or is he saying it is $400K for the remodel alone? Who quoted you that? Couldn't you GC it out and save a pretty good amount (in theory)? 

@Isaac S. I believe the unit needs new Electrical + Plumbing. Many of the units are down to the studs and none of those are in place currently. 

@Jason Hill Did you ever get anywhere else with this place? 

@Ashley Gish I think this question is too difficult to answer without knowing your income level and job stability. Not asking you to share specifics, just saying we don't know enough. 6-7% is extremely high. I would agree with one of the previous posters who said to spend all time / energy in to bringing that rate down ASAP. That interest rate reduction is a massive investment in yourself that will (most likely) cost nothing but a few hours of your time and energy. 

@Jason Hill I have emailed the person listing that property a few times with no success. Can you pass along their contact info? I am assuming this is the "yellow" building listed in Killeen on CL. 

@Ellen Daniel Aside from the legal / IRA "things" to consider keep in mind that's a real long term play.

I have a piece of property bringing in $1,100 monthly and is virtually all profit monthly (Trailer Lot and Metal Shop). I regret putting in my SD IRA and not just putting under my LLC. Even though that money / land / income is mine, I have less flexibility with that I can do with it. I know SD IRA and Solo 401K are not the exact same, but similar.

@Jack Martin Thanks for the feedback. Yes, I think $225 for 4 lots and $175 for the fifth so probably shows $215 for the average.  It does seem like a good enough deal at surface level. 

What am I not asking / considering? This is one of those old  parks with lots of handwriting and little verification. I have the ability to pay cash, would most likely present both a cash and seller finance offer if due diligence proves out the opportunity. 

Purchase Price $260,000

10 acres (+/-) 

Not in city limits 

Midwest US 

22 total Spaces

11 Septic Tanks ( 1 per two spaces ) 

1 Water Meter (city supply) 

Individually metered electric 

Income - $5,200 Monthly 

8 POH @ $ 4,125 Total 

1 POH @ $ 400 (includes electric) Maintenance man works out his rent monthly on an hourly basis so not included in above $5,200 

5 Lot Rent @ $1,075 Total 

7 Unoccupied Lots

• 3 are move in ready
• 4 need electric pole / meter

Expenses $2,482 Monthly 

Water $400 per month average (park pays, does not pass on any costs but "watches the usage") 

Taxes - $187 per month 

Insurance - unknown ($200 per month in above calculation as estimate) 

Trash $225 per month average 

Electricity (night security lighting) $150 per month average 

Maintenance / mowing / cleanup, etc... $800 per month average 

Property Management - 10% per month ($520)

12.5% CAP Rate assuming I bring in PM and don't touch anything else.

My first thought for value add would be to get the empty spaces rented and  sell the POH on terms to the tenants

Thoughts? Questions?