All Forum Posts by: Abraham Anderson

I had a deal come across my desk. MHP has 57 spaces (of which 51 trailers are owned by the park), 100% occupancy, average rent is $500/month, city sewer/water, they pay all utilities, plus they pay the grass cutting bill. The only bills the owner has is taxes/insurance, as well as property management/maintenance.

My question is how to evaluate this deal; Do I base the value solely on the lots, or do I include the entire $500 which includes lot & trailer rent? For the 6 pads with tenant-owned trailers, it's $200/month lot rent.

For my property (21 units), it depends on how long the tenant has been in the property. We recently had one leave after 10+ years of occupancy and the place is absolutely trashed. Lots of garbage left behind, needs pest control treatment, needs new paint, replacing carpet with vinyl, holes in the wall, stove is missing the handle, etc. It's going to be a 10-14 day turnover for 2 guys working part time.

For tenants who have only been there 1-2 years, typically it takes 3-5 days.

This sounds like such a great opportunity. Be persistent!

Regarding your question, intuitively you'd think a bank would only care about NOI/cap rate/equity at purchase vs when you refinance, but I may be wrong, hopefully others who have been through the refinance process can share their wisdom.

Go as big as possible! That's one piece of advice I heard over & over, and I'm glad I took it. My first buy & hold deal was 20 units. I had no prior rental experience. Yes, it was slightly intimidating, but I did my due diligence, ran the numbers, asked people smarter than myself, & finally took the plunge.

There was a 60 unit deal that I almost got, but I lost in a bidding war. 20 units seems small by comparison, but it was big enough :).

@Thomas S. I suspected this, oh well. Very sad that children can't have a swingset because of government bureaucracy.

Thanks for the reply, @Michael Guzik! I am not aware of any apartment communities in the area that have playgrounds (dog parks are much more common). I'm not sure if that's due to liability or lack of demand (as you pointed out, pools have liability and there are lots of them in my market as well).

Every time I visit the property, there are 3 or 4 young kids (under 10) playing outside on the grass, and I would really love to have a playground for them. Hopefully others on the forums can chime in on this topic.

I'd love to add a park/playground to my 20 (now 21 unit) property, (as there are several families there with young children), but I am worried about liability issues. I am thinking something like swings, a slide, etc. Is there a way to do this while legally protecting myself from liability (i.e. having them sign a waiver)?

Here's a photo of the area

(please ignore the bricks/construction items, they were there temporarily during renovations and are being removed).

Great job. Posts like this are inspirational to me. What is the best advice you have for finding deals?

I appreciate the inputs, everyone. It seems like I will have to check with the original lender if they would authorize a 2nd lien on the property. If I proceed with this deal, I will update the thread with the info I find out.

I'm looking at a commercial multifamily property that's owned by another investor. Property was purchased at ~$1M and is valued at ~$1.5M. This investor has debt on the property around $650K. The property is in an LLC.

I have the option to invest in the property at cost up to 50% (i.e. I could buy half the property for what the other investor paid, 500K = 50% even though it's worth more). 

Is there a way to get a commercial loan (i.e. 20% down) to buy into the LLC? I.e. come up with $100K (20%) and the bank supplies the other 80%.