All Forum Posts by: Kristi Nunes

Thank you @Tom Gimer. We are looking into a deed of trust which sounds similar to what you are suggesting. The property is located in Idaho. I appreciate the helpful response :)

Thanks for the reply @John Clark. Let me clarify what we are looking to do because perhaps there is a better way to structure the deal.

The seller has a mortgage of approx $500k at a 2.7% interest rate. The purchase price of the home is $750k. Our 1031 property has roughly $225k in equity. We plan to rent the home for 1-2 years before we move into it as a primary. We want to keep the current financing in place because there is no way we can find an interest rate close to this nowadays. Talking with our CPA and 1031 professional, this is possible as long as the contract specifies that the "risk of loss" is passed to us. Is there another way to assume risk of loss and keep the financing in place without triggering the due on sale clause?

Hi All,

We are looking to purchase a home using a 1031 exchange and keep the seller's financing in place. We will have equitable title and the seller will retain legal title. Does anyone have a template of a contract we could use for something like this? Are there real estate lawyers who can help us structure this to ensure we are not putting ourselves at risk?

Thank you!

Kristi 

@Lynnette E. We are not expecting to be able to get $20k/month cash flow immediately. We understand it will be a process and build up over time. My question is more about trying to find some different strategies we aren’t currently trying that may help us hit this goal faster. For example, vacation rentals seem to be pretty hot right now and perhaps that may give us a better return on our investment for cash flow than acquiring another long term rental (albeit, a bit more risky). I’m just curious to hear what others would put their money in right now if they were in a similar situation as ours. Thanks! 

Thank you @Charlie MacPherson! This is a route we have considered, but haven't fully vetted yet. We'd prefer something a bit more passive that gives us the flexibility to travel or move around, but perhaps there are businesses for sale that meet those requirements.  I'll take a look!

I'd love some help determining the best strategies to help us reach our goals.  Here is our situation:

-  We are striving for a monthly cashflow goal of $20k/month

-  We are currently bringing in $4k/mo in cashflow from current rental properties

-  We have max $200k in the bank to help us reach this goal

-  We currently do not have a consistent W2 income stream (only 1099) so it has been difficult for us to obtain loans

What investment strategies would you use to help us reach our goal as quickly as possible if you were in our situation?  Go! 

@Jack Martin Thank you so much for sharing your expertise with me! I feel so lucky to have found this forum where I can bounce ideas off of people who have more experience than I do. I’m going to get started on the market research for the location and re-do my numbers assuming only lot rent to see where that puts us. I’ll keep you posted on how it goes ;) 

@Jen Bastian Thanks so much for the checklist! I’ll definitely be using this. The MH park is on city water but the agent mentioned there might be a couple of recently added MHs that have septic. This is something I need to look more into. 

@Jack Martin Thank you so much for the reply. This makes perfect sense and is right up my alley since I am a software product manager by trade and am constantly testing ideas before committing them to a roadmap. Market research and concept testing is so important and I’m excited to try out your suggestions! 

While I know the optimal deal involves converting all POHs to tenant owned, is there ever a case where keeping them park owned makes sense? For example, let’s say I do all the testing and it turns out there is high demand for MH rentals but not MH purchases. If we kept everything functioning the same except maybe we added the rent from the office/apartment and storage, we would be cash flowing $4k+\month which is exactly what we’re trying to do right now... increase our cash flow. Would you consider this a bad deal though? Thanks again for your input and advise! 

Hi fellow investors!  I am evaluating a mobile home park and would love to get your thoughts. Here are some quick stats:

- Appraisal done on park and vacant land alone (3.4 acres) valued at $40k but entire business with land valued at asking price of $480k. Brings in $11k/month in income and $4k/mo in cash flow after all expenses (this is after verifying/questioning owner's rent roll)

- 19 MHs, all POHs. MHs built 1966-1986, all recently renovated inside and separately metered so tenants pay all utilities.

- 1 three bedroom single family home, currently occupied by the maintenance man who is on a 1099 and gets $1200/month in addition to the housing.

- 1 office with an attached apartment. Currently used by owner but has potential for additional income.

- 1 large storage unit currently used by owner but has potential for additional income.

- Right next door there is another 11 acre lot for sale with potential to expand/grow the park

Questions I have for experienced mobile home park investors:

- I realize having tenant owned MHs are better than park owned, but in an area where the land value is so low I wonder if it makes more sense to keep them park owned?

- The current owners built this property up themselves 35 years ago. It is surrounded by single family homes and residential neighborhoods. Since initial build, the zoning has since changed to high density residential which does not allow manufactured home parks. I'm trying to get a hold of the city to see what this means for the future of the property, but here are my best/worst case scenarios:

A) Best case - We are able to continue operation as a mobile home park, sell as many MHs to tenants as possible, expand into the adjacent lot, bring in good cash flow and attract a decent buyer when we are looking to sell.

B) Worst case - The new zoning does not allow us to expand or build additional pads, the entire investment quickly loses value over time and we are unable to find any buyer willing to take it off our hands. In this case, I can think of some ways to get creative on how to keep ourselves afloat, but most of the creative options I can think of include developing the land with multi-units and/or subdividing the lots. Has anyone done something like this before and what kind of due diligence would you do to determine if it would be worth it?

Thanks so much for your help! Looking forward to hearing your thoughts/advice.

This feed has been hugely helpful! I am evaluating a mobile home park and would love to get your thoughts. Here are some quick stats:

- Appraisal done on park and vacant land alone (3.4 acres) valued at $40k but entire business with land valued at asking price of $480k. Brings in $11k/month in income and $4k/mo in cash flow after all expenses (this is after verifying/questioning owner's rent roll)

- 19 MHs, all POHs. MHs built 1966-1986, all recently renovated inside and separately metered so tenants pay all utilities.

- 1 three bedroom single family home, currently occupied by the maintenance man who is on a 1099 and gets $1200/month in addition to the housing.

- 1 office with an attached apartment. Currently used by owner but has potential for additional income.

- 1 large storage unit currently used by owner but has potential for additional income.

- Right next door there is another 11 acre lot for sale with potential to expand/grow the park

Questions I have for experienced mobile home park investors:

- I realize having tenant owned MHs are better than park owned, but in an area where the land value is so low I wonder if it makes more sense to keep them park owned?

- The current owners built this property up themselves 35 years ago. It is surrounded by single family homes and residential neighborhoods. Since initial build, the zoning has since changed to high density residential which does not allow manufactured home parks. I'm trying to get a hold of the city to see what this means for the future of the property, but here are my best/worst case scenarios: 

A) Best case - We are able to continue operation as a mobile home park, sell as many MHs to tenants as possible, expand into the adjacent lot, bring in good cash flow and attract a decent buyer when we are looking to sell.

B) Worst case - The new zoning does not allow us to expand or build additional pads, the entire investment quickly loses value over time and we are unable to find any buyer willing to take it off our hands.  In this case, I can think of some ways to get creative on how to keep ourselves afloat, but most of the creative options I can think of include developing the land with multi-units and/or subdividing the lots. Has anyone done something like this before and what kind of due diligence would you do to determine if it would be worth it?

Thanks so much for your help! Looking forward to hearing your thoughts/advice.