All Forum Posts by: Kyle Stueve

@Justin Hoggatt

Thanks so much for the time and detailed response.

The reason they are vacating the property is because the park changed ownership in the last few years to someone who let the park go. No real screening requirements and no park upkeep. Consequently people stopped paying and the park turned into a very rundown type place. The previous owner repossessed the property back from the owners (was seller financed before and they defaulted) and started the eviction process a few months ago with everyone there. Park was basically mismanaged by a slum lord type owner.

Due to the state of the property being distressed the property is at a discount based on my pro forma analysis. I do not mind doing the work and making the park nice again. I see the large potential with the property.

I have called around to local property management and near by parks of similar size and asked about demand. They are all full and there is no supply of long term rental housing in the area.

After hearing what you both have said I will definitely approach the seller after inspections about a 7-10 year term. Having more cushion will be key.

As far as the property, it is very close to the beach in Washington State. Small town with a cute main street and vibe. Park amenities are basic. Laundry room, restrooms and showers are basically it. The attraction is the destination town, not the park per se.

Hey all!

I am contingent on a great mixed use RV park with a duplex, two cottages and 18 RV spaces. Everything is currently vacant for rehab. Seller financed deal with a 5 year term with balloon at the end.

Here is my big picture question for the strategy of the park. The exit strategy is to stabilize the park and ultimately refinance after 5 years and increase value as much as possible.

Here are two strategies I am thinking:

Hybrid: Rent out all structures to long term tenants, rent 7 RV spaces to long term tenants. The 10 other spaces I would like to rent out to 'transient' RV'ers. This model has the most income producing potential. Equaling higher NOI which would mean a higher overall property value. Property is located in an area where short term Rv'ers want to be.

Standard: Rent out all structures and RV spaces to long term tenants. Less total possible income but more consistent.

Plan is to have one space dedicated to a park manager to manage the property and potentially RV'ers in the short term spaces. I know the Hybrid model will be a little more work, which is fine. I just want to know if anyone has done this or seen success with this hybrid model before or if I should just go all long term?

Again, I want to have the highest NOI possible for value add and to increase the value of the property for the refinance.

Thanks!

Hey BP community!

I ran across an interesting deal and wondering how to proceed?

About the property: Mixed use property with a SFH, 5 RV spaces, 3 storage units and a larger separate garage. Everything is currently rented. Cap on the property is 16%

There seems to be interest on the property but it is not able to be financed so I think that seems to be drawing people away. I think that some creative solutions could make it work.

Property is 385k, total rents 5400/month. Expense ratio is about 40%.

Question 1:
I don't have a lot of cash so I am thinking of structuring as follows? Hard money at 50% LTV @ 10% 2 year balloon(Talked to a HML that is interested), owner carry 150k at 7% 2 year with balloon(Agent says he is open to carry, owns property outright), and me coming in with the rest of the cash.

Question 2:

At the end of two years how do I know a commercial lender will want to lend on the property? I didn't try initially because I don't have the down payment that commercial typically want. I'd hate to get to the two year mark and have balloon payments to deal with and not able to refinance?

Just trying to think of some smart solutions to make the deal happen. 

Any insight is very helpful. Thanks so much!