All Forum Posts by: Michael Meeks

Best to put your feet on the ground, especially on an acquisition. Units can need as little as touch up paint and carpet clean or as major as a total gut due to mold and water damage, and many things in between. Exterior the same way, rotten fascia, rusted stairs, failing roofs, etc. Best to have a trained eye. If its aging systems in working order, a replacement reserve rather than Capex may cover those issues.

$32/sf to build a stick built house is unrealistic. There is greater opportunity in buying and fixing distressed homes or mobile homes. Much tighter margins on new construction, and a higher investment.

your contract should have a start date, pay schedule, termination clauses and liquidated damages for delays.

I just went through a termination. The contractor was asking for draws on work that was not complete, they fell four months behind schedule. I did not pay for incomplete work, I put them on notice that I was supplementing the work force, I had to put material on the project and deducted from the contract. After a few weeks they left the project. I gave them 72 hours to remobilize, or they were effectively terminated. I completed the project and had another GC pull a new permit for the final inspection.

If I wanted to pursue it, they are liable for the project overages and liquidated damages.

Keep projects well documented.

I agree depends on your market. We manage over 10,000 apartments. We mostly use wood-look vinyl and carpet, and get the same rent. We use some vinyl plank, it's pricier, but more durable. Easy to replace a single plank if needed. 

We have added granite, in some units, but mostly we use laminate. There are also refinishing options that give you a great look at a fraction of the cost.

Will the upgrade pay for itself in 24 months or less? If not I recommend keeping it basic.

I'm not that far from you, so cost should be comparable. I have flipped (3) using lease purchases. I typically sink $5000 to $7500 into similar renovations. I do include a/c when necessary, but liability is theirs, if there are any issues since they are ultimately purchasing. I am purchasing for $5000 to $9000, and selling the homes from $26,000 to $38,000, (plus finance charges) and that is still cheaper than they will typically get from a dealer on a used home. My father works for a dealer, and they struggle getting customers financed. Buyers are plentiful. My homes are all 3/2 in parks with great school districts.

I also collect with the payment and personally pay the lot rent. It continues to build rapport with the owners. 

varies by park. I have 2 mobile homes in different parks. I'm negotiating the purchase of the park with one owner who is ready to retire. In the 2nd park the owner immeditely took me to another tenant who was in financial trouble and needs to sell. 

This is a very profitable business because bank lending is virtually non existent and decent affordable housing is hard to come by.

Instead of taking title, do a prepaid master lease for whatever term (99 years). Title doesn't change, house stays, you sublet, as far as city is concerned sell fell through due to the permit problem.

Do you have pictures ?

If over 100 units please send me the info.

Thanks,