All Forum Posts by: Matthew Anderson

 Thanks!  That's very helpful. Is this a deal you would feel comfortable going for?

Here are the numbers I have running through the calculations.  I would appreciate any analysis help or any tips on how I might have erred.  I tried to be conservative.

Purchase Price: $45,000.00

Purchase Closing Costs: $3,000.00

Estimated Repair Costs: $5,000.00

Total Cost of Project: $53,000.00

After Repair Value $50,000.00

Down Payment: $9,000.00 

Loan Amount: $36,000.00 

Amortized Over: 30 years

 Loan Interest Rate: 5.00%

 Monthly P&I:$193.26

Rent $700.00 

Total Income $700.00

 Vacancy $70.00

CapEx $70.00

Property Taxes $51.08

 Repairs  $70.00

P&I 193.26

Total expenses $454.34

Thanks everyone!  There are lots of great suggestions and comments here.

I was looking at a property yesterday and the first thing I noticed is no freaking closets - anywhere.  I can get the property dirt cheap and rent it cheap as well.  So far the numbers look like a good cashflow situation.  But I was curious: what kind of impact could this have on listing this on the future, or could it have any other implications?

Thanks for the comments! I know next to nothing about MH's, but I'm glad I had the same thoughts. My initial thoughts were: how the hell could the maintenance on these old MH's be less than 2% of the gross rent when SFH's are normally (conservatively) 10% of gross rent, and how the hell can the vacancy rate only be $825.

I found this on Craigslist and was interested to see what more experienced real estate investors (particularly with mobile homes) had to say about this add.  I know this is limited information, but I wanted to see if others got a similar impression of this ad as I did.

Here it is:

Mobile home portfolio 46% CAP RATE. CRAZY CASHFLOW!!!

If you're into mobile homes, you already know the kind of cash flow you can achieve! So buy these 4 mobile homes that are already rented!

Price: $38,000 OBO!
No. Mobile Homes: 4 
Property Sub-type: Mobile Home/RV Community
Property Use Type: Investment
Cap Rate: 46%
Total SQ: 4,000 SF +

Description

Portfolio of four mobile homes with a cap rate of 46%
All homes recently refurbished and rent-ready.

Gross Rent: 30,000
Vacancy Allowance: $825
Total Revenue: $29,175

Lot Rent: $11,124
Maintenance: $500
Total Expenses: 11,624

Annual Net Operating Income (NOI): $17,551

Email if interested in more information or making an offer.

I am a little confused as to why you can't just be put in the will.  Any reason this wouldn't work?

Persistence and patience.  No deal is much better than a bad deal.

You need to be careful not to take any shortcuts.  Court rulings on this kind of thing can be all over the place depending on exactly how the deal is done.  Although Wayne could be correct in his advice, he may not be, depending on your jurisdiction and the way things play out.  You do not want to be caught in a bad situation where relatives are trying to take the property from you.  You need to talk to a local attorney to make sure this deal is done correctly and she will let you know the best way to handle this.

Thanks guys!  I appreciate the comments.  Bill, I was thinking I would take the courses and test to get a real estate license in TN this summer.  Thanks for the add Ryan.  I'm sure I could learn a lot from you about the local market.