All Forum Posts by: Mel Adams

Hi Summer - here's my experience as well. I mostly rent for 3-6 months at a time to families relocating from out of state, so some of my answers may not be as applicable to travel nurses.

Tenant screening: I do a background/credit check, but I don't ask for references. Since my tenants are usually homeowners it doesn't make sense for me, but even for the couple travel nurses I've had, the background/credit check was sufficient and seeing how they communicate with me prior to booking. Some MTR hosts will also skip a background check for travel nurses in lieu of receiving their employment contract. Travel nurses go through extensive background checks to be employed, so having a copy of their contract is sufficient for some. Make sure you feel comfortable, but keep in mind if you ask for too much (in comparison to other MTR hosts), you might lose out on guests. 

Income verification: I don't ask for it. I've found that by requiring a deposit, not being a low priced rental, getting back a good credit report, and the fact that they're relocating to buy a house it's not something I need to verify. For travel nurses, you can ask for their contract, but even then, I've told my travel nurse guests they can black out their pay. You can call the contact on their contract to verify employment. Usually, a red flag for me is if anyone asks for a discount. 

Leases: Each tenant should complete their own background check, application, and lease. I don't charge an application fee, but they pay for the background check. Since MTR stays are a month plus, guests will have tenant rights and need a normal rental lease. I got mine off Law Depot. I wouldn't worry about the length of it. 

Pets: These aren't short-term guests, so for me, they're allowed to have their pets as they would in their home. They can be left alone, or they need to set up boarding. I wouldn't want my guests to leave their dog outside all day. I confirm prior to booking their pet is house trained and is a minimal barker. Usually if they're upfront about their pets they're fine. ESAs aren't a red flag for me, esp if you allow pets. 

Rent: If they move in in the middle of the month, I pro-rate it and it's due prior to them moving in and me giving them a door code. Beyond that rent is due on the 1st. 

Trash: Yes, include trash expectations in your lease. 

Hope this helps! 

Hi Kathryn - I personally would have no problem sharing insights if another host or soon-to-be host reached out to me. I think your message is fine. If you haven't already, I would look on Furnished Finder (FF) for comps, and you can reach out to hosts there. You can get a pretty good idea of current occupancy just by looking through FF listings. 

Reaching out to hosts on Airbnb/VRBO can sometimes be received in different ways because response times/rates come into play. That isn't a factor on FF though. Happy to answer any other questions!

I do not use a pricing software. I go off comps mainly on Furnished Finder as that's where I get the majority of my bookings from. On FF, make sure the comps you're using are actually booked properties, and you're not just pulling from every listing in an area as some of those may be sitting vacant because of bad pricing. 

I would absolutely not sell a home in North Park with a 2.7% rate, ESP since you're cash flow positive at this stage. If you were bleeding money on it every month and couldn't afford to keep it, then okay, but I would keep that house for years and years and years. Rents will continue to go up. The value will continue to go up. People have left the state, sure, but North Park is not really an area where your property value is going to feel the effects of that. That is a very desirable neighborhood.

Take it with a grain of salt when people tell you San Diego's population is declining and there's a correction coming - just about every market in the country is inflated. This one included. I don't think San Diego is going to see a significant correction, though, if at all. Very desirable place to live, and there's still demand at the current prices that've shot through the roof since Covid, especially in North Park. There'll be ebbs and flows, but unless the world is ending, all signs point to continued appreciation in San Diego.

If the POHs are in subpar condition but occupied, would you fix them up a little and sell at a higher value, or leave as is and sell for what they’re worth in the current condition? 

Hey Rene - I co-host a monthly meetup in San Diego (not MHP specific, just general REI) if you happen to find yourself down this way. Would love to chat. The link to join our Meetup is in my profile!

 Understandable - a park like this is riskier! 

Hi all - I'm looking for an equity partner to buy my first small/medium mobile home park. I feel fairly comfortable analyzing deals, but this is still a new asset class for me, so I'd strongly prefer someone who's experienced. Maybe a MHP investor who's looking for someone else to do the leg work for them - I'd be happy to do that to gain hands-on experience.

I do have a lead on a park, and I'm constantly looking for more. This lead is riskier because the park is essentially vacant (seller has had no interest in doing infill again or managing it...it used to be full), so maybe it's insane, but I strongly believe there's potential. I've already done leg work of calling local MHPs to get market rents, called local banks for financing (got good traction), and briefly spoken with the city. Below are quick details:

-PP $425k

-30 lots + 1 SFH home + additional, cleared land. Only 3 lots currently occupied with TOH

-City utilities, park grounds are in good condition

-Market lot rent $325

-Growing MSA

I have more info, but if you're interested in this lead, or potentially partnering on another, let's talk!

Hi everyone - I've been coming across individual, vacant lots with utilities/pad already set up, or city utilities available. Has anyone invested this way? Purchasing individual lots and essentially renting to a TOH? Granted you'd have a greater return and it's probably more efficient to invest in a park, but some of these I've found have low barriers to entry and are within the same city. Thinking it could be worth it to get a few in the same area. 

I think it can offer someone more privacy and "their own space" versus renting a lot in a park. Curious what people's thoughts are. Thanks

I'm more of a MHP newb, so take this with a grain of salt and maybe someone more experienced can check me on this, but I think it's overpriced. 

If you're just doing a quick valuation, 13 pads x $310 lot rent x 12 x .7 / 10 cap = ~$338k pp 

Even if you use the the high end proforma lot rent, 13 x $450 x 12 x .7 / 10 cap = ~$491k pp

If your NOI is about $34k (using the current lot rents and allocating 30% to expenses) once you factor in your mo payments back to the seller I don't think you'll be left with much, if anything. Obviously getting to market rents would help and looks like you could make about 11% on your initial down payment, but I think the pp is too high.