All Forum Posts by: Mike B.

@Greg Dickerson

Makes sense . Any pointers on where to find decent deals for those specific types ? Also , people have told me to try out of state investing , what demographics are ripe for these investments ? Besides the classic ( high growth , good employment , sunny weather environment ) factors everyone says to look for

Thank you Yonah and Greg for the insights 

Yonah , Thats  helpful . Im looking to target certain types of real estate can bonus depreciate  at least 50% the first year minus the Land value . I have business income that i am looking to offset if possible . Do you mind if i ask about an  apartment complex ? the average Cost seg on a ( 20-50 unit ) complex ?  Also , what about self storage ? 

Ive been looking for the Rv parks and self storage along with apartment complexes , its fairly tough . 

Greg ; I appreciate your input as well . Im just looking for  assets or types of real estate that do decent in recessions, which i'm sure everyone is looking for that as well .

Hey everyone !

I’m looking to invest in a different asset class , but just need help getting started

I have some retail Commerical properties and a couple mobile home parks and would like to diversify into other strong recession proof asset class .

The area I'm in is scarce in apartment complexes and self storage so I'm wondering what are some good asset classes that produce decent ROI , IRR , have good cost seg returns , and can manage to invest out of city or state ?

My goal is to buy and hold , and produce decent cash flow .

Hey Everyone , just a couple questions

What are the top asset classes to invest in , now and for the next few years ?

What properties produce the highest cost seg returns ?

I know this may be a fully loaded question and I apologize . What type of asset classes are lenders ok with lower down payments and higher amortization schedules in this market

We just purchased a 23 unit mobile home park ( all park owned ) for 1.25 and a traditional bank is the only one who would offer a term sheet .

jack Martin 

Great points , I should've clarified earlier so thats my bad . This will be my 2nd mobile home park , i have 12 units 10 mins away , this park is 25 mins away . We are in contract currently at 1,300,000 , waiting for an appraisal . But I do appreciate all the good points you've made . We'll see how it works i guess . I didn't know if in todays market people are holding out for better returns . 

Jack Martin 

I Agree with you on the evaluations . We had the same estimates when we broke it out , $850,000 for the land and $450,000 for the park which we think is $220,000 over priced . We have considered after a year or 2 after collecting income  , to sell the homes for 10-14k , its hard to sell mobile homes  , but in a fantasy world , lets say we were to sell them for 12k which would get us back $276,000 , we of course hope to have made money in this time frame to justify the sell . After  2 years of income , and with the selling of the homes , we would estimate we ( theoretically ) purchased the property for roughly $ 900-950 K , which is still over priced for the dirt , but there is no other options honestly for something quick to purchase before the end of 2020.  I guess our question is , would another seasoned Investor purchase this property or would he look for another deal ?

@Mike Bianchi

It won’t let me put the chart up so I’ll try to word it out

Rough estimates

Purchase 1,300,000

Down payment 30%

Mortgage $5,838

Income

Lot rent - 23 units X $400 = 9,200

2bed 2 bath 18 units X $375 = $6,750

3bed 2 bath 5 units X $450 = $2,250

Vacancy 12% = $2,184

Expenses

Insurance $670

Utilities $ 1,121

Administration $ 170

Managment 10% = $1,602

Repairs 13% = $2,100 , $1,000 per unit per year

Reserves $500

Taxes $565

Other $860

Cash flow - roughly $2,700

Trash is part of the taxes

County water

Private Septic

Hey Everyone , we are currently in contract on a property on the coast in NC . 23 unit mobile home park . All park owned homes , acquisition price of 1,300,000 . I am attaching performa based on axtual expenses and income . The income is projected 21k but we wanted to be conservative and bring it down to 18k with 12% vacancy. It’s a good small market area near the beach ( 15 mins away ) steady market , and people are moving towards this area in NC . We just wanted your opinion on this deal , please be as critical as possible ! Homes are fairly renovated , most of them are 96-2000’s age , 18 2 bed 2 bath , 3 bed 2 bath . The deal cash flows roughly $2700 a month on a 20 year note , not the best by any mean but it will save us on taxes quite a bit !

@Michael J Scanlon

You have a valid point . My concern isn’t so much net worth , I know to a lot of people that’s their end all be all . My priority is to mitigate risk and yield good cash flow .your right , if I refi and pull that 200+ and use that and the 475k on 2 deals or 3or however many , then yes , my net worth goes up , depreciation along with principal pay down are also important . One problem I have is if I were to inject the money into a couple deals that only produce 5-6 coc , there is very little room for error and then your breaking even if something does happen , vs netting 6200 with less risk . I understand your point though , it really does boil down to the numbers and what each person is comfortable with . If There were deals that would yield 10% + , it wouldn’t even be a question .

I’m all ears Todd S . I believe it’s doable , and yes , I would appreciate any deals you send my way . The resources are ready , just need the deals now . Thanks Todd