All Forum Posts by: Mike Gennaro

Hey Bob,

I'm also getting started in MH investing, and I think the 55+ strategy is brilliant.

I live in a small town in Louisiana, and some really smart individual started a 55+ MH community across from the hospital. There is a waiting list to get in, and the park is always kept clean and managed well.

Word of mouth and location, that is street presence, help fill this location.

Best,

Mike

Hey Mike,

You're numbers look good. There are always variables, but you did a good job setting yourself up for success. Also, you are buying at a strategic time, when many responsible tenants move to ensure they are settled in for their or their children's upcoming school year.

How desirable is this location? If you are saying you are renting the main house and studio separately, your rent expectations may be set a little high, but maybe you'll prove me wrong. Figuring that the main house would be worth 100K and the studio worth 20K, consider setting a minimum rent projection of $1000-$1100 for the main house and $200-400 for the smaller studio. If you are getting a lot of inquiries about the house and no signed lease agreements, then you'll know that you're probably asking too much. Whatever the asking rent is, make sure you don't rush the process but do a diligent job screening your first tenant. BP has many resources to help you with this.

Have you compared your rent projections to actual rents that other houses are going for in this area?

Best and remember to create your own luck!

Mike Gennaro

@Jay Hinrichs

Your tip about only your friend only buying within city limits to save on treatment costs is much appreciated.

In our area, we are trying to service oil and gas workers and plant personnel. I've noted a few "pop-up" RV parks that are possibly operating under the regulatory radar. A bar-b-q restaurant rents out it's parking lot, for instance. And an empty plot of cleared land has about 20 RV's parked on a daily basis. A gravel dealer has a hand scribbled sign allowing RV parking as well.

In that light, the goal is to affordably develop a 30 pad RV park within city limits while still best serving clients and meeting regulatory requirements.

Are there any more do's and don't from those that have failed at this and eventually succeeded?

Thank you all for the overwhelming response in valuable information. To answer the most basic question, I obtaining quotes on 30 pads/sites and one sewage treatment plant. The location will be just outside of city limits. I'll let you know more about the process as we move forward.

Best and many thanks,

Mike

Hey there BP community,

I'm obtaining quotes to develop an RV park, and I want to know how much should we expect to pay for an on site sewage treatment plant.

Has anyone gone through this before with mobile home or rv parks in rural areas?

We have industrial plant workers that need seasonal housing in our area. Any and all advice would be much appreciated from those that have succeeded in this niche.

Best,

Mike Gennaro

Hey @Dennis Nemitz,

I applaud you for your diligence in protecting your investment. @Rick Bagenstoss brings up such a good point in that the word "inspection" denotes a very planned visit, one that your tenants can prepare for.

It's a good thing to show the tenants that they are accountable to someone, but I think you'll earn your stripes more longer term tenants if you show the them that you are there to provide value to them, to make sure that their living facility is up to par; "quality checks" rather than "inspections," even if you show up at random intervals.

I think everyone would agree that you're on sturdy legal ground inspecting every three months, as most landlords include the right to inspect at will in their lease. I'd follow the general rule of thumb that inspections should occur at times when tenants do not have a reasonable expectation of privacy, as in typical business hours.

Setting an exact time frame and asking them to repair before the scheduled checks may prove to be a recipe for cheap cover-up repairs and well rehearsed answers to walk-through inspection questions. If you really want to know what how the tenants treat your property, inspect it on a Saturday morning at 9 a.m., when they're letting it all hang out, perhaps sleeping in after an all night romp. You might see who is really inhabiting your property, extended stay guests, pets, vermin, dust bunnies, and all!

Best of luck-- It sounds like you really do care about your property, and it'll pay off over the long haul,

Mike Gennaro

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Hey Sharad,

I was really encouraged by your post. Sometimes the home runs aren't in the most desirable locations, right? Our best property was purchased for 23K, and we put in another 25K to bring it up to code and make it really quite a nice place. Although we had some theft issues during construction (new a/c, materials), when the house was vacant, it was still worth it. I wanted to mention this to affirm that that dream can come true. You're right on the money!

Best,

Mike Gennaro

Hey Matt,

I think everyone shared great advice with you here, but I don't think you should automatically assume that the nightmares mean you're not cut out for it at all.

What is your honest self assessment of your weakest area in land lording? Whenever I've had the nightmare property management experiences, it was due to some overlooked area in my screening process and pre-rental property preparation.

What types of properties are you managing, low, mid, high income? Although I don't know what exactly you're dealing with, I'm going to recommend a book to you that can help anybody out. Check out The Section 8 Bible on Amazon. It will show you how to "eliminate" most of the problematic items in any rent house, and will help you sleep better at night.

I own Section 8, and I find it to be the easiest property class to manage not because I was born tough or savvy. Although I only stand 5'6" and still look like a teenager at 31, I've bumped my nose, failed fast, and gone through the real estate school of hard knocks like any successful investor.

Don't give up when you've come this far though. There is a way, but as Robert Kiyosaki says, you're not going to solve the problem with the same mind that created it in the first place. You did well to reach out to your peers here.

Mike Gennaro