All Forum Posts by: Radhika M.

@Mike Sedlacek

 Interesting approach but I have a question for you. You are moving the tenant into another landlord's property so do they know that they are problem tenants and this is your way of evicting them?

Just curious to understand why some one take your problem tenant.

@Rina Amir

Based on the formula you posted above and that your goal is 10% cap my guess is that they expect the expenses to be about 30% of rent collected so they expect the NOI (net operating income to be 70% of the rent collected) and so they multiple by 0.7

Hopefully somebody who knows more about MHP investing will post. Good luck to you.

@Rina Amir

 Not sure I understand your question. If you are working with an agent they should be able to provide you with the sales that happened in the last few months in your target area that can help.

Also 10% cap may be good to shoot for but may be not possible in all markets. I am in San Jose but not familiar with Mobile home parks not sure what the caps are for those.

@Dean Suzuki

 We just recently signed a lease and found that many good tenants want this especially if you are looking in expensive area's.  We actually remodeled the unit right before the lease and did not add this and regret not doing it. In our case this is multiplex so there is shared laundry but tenants seem to prefer in unit.

We will be doing it now and for any units we renovate.

@Nat C.

 I have to agree with others that you come of as very judgmental.  Not everyone can live on a 20k budget or even if they can they may not want.  

@Mark Ferguson @Lew Payne

 Thank you both  for sharing openly the reason for why you do your business the way you do.

@Conway Churaman

 I can feel your struggle through your post. I understand you do not want to work in your current company and that is fine.  Like @Michael Delpiersuggested above go to another company.  

If you can take some time off for a week or two and then find another position. This can be even in Florida if that is where you plan to start investing.  If you have 11 years of experience you should be able to find something even at a pay cut.

Please know that none of us are suggesting you not make a change or stick with your job. what we are saying is be cautious and have a plan.

@Conway Churaman Like others have pointed it might be premature to stop working before you have more concrete plan than you want to do something in RE. I think your 30K in saving would vanish very quickly if you lived of it or made a mistake when investing. Also like others said you will not get loans with out a job.

If you hate this job find another job (may be in RE). Studying for an agent could be a good thing but do this while you work (even part time is fine). 

Good luck.

@Cal C.

 You are right CA markets do have up's and down's ( as most markets do) so if you can time it during the down turn your returns will be faster but if you are a true long term holder by that I mean in the range of 10 to 20 or more years I think the timing may be not be that much of an issue. Yes if your goal is to exit the property in 2 to 3 years or even 5 years You should look at timing and you could be caught in the wrong end.  So I agree that buying in CA does have risk and you should account for that (that is have cash reserves and be ready to hold the property until market turns)

@Mindy Jensen

 Great topic. It will be interesting to read others perspective on this.

Our goals are more long term and we do not need a lot of cash flow in the near future. Having said that  we do not want to have negative cash flow so we pay higher than average down payment. So our choices are based on that

1) Neighborhood and tenant class (We prefer A or B class ). We are okay sacrificing cash flow for this.

2) Long term ROI or upside potential ( we are okay with 1 to 3 year with break even i). We are interested in value add and appreciation over long term.

3) Vacancy rate and demand in the area ( we know in the areas we will buy the cap rates will be low so we want to reduce vacancy as much as possible and we want area where there are less rental properties)

4) Job growth and population growth

5) Average rent in the area and rent growth potential

6) Prefer close to where we live as possible. We like to drop by our properties once a month and be able to go there quickly once there is an issue

@Kevin Wood

 In regards to your point of having 9 Atlanta rentals vs one in San Francisco I would rather have one in SF. I don't have to change 9 roofs and other capex items that come up over time.

I would always have a higher quality asset than medium quality even if return in the near term is lower.