John Fedro
Thank you for the prompt feedback.There are some great communities that are in the $700 below range on lot rent here in south florida. To be honest I have not seen many $20k or less mobile for sale. The ones I have seen needs some form of rehab work. In my current financial state; I prefer trailers turnkey. A little paint and cleaning at the worst however, I do understand that the better deals (trailers) may need work. If a seller wants their money within in 24-36 months I am current I could creativity come up with a plan to make that payment but I would much rather pay back within 5 years or less. I figured with tax returns and or other tax breaks I would be able to pay off and or pay down those obligations.
My aim is surely to have a cash flow of $400-$300 per month per mobile home. I recently spoke with a mobile owner who I found on craigslist and he mentioned his neighbors were renting there trailer to a tenant for $1300, somewhere in Davie, Fl. The lot rent is $700 and it has all the amenities. When I first considered this investment strategy, I was under the assumption I would have to rent these trailers for a max of $800 and I would have to only go in communities that no lot rent. Fortunately, I was told by several current trailer renters that they pay in the ranges of $1200-$1400. These tenants work mostly have laboring jobs and or cannot qualify at nearby apartment complexes. Thus with lot rent, capX, and related expenses I feel that I could strive for the $1300. As you said, at the beginning of your mobile home renting journey you had lower standards for individuals in order to get cash flow.
I will strive to be a little less and or right at the same point of local apartment complexes. One huge advantage I would have market to my potential tenants would be they have neighbors on top or under them. I will surely ensure the park I intend to buy into allows subleasing if not I will need other funding support to purchase these trailers. I agree, I will surely test out my method on myself; the borrow from online funding group. More traditional funding ie banks, would not dare lend money without having something attached to the loan. One firm online quoted me at $176 per month for 10k, once qualified. Once I proof my method works and pay back at least one relative I am sure I will have to stop answering my phone because everyone will call. I would say one thing my relatives can say about me is, I am responsible and trustworthy.
Yes I will ask 20-30 relatives and ideally without knowing their credit worthiness I am sure only half of them will qualify with these lending institutions. I have a 401k that will allow me to assure them there is a exit strategy and I will get a notarized letter and or a contract drawn up. I agree allowing the mobile homes to pay for the expenses and the acquisition however, the sellers may only do the deals if I give them upfront money.
Currently, there is one investors selling 10 trailers in one park where the lot rent is $600. When you say underwriting situations that might come up what are you referring to? While this is all legal, I will strictly do this with relatives, I will not need any underwriting besides the online lender qualifying the relatives. My current exit strategy is to sell the trailer for the current rate and pay off my debtors.
My ambitious spirit speaks to me every day and can’t understand why I wake every morning making someone else rich (my 9-5).
If you have any additional advice and or suggestions please keep them coming.
I'm also honored you took the time to give me feedback. I heard all you podcasts and I frequently go to your traveling website. Take care and I look forward to hearing from you soon.
Regards,
