All Forum Posts by: Page Rosenlund

Hello, my wife and I own an 18 space mobile home park, 1 SFR, 1 Duplex, and 1 4 Plex. It was bank owned and in terrible shape, we've owned it for 5 years and it's currently 85% occupied and making money. (Thanks BP!! 😊)

In 2024 we partnered with a family member, call him Travis, and he has taken over the maintenance and improvements. We have 8 kids and I want to spend more time with them so instead of selling we decided to partner. If it was up to me I would just given the whole thing away and forgot about it but my wife, thankfully, has the brains to think logically and not give up everything we've worked for.

We were pretty hesistant to lead Travis on with big expectations so we started the partnership with $1,000 buy-in and 5% ownership with the promise of being able to increase the partnership in time. We're now wanting to set some benchmarks for Travis so he can work towards earning a larger share of the business. To be fair, Travis really wants this too. Travis is a true craftsman with extreme humility and wisdom beyod his years. So far it's been a huge win-win and we couldn't be more excited for the future and I want this to last.

The questions I have is what would be some good measurables for Travis so he can aspire to bring more value and therefore earn more ownership?

Thanks!!

 A little over a year....but what are you using now?

 Sage advice Matt.

 Yeah I probably could, I'd have to sell at a steep discount but maybe it'd be worth it. Unless I sold one that's already rehabbed and rented out....

Oh boy @Jason Powell, I just don't think I could sell it now. It might not be the wisest financial choice to hang on to it but I just can't imagine letting someone else take it over. Maybe in a couple years but not now when it's in a seemingly vulnerable position. I fought tooth and nail to acquire this property and so far the education it's provided me with is invaluable.

I've thought about that quite a bit @Cassi Justiz. I did sell one home as a handy man special;) I bought that particular home from a private party before I owned the park actually. I paid $180, and that might've been too much:) Either way I turned around and sold it on terms as the "handy man special." But as it turns out, not everyone is a handy man, especially not this guy, polar opposite actually.

On a more serious note, the SFH is kind of right in the middle of the park. I've thought about breaking it off and selling it, do you think I'd regret it later? I could probably only sell it for $30,000 as is. Once I put $6k into it I could rent it for around $600.

You bet @Victor S. These are rough numbers.

Rent- $6,400

Electric- $400

Management- $640

Propane- $200

Water/Sewer- $1600

Loan payments- $1200 (currently interest only until DEC 2019)

Taxes- $200

Insurance- $500

Net- $1560

I have a meeting with my accountant this morning....these numbers make me nervous!

I've wondered about a debt vs equity partner @Jason Ray Richardson. Can you expound on your reasoning a little bit?

Thanks @Carleen L.! Yes the current rent is more than enough to meet our monthly debt payments. And yes, it seems I tend to lose focus at times and work in several places simultaneously.