All Forum Posts by: Page Rosenlund

Regarding the podcasts on mobile home parks @Mike S., I've listened to all of them, some of them many times:) There's a lot of good info in there, I should probably go through them again. Ultimately I would like to shift them to owner occupied but for now I need the cash flow.

I could but that's not my problem. My issue now is I have a SFR, 1 unit in the 4-plex, 3 mobile homes and 2 lots all vacant because they need some amount of work to be rented, but....we're out of funding. Man, it's frustrating. Also, what I didn't mention is I'm doing most of the work myself. So I do what I can that doesn't cost much but I can see I need to make a change.

:) @Matt P. I appreciate your honesty and I might agree with you. I mean I do agree with you but I also think it's necessary that I have this little setback to learn the processes....does that make any sense? But you do have me thinking, on a project of this size where there's almost no end of ways to improve and value-add, how would you know what amount of capital you need?

A little clarity- the park was under half full but since then I've brought the occupancy up to 68% or 17 of the 25 are rented. So to answer @Jason Ray Richardson, I actually haven't lost any of the tenants. Also the financing was from a bank and we've already got 18 months of interest only payments, so that option is kind of out, although I could see if they would extend my original line of credit.

Thanks @Robert Biggerstaff- The units that are rented now definitely pay the bills. Good advice on setting specific goals.

WOW is right....people's ideas on how to make money are interesting!

I've been lurking for about a year, reading blogs, forums, listening to podcasts anytime I'm on the road. I've learned a TON! Thanks BiggerPockets!

So as we all know, the best lessons come from experience, and the intent is to mitigate our losses while learning these lessons, correct? Kind of a one step back, two step forward type of deal. Sometimes more like 6 steps back and 6 1/2 forward but hey, we're learning. I'm reaching out to you for guidance in minimizing my losses and taking those two steps forward.

Here's the situation-

June 29th 2018- Purchased a local mobile home park that included a 4-plex, duplex, SFR and 18 lots, under half full, 52% vacancy rate. This property spent it's last 10+ years under neglected ownership, poor management, bad tenants. I think only 3 of the tenants paid ANY rent for all of 2017. Most of you have seen these situations a hundred times.

I bought the park for $225,000 with an additional $80,000 line of credit for rehab capital.

We spent the rest of the summer moving in mobile homes, rehabbing the 4-plex, repairing water/sewer, etc.

Here's where the lessons really begin...

January 1st 2019- All $80,000 of rehab capital is long gone. 33% vacancy. Gross rents $6,400. 

This isn't easy to admit but we're running month to month trying to keep up on bills now. It seems that each month we pay out more than we take in for rehabbing, repairs and unexpected costs. It's not so bad that I feel like we're going to lose it, we're definitely gaining ground, but bad enough that I need to make a change.

Please help me get out of this! Any suggestions for building up reserves? How much should I have set aside for a project like this? Do I need to be more patient and rehab less? All thoughts and questions appreciated :)

Like it was mentioned your mind is your greatest asset. You're young, resilient, willing and capable. You do NOT need cash to get started. You could bring me the best deal the world has ever seen and if I see you're unwilling to learn and adapt I won't work with you. If you find a good deal, work the numbers, BELIEVE in the property, you'll find the money. Again, like someone mentioned, I'd look at private money. I'm 28 and I've never had much, no extensive schooling, cash reserves, or high paying jobs. I was able to purchase a mobile home park, 4-plex, duplex and SFR last July with no money down. It was crazy easy. I think if you've got fire inside you'll make your way.