All Forum Posts by: Reid Hanley

Bump for this question. I just set up my LLC EIN and had the same instructions from the IRS website. One difference is my wife and I have a multi-person LLC so the IRS system defaulted us to the Partnership classification. Are there any downsides to this for tax purposes or should I file Form 8832 to be designated as a corporation?

Thanks BP for any input!

@Account Closed thank you for that input.  I had that good advise from someone else locally as well.  I have called the county and was told I would have one year to replace any MH that was moved or needed to be replaced due to damage.  After that time they would not permit it.  In fact, there is a parcel directly across the street from mine that had 4 MH's on it.  A storm damaged one and the land owner (who didn't think about this point) waited too long to begin to replace it.  She now has 3 MH rents instead of 4!

I agree that having that in writing from the county is prudent.  I'll get that done before closing.  

Thanks again.

Thank you for all the input everyone.  We'll be closing on this deal in two weeks.  I'll update this thread with any good/bad that comes from this scenario.  Don't see much downside except that getting the tenants to agree to own their trailers is likely doubtful. 

I have found several parcels of land in my area that have multiple Mobile Homes on them, in essence they are mini Mobile Home Parks, but they aren't zoned as mobile home parks.  The mobile homes on all these parcels are owned by the current land owner, so in effect these are Park Owned homes.  My question is, is there an advantage or disadvantage to owning a piece of land with Mobile Homes on them vs owning a piece of land zoned as a mobile home park?  

I believe current zoning would prohibit me from increasing the number of MH's on these parcels, but I would be allowed to maintain the current MHs and continue to rent them out.  Could I sell these MH's to the tenant and charge a lot rent (as in operate it as a Mini MHP)?  I see these as purely cash flow opportunities, although I think offering these homes for sale to the tenants is a great idea. 

I spoke with 21st mortgage this week for a property in Florida I am buying. For non owner occupied they told me they would loan maximum of 55% of either appraisal or purchase price, which ever was less. 

Would anybody who has good or bad experience accepting HUD payments please let me know your thoughts on the subject. I have seen several rental ads that specify no HUD accepted so I'm guessing that is a red flag for many potential tenant problems. Just have not had any experience with it yet.

Some people are just lazy, unorganized or even embarrassed about how they have run a business so showing that is not something they like to do.  Just have a WTF conversation with them one final time.  if they give you what you need then great.  If not the deal will have to stand on the merits of your best guesses.   Since you have it under contract already hopefully your out clauses give you the ability to adjust the offer price if something looks off.

I'm assuming there are some potentially significant park provided expenses (water, sewer...etc) you want answers to.  If so, maybe they would allow you to get this information directly from the utility providers?  I would think you could estimate all the unknowns with some area market research and a few thorough inspections of the property infrastructure and MH's.

I'm new to this, but I believe bank's valuation of the property will be very dependent on their familiarity with MHPs and their comfort level with them.  As I'm sure you know, there's virtually no value in the MHs themselves, but a good deal of value in the cash flow they can generate.  Some banks will get this others won't.  I would propose to lenders that you're planning to convert the park owned homes to owner occupied as quickly as you can via 3-5 year seller financing. Owner occupied MHs are more stable tenants of the MHP and more likely to help revenue be consistent.   Some lenders will only consider lot rent in their valuations of non owner occupied MHPs. 

Following this one. Hope you get some good replies.  

I have an opportunity to purchase three MH's and the land they all sit on.  The cash flow numbers work on this deal, but there is a red flag in that the titles to the Mobile Homes are not in the sellers name.  There is a clear record of the transfer of ownership of the land to the seller, but the titles to the MHs themselves were not transacted correctly over the years.  They are still titled in the name of two prior sellers ago.  To complicate this further, I believe the Title Holder of record may be deceased now.  What options do I have to acquire legal title to these MH's?   

About to pull the trigger on this deal.  This looks like a slam dunk deal to me.  What redflags should I be looking for or questions should I be asking the seller?  These are all 1970 era MHs, but for their age are in very in good condition.    How would the MH pros out there be valuating this property given the mobile homes are fully depreciated and likely have little to no NADA value?