All Forum Posts by: Ryan Beckland

That Realtors take the first 6% equity gains. 

Curious what others are paying for insurance as a percent of overall property revenue. My latest quote (I get quotes once a year) is 6.3% of annual revenue. Seems a bit high to me, but I'm not sure. What are you guys paying? 

Yes, I buy homes in a park and pay the lot rent until they sell.

In my experience, you've got to put a minimum of 20% down in order to get a bank to give up the money on a mobile homes. Also, you need to impress upon the bank that it is a MANUFACTURED HOME, not a mobile home.

It helps also to go to small local portfolio lenders rather than the big banks that package their mortgages and sell them off. Having said that, I did just get a loan, as an investor, from Bank of America for a manufactured home (double wide mobile home) on land. I had to put down 20% though.

I live in KS and I work in the MH niche (including double-wides on land). Contact me and we can talk about your situation.

As a rule you need a minimum of a 12% cap rate for a MH park deal. In order to calculate whether this is a good deal or not, you should use the following formula to arrive at a ball park purchase price:

lot rent x # occupied spaces x 60 PLUs
lot rent x # unoccupied spaces x 30
then you've got to add a resonable price for the park-owned mobile homes.

So if your lot rent is $150 per month, then it should look like:
150 x 16 x 60 = $144,000
150 x 3 x 30 = $13,500.

So the value of your park (land, hook-ups, etc) is around $157,500. The you add the value of your mobile homes.

I sell mobile homes on contract (not rent-to-own). I wouldn't buy a home that I couldn't get triple my wholesale price for. So if my market analysis tells me that a 1993 3/2 single wide will sell for around $10,000, I'd buy it for about $3300 MAX, and then it depends on condition.

So i you've got 16 1993 singlewides that you can sell for $10k each, then you can pay $52,800 for the whole package.

I wouldn't do rent-to-own. What you do is sell them on a promissory note and retain the title as the lienholder until the note is paid off. Remember that MHs are not real estate, so you've got a lot more flexibility in terms of what you can do with them. I usually charge 13-18% interest and my average monthly payment is $250 for a home.

Now, you should also realize that banks will be very hesitant to loan you the portion of the purchase price that you are using to buy the mobile homes. Banks don't usually lend on mobile homes. You might try to get the seller to carry a second for the price that you negotiate on the homes.

Be sure to do A LOT of due diligence. The infastructure of the park needs to be thoroughly checked. Also, city and county governments tend to dislike mobile home parks. make sure that you can retain the zoning that you need to keep the property as a park. Another thing is that you should be sure that the spaces can accomodate 16x80 mobile homes.

Thats all I can think of. Hope it helps.

I find most of them by driving through local trailer parks. I also find them in the paper. I've developed relationships with MH park managers, and they refer me business all the time. I pay a manager $100 for a referral the results in my buying a home. Since the manager is the first to know when someone is moving out, i get lots of referrals.

On Wednesday I bought a MH for $3500. On Monday I sold it for $9500 at 12.75% interest with $500 down, paying $426/month for 24 months. Total time investment equals 5 hours. Yield = 162%. They're not tenants, so I don't have to worry about maintenance. If they default, I can evict them as easily as if they were tenants (MHs are personal property, not RE, so easy to repossess).

Say they default after 6 payments. I made $500 (down) plus 2556 in payments. I've got all my money out of the deal, I made about $50, I can resell the home and collect another down payment.

This MH deal is going to cash flow more than most of my rental property. Its a great way to make short-term cash.

It depends on your goals and how much money you have. Be more specific.

This is my first post. I just bought my first property and it needs a bit of paint before we can put her on the rental market. I've always applied paint the old fashioned way - with a rolller and brush. But I'm thinking of buying one of those paint sprayers. Anyone have any experience? I'v hear they use a lot of paint and that the overspray can be bad. I'm looking at both the pneumatic type and the airless electric type. Any info will help. Thanks.