All Forum Posts by: Ronald Starusnak

..If you buy a property at an 8% cap rate and then you increase the performance to where your property is now a 12% cap rate, you've just increased the cap rate and that's a good thing. You're somehow missing that a cap rate is an indicator of property performance, not a metric for selling the property. I have a property with a 31.5% cap rate, I'm not selling it at a 31.5% cap rate, if I were to sell it right now I would ask an amount that would make it an 8-10% cap rate of course. 

 What? The cap rate increases by itself if you increase the performance of the property. You can't arbitrarily increase your cap rate whenever. When the cap rate goes up, typically you refinance or sell the property or just enjoy the great return. Cap rate does not make the property worth less, some people see high cap rate properties and think there is a catch but not always. 

Send me the property address and I'll tell you who owns it and is paying the bills. 

Robin, contact the City of Syracuse Codes office and request an inspection for the certificate of occupancy and let the building fail and then request the city place a condemned or similar notice. This will force the tenants out even with the eviction moratorium if the building is deemed unfit to live. Lack of water, heat, or sewer are instant fails. They may tell you that you have to X days to repair but just let them know you can't afford it right now and you'll get it it. 

Hey Scot, is this note still available? 

Kris, I can't advertise on this post but I will send you a message.

www.RENPRO.org

I don't think the owner is interested in any type of owner financing as it was an inherited park and they seem to want out quick and painlessly. 

Hey guys, I made a post to my friends on Facebook to see if anyone would be interested in selling a mobile home park or if anyone knew someone that had one for sale. I ended up coming in contact with someone who has a small 14 unit park with lot rents below average. The park owns 4-5 trailers and the rest are owned by the tenants. The park needs about $80-$100k in work but I think due to the circumstances we can get the entire park for $200-$225k but before I make my formal offer to the owner I want to see what kind of financing is available for a park like this. We have extensive experience in construction, remodeling, management, and SFH / MFH investing but no experience specifically in MHP investing.

Why are you even telling people to liquidate their properties? Your reasoning doesn't mention at all how this would effect people with rental properties. There will always be people renting properties, why would the individuals who own these rentals have to sell just because non-investors are going into foreclosure? Where are those who go into foreclosure going to live when they lose their home? I don't know about anyone else but I think we could break even every month with 50% of our tenants paying.

Non-investors who may go into foreclosure should not trigger a mass sell off for everyone else. The only ones that should consider selling are flippers and there are still banks out there that will refinance those flip loans into loan term loans at 80-85%. You might have some money stuck in the property but nothing dire. 

Farchione & Bowman out of Syracuse, NY.