All Forum Posts by: Rick Zink

I have an opportunity to purchase divided property with 4 single wide mobile homes. They are older but in fairly good condition. They are two bed one bath units. I have never owned any of these before and am curious what I can expect with regards to renters. The price is extremely attractive at $55k for all and I am expecting to get somewhere in the $500-$600/mo range on them. I’m just not sure what I am getting into tenant wise. Any thoughts would be appreciated.

Most bank loans are only going to loan up to 80% of the value. If your paying $80k for a property that has an ARV of $110k, there is not much meat left on the bone to borrow against or for profit as a flip. You need to be in it for less if you are looking to BRRRR it.

What is the status of the seller? Are they just wanting out at any cost. Ask if they would consider carrying all or part of the note. Ask your father to partner with you. Depending on the ARV vs. Repair Costs, you could Buy on an HML, get the repairs completed and get the tenants in and put it up for sale. A recently renovated duplex with both sides rented for the next 22 months will be a very attractive investment to a lot of investors. You could wholesale it to another investor. Get creative and make it happen.

Lacy, It’s good to see someone on here from B’ville. I miss that area like you can’t believe. My wife and I are actually trying to move back. Hopefully it won’t be too long. As far as your idea goes, if I’m understanding it correctly, you have located an RV community that essentially sells RV lots instead of renting them. Your idea is to purchase a lot and rent it out to transient RV travelers through the area. Almost like a VRBO except you would bring your own house. On the surface this sounds like it would be reasonable but I would ask how you plan to market the concept to your customers. As a fellow RV’er, when I am traveling and need a RV campsite, I google RV camp grounds. I have never come across the concept you are mentioning. I am not saying it won’t work. I am just suggesting that you consider all the angles before moving in it. I don’t want to see a fellow Arkansan get hurt. Also, please send a colleague request to me. As mentioned above, I want to move back. Part of my plan to get back is based on REI. Maybe we could discuss doing a couple of joint ventures.

Shray, PM me. I can take a look at it and give you a better idea what needs to be done. It sounds to me like they are trying to make a few more bucks than they should on this. I live near Greenville so looking at it wouldn’t be too much of a big deal. If you interested, PM and we can exchange contact info.

I own a rental that produces $250/mo cash flow currently. My wife and I want to buy another rental or a fix-n-flip. We are considering cashing out the equity in our rental via refinancing. The property is valued at $150k and we owe just under $90k. We have no experience with HELOCs so we are wondering if we should consider that route. We are just on the fence. We are not sure we want to pull out the equity. Any advice would be appreciated. Thanks in advance.

If the mortgage is distressed talk to her bank. You may be able to assume the loan, rent it out and help your grandma with the generated cash flow. The bank wants the money, not the property. Just remember to get to a decision maker. If they are looking at the cost of foreclosure and someone walks in with the ability to pay, they will work with you a lot. I would start off asking for all back payments to be forgiven and ask for a principal reduction. You won’t likely get it but it you don’t ask the answer will definitely be no. Have a good negotiation strategy planned out and follow it. Don’t be afraid to shame them about throwing grandma out. Good luck!

How long has she had it? Are you going to assume payments? Or are you having to bring cash to the table? If so, how much. Ask the bank what it will take to get the loan current and see if you can work an angle there. If there is reasonable cash flow and she is willing to forfeit any equity or you will not be in it too much, I would say buy and hold. Especially if she wants to stay. Property will always appreciate. Maybe not at the rate we would like and if for no other reason than inflation. If you cash flow $250/mo over 20years you’ve made $60k for a presumably low investment. Sounds like there is a deal there. You just gotta flush it out.

It sounds to me that neither of you have defined the partnership in detail. Make sure you do that first before working any deals. Your doing yourself and your partner a disservice if you don’t. Setup an llp of some sort. Get your ducks in a row...then go shopping for a deal.

I am wanting to meet some other investors who are experienced in the North Dallas markets. I am interested in fix and flips as well as some buy and holds but am also open to other strategies. Please message me. I would like to expand my network in this area to assist in property acquisition. I’m wanting to step up my game the last half of this year.