All Forum Posts by: Robert McConnell

@Tom Kentop Jr

Hey Tom - Just checking in to see how you made out at the Ulster Tax Auction? Deed/lein auctions is a niche I am interested in as well. 

@Chris Ebert

Thanks for the reply. I don't think I have got that far down the rabbit hole to focus on one over the other. It is funny you mention that; I invest in New York State so a turn to full communism is something I have been dwelling on a lot recently.   

@Brenden Mitchum

Thank you for the reply. Has your experience been most TOH come from new tenants moving in with their own MH or leasing to own an existing MH on your lot?  I guess some of my concern was based on tenants not having the capacity to make the lease to own payments and trending toward TOH. This is one area I am still trying to wrap my head around. 

I agree with your point on occupancy. One of the things I like about MHPs is I can see tenants post-covid looking to find less dense and more private residence options.   

Hello all,

I am currently looking to reposition my small portfolio of SFR and duplexes into something bigger. I am reading Laura Cochran's MHP investing book and have listened to a few MHP podcasts on BP and other sources. So far I love a lot of what the MHP asset class has to offer as I am interested in cash flowing assets with an opportunity to add value and increase equity.

My question is what challenges or changes do current MHP investors see coming in the future for the asset class? I realize no one has a crystal ball but one concern I have is it that POH will become much more common than TOH. Particularly if the economy worsens and lower income demographics are hit particularly hard. Owning a park of mostly POH seems like a drain on CapEx and management resources as it is similar to owning a bunch of low quality SFR.

Also, do you see millennials embracing the MHP model as a place to live? The perception many have is that it tends to attract retired baby boomers on fixed income. That demographic won’t be around forever so who replaces them? 

Any thoughts or suggestions are greatly appreciated. I am still trying to wrap my head around this as a potential future investment but I want to fully understand the macro level considerations. 

Thank you!

Robert

Hey Miguel and Brian.

The rehab costs were 21K. After the 75% LTV refi I had to leave 24K in the deal. Not awful but I eventually want to get to the point where I can pull all my money out and repeat the process.

Just completed my second BRRR. It is a two-family outside Albany, NY, in the town of New Scotland. During the rehab, we replaced all floors with laminate, new roof, new appliances, new bathroom vanities, and we pulled up the landscaping.

Purchase price: $175,000

Recent bank Appraisal: $230,00

It now rents for $1150 a unit. Up from $950 (and one vacancy). The first two photos are before and rest are after. I'm liking the BRRR strategy but would like to step up to multi-family.

Bob

Thanks for the reply Paul. It is a lot to consider. A quality management company or person to help me remote manage would be important. I understand management costs can be up to 30 percent of the gross rents collected for vacation rentals. I would need to find a great deal for that to cash flow.

Greetings,

My wife and I are considering investing in a vacation rental in Puerto Rico once the dust settles down there. We have only visited once but loved the island and the people. I think there is some real upside to the RE market in PR, especially if the US government offers loan incentives similar to what was provided in New Orleans after Katrina.  Another motivation is I currently have a few duplexes in upstate NY and wouldn't mind diversifying my portfolio a little. 

Does anyone have experience with vacation rentals in PR? I would love to hear what your experience has been. Just doing a  quick internet search it doesn't appear vacation rental property management companies are abundant. I am also curious about the different markets. I am particularly intrigued by Rincon and the northwest coast in general.   

thank you!

Robert

Thanks for the advice Ahmed. I do think I will be able to push the rents up a bit. 

Yeah same house. The foundation issues scared a lot of buyers away. I was fortunate to be put in contact with a engineer and contractor that had some experience with these issues.