All Forum Posts by: Robert Wiltshire

@Frank Rolfe 

Mr. Rolfe, he wasn't asking anything for it and wasn't interested in selling it.  He mentioned all of the postcards and letters that "the kids these days" keep sending him but that I was the first person to actually come and shake his hand.  I was in the area looking at a 10 unit multifamily that we lost when someone overpaid due to the location being desirable.  He didn't give me a number and I told him I'd give him about a week and then call him back and we can start talking numbers.  I think we'll be somewhere in 300-400k range though based on the way he talked.  Once we're through with that initial discussion and assuming that we are in the same ballpark, I'll start looking through the units to get a better idea of whether or not we'll be demolishing any of them.

Agree with your numbers though and that was similar to the bar napkin math we ran.  Lot rents in the area are all $250 and up, so i'm pretty confident that I can get them to that level. 

My question is, would it pass bank underwriting if i made my lot rents $300 and rented or ideally rent to own them for 150 each for the existing older homes? 

That puts the above scenario at 30 lots x $300 x12 x .7 (we'll be submetering all units) = NOI $75,600

Bumping our value to around $750k at a 10 CAP

Is that allowed or is there an industry standard ratio between lot rents and home rent for POHs?

Thanks again!

BPers,

Looking at a 44 unit park with about 40 park owned homes and 4 empty lots.  Currently has 10 tenants that the owner keeps to cover the expenses.  He owns it outright and removed all but those 10 tenants when he paid it off, because he liked them and they were no trouble for him as an owner/manager.  According to him, he was waiting to see if it would get acquired and redeveloped by a large retailer (Walmart, food lion, etc...)  

There is a 56 unit park next door in similar condition that is full and rents 2/2s for $525.  The park I'm looking at rents his for $450, again because he likes the people and he doesn't need the money.  I have no doubt that given it's location in town I'll be able to fill it quickly, but I had some questions to advise my underwriting.

When I start renting or rent to owning the current POHs, can I set the ratio of lot rent however I'd like?

Lot Rent/ Home Rent $225/225; $300/$150; $350/$100 etc

Or is there an industry standard that I need to follow for underwriting?

Thanks in advance!

@Michael Ealy thank you for taking time to field questions, this has been a very informative post.

Not on your list and I don't want to steal a chapter from your book, but I'm curious about your planning for repositioning a property.  I've seen you reference taking some places that had immense upside, but that it takes a lot of skill.  With the market that we are in at the moment, those properties would certainly open up other opportunities. 

Thanks for your time

@Chris Levarek and @Nathalie Chew thanks for the recommendation.

@Tj Hines great suggestion and one I hadn't considered.

@David Miller thanks, that will cover two bases!

@Danny Randazzo much appreciated

@Christian Hansen I'll message you shortly

Hey BiggerPockets, I am looking for recommendations for property managers in NC for 10-30 unit properties. My focus will be Fayetteville, Raleigh, Charlotte and surrounding areas.

I'm also interested in brokers that you guys have had a good experience with in the past if you don't mind.

Lastly, thank you for all of your contributions to the forum. I've learned so much from you all and look forward to making the transition from single family.

-Robert

@Joseph Druther thanks for the heads up, Brooke and I will be there.