All Forum Posts by: Robert Lenfestey

I will check.  The park was built in the '50s and we bought it from the 80-year-old children of the original owners. Thanks for the suggestion.

@c.k. ebert We had several unoccupied lots that people have moved into and set up their own electrical and plumbing connections.  The residents paid private electricians to install the service poles.  Since the residents paid the private electrician to install the pole, the pole, panel and meter box belong to them.  I'm just not sure about the legacy poles that were installed before we bought the park.  They were installed so long ago no one remembers who installed them. If the resident installed them, then it would belong to them.  We do provide communal infrastructure such as roads and dumpster, but the residents have an agreement with the city to provide water and the electrical company to provide power to their individual homes, we aren't involved in that.  We also aren't involved in providing cable or phone infrastructure. 

We purchased a 44 lot mobile home park a year ago.  We have no park owned homes, all are owned by the residents and we collect lot rent only. Each home has an electrical service pole that consists of a meter, meter box, and main panel.  The investors who have moved homes in recently had their own service poles installed that belong to them.  I'm not sure who owns the rest of them, us or the residents.  Maintenance of the power line above the pole is the responsibility of the electrical utility. Can we dedicate the poles to the residents so that they are responsible for repairs and maintenance?

Hi Jeremy,  could you PM me the name of your handyman I’ve been looking for someone like that.

Thanks

Hi,  

What is the correct for to use for Offer to Purchase and Contract for a Mobile Home Park?  I am preparing an offer to purchase on my first Mobile Home Park.  My attorney has prepared a form 12-G Offer to Purchase and Contract Vacant Lot/Land.  The mobile homes are all tenant owned so we aren't buying the Mobile Homes, but there are several storage buildings for landscaping equipment. We are also buying the plumbing and electrical infrastructure so we aren't buying vacant land.  I think we should use form 580-T.  Does anyone have experience purchasing mobile Home parks in NC?  What form did you use for the Offer to purchase and contract?

Thanks.

Rob

I have a tenant who decided to purchase a house 4 months into his 12 month lease.  I listed the property the day he told me he was planning on purchasing a house at the same rent he was paying.  He moved out 2 months later.  He left the property during the slow rental season during the holidays.  He continued to pay rent 2 months after he moved out, then stopped paying rent.  The property remained vacant for 4 months, then rented at the original listing price for a two year lease.  I plan on seeking a judgement for the lost rent and late fees that accrued during his tenancy, which, after the security deposit is just under $5,000.   He makes $150 k/year and bought a $573k house, so he has assets to go after. My question is:  Can I recover my attorney's fees as well in small claims court.  My lease has language specifically stating that all legal fees incurred recovering rent in the event of a breach by the tenant are the tenant's responsibility.  Has anyone been successful in recovering attorney fees in N.C. specifically Wake County.  I know I don't need an attorney for small claims court, but if the tenant is responsible for the attorney fees, then there is no downside. 

@Account Closed Hi,  I've begun listening to your podcasts.  They are really excellent.  Do you attribute any value to undeveloped land, or is the value only based on the lot rent.  I am considering proceeding as follows.  Lot rents are $200 in this area, there are 12 occupied homes.  Taxes are $2500 per year. General liability insurance is $1600/year. 

Gross rent:                                     $28,800.

-Vacancy 10%:                                       -2880

Effective Rent:                                     $25920

-Management Fee: 10%                       -2592

-Property Taxes                                -2500

-Insurance                                         -1600

Annual NOI $18,940

Cap 10

Purchase Price                           $189,400

I'm planning to allow the owner to maintain ownership of the homes and collect rent and pay me the lot rent of $200. There are several other red flags that you mention in your podcast (weekly rentals, in the county but close to good employers). Is that an appropriate evaluation and if I can get it for that price, would it be worth it.  I plan to convert to monthly rentals, and either leave the homes with the seller, or buy them wholesale for $3000 each and sell them to the tenants. My value add would be running the park more efficiently using the methods you cover in the podcast.

All 12 are Park Owned Homes. I am interested because of the potential for adding additional pads on the remaining 5 acres.

@Salvatore Lentini 

Hi, it has one gravel road, no curbs, no driveways.  Public water and sewer. Utilities are tenant's responsibility. Homes are park owned.  We found a lender who said they would use an income approach appraisal.  What sort of documents do I need for analysis and due diligence? Is it reasonable to get tax returns from the seller?

It has one gravel road running through the property.  More land would need to be cleared, plumbing electricity and a gravel road put in to put in more pads.  The homes are park owned.  I will check on age of the homes.  The water and sewer are provided by the city and are paid for by the tenants.