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All Forum Posts by: Robert Lenfestey

Robert Lenfestey has started 14 posts and replied 22 times.

Post: First Time Mobile Home Park Investment

Robert LenfesteyPosted
  • Real Estate Investor
  • Cary, NC
  • Posts 27
  • Votes 3

I have the opportunity to buy a mobile home park. I asked a broker I know about multifamily investing opportunities and he showed me this property.  It is not listed on the MLS. It is 5.7 acres, currently has 12 mobile homes on it renting between $430 and $563 a piece for a total monthly rent roll of $5854. The owner is asking $320,000. Real estate taxes are $2500 annually. It is close to being a 2% deal. The purchase price may be negotiable and the rent is slightly below market and could be raised to $6400 monthly which would make it a 2% deal. I would like to get the seller's actual maintenance and repair expenses for the past two years. I can also see a value add from raising the rent to market rates and adding more pads to the property. This is my first non SFH investment so I am a bit out of my element.

What additional information do I need to assess this deal?

How do I get the additional information? (Is it reasonable to request tax returns, or schedules)

Post: First Time Mobile Home Park Guidance

Robert LenfesteyPosted
  • Real Estate Investor
  • Cary, NC
  • Posts 27
  • Votes 3

I have the opportunity to buy a mobile home park. It is not listed on the MLS. I asked a broker I know about multifamily investing opportunities and he showed me this property. It is 5.7 acres, currently has 12 mobile homes on it renting between $430 and $563 a piece for a total monthly rent roll of $5854. The owner is asking $320,000. Real estate taxes are $2500 annually. It is close to being a 2% deal. The purchase price may be negotiable and the rent is slightly below market and could be raised to $6400 monthly which would make it a 2% deal. I would like to get the seller's actual maintenance and repair expenses for the past two years. I can also see a value add from raising the rent to market rates and adding more pads to the property. This is my first non SFH investment so I am a bit out of my element.

What additional information do I need to assess this deal?

How do I get the additional information? (Is it reasonable to request tax returns, or schedules)

Post: Recovering lost rent after a broken lease in NC

Robert LenfesteyPosted
  • Real Estate Investor
  • Cary, NC
  • Posts 27
  • Votes 3

I have a nice townhome rental that rents for $1550 per month.  The rental market in this area is very seasonal being very hot April-September and cold from October-March. Last June I listed it and had multiple offers and ended up accepting a young couple with good jobs and credit. They signed a 12 month lease. They seemed ideal, they paid rent early and kept the place reasonably clean.  Four months into the 12 month lease they called and said they were interested in looking for a house in the area.  I told them they were responsible for the rent for the duration of the lease, but that I would relist it as soon as they told me they gave me a move out date.  I explained the seasonal nature of the rental market as well.  They called at the end of October to and told me they were under contract for a house with a move-out date in early December.  I listed it that day, but had no showings during the holiday period, which is not unusual and sporadic showings since.  He paid rent in December and January, but is refusing to pay rent for this month because his new house expenses are too much.  It turns out his new house is $573,000 so I have a hard time feeling too sorry for him.  I plan to pursue the rent he owes me. He has 4 months left on the lease so at most $6200. 

I have one months security deposit and no damage to the unit that will go toward unpaid rent.

I have 2 questions.

1) Should I pursue this in small claims court or engage an attorney.

2) Do I pursue the late rent amount each month or pursue the entire amount after the lease ends at the end of May or when a new tenant moves in whichever occurs first.

Any first hand advice is especially appreciated.

Post: Eight-plex for first multifamily

Robert LenfesteyPosted
  • Real Estate Investor
  • Cary, NC
  • Posts 27
  • Votes 3

I have several single family properties and am looking to get into multifamily. I have come across an 8-plex listed at $560,000. Each unit rents between $615 and $750 for a total gross rent of $5530. There is a $180 HOA due per unit per month. Tenants pay for all utilities. The area is on the busline near a university and the listing says is popular with grad students. The units are in the process of being upgraded by the current owner and may generate higher rent once upgraded, Possibly $750 each for a total gross rent of $6000. I like the idea of an 8-plex, but the $180 per month really impacts the cash flow. I am a licensee so I would receive commission acting as my own agent which would potentially reduce the price 1.5%. What considerations should I have with an 8-plex that differ from single family?

Post: Prohibit Unrelated Adults

Robert LenfesteyPosted
  • Real Estate Investor
  • Cary, NC
  • Posts 27
  • Votes 3

Hi,  I recently had 2 roommates move into one of my SFRs.  This was their first place after college and they treated it like a frat house.  It was awful.  I would like to prevent this situation by prohibiting unrelated adults.  Does this in any way violate fair housing law?  Roommates are not a protected class, but I want to see if anyone else has done this.  Also is it wise to publish your minimal rental criteria on your website to weed out prospective tenants who wouldn't qualify based on credit or income requirements?

Post: Cozy.co reviews

Robert LenfesteyPosted
  • Real Estate Investor
  • Cary, NC
  • Posts 27
  • Votes 3
Hi, I've been looking into automated ways to accept checks. Brandon Turner mentioned Dwolla on a recent podcast. I've also looked at buildium. Another user mentioned cozy.co which seems ideal. It's free and includes ach as well as tenant application and screening. Does anyone have experience with this site is there a catch or might there be one in the future? I have no affiliation with any of these sites Thanks Rob

Post: Management Entity Structure

Robert LenfesteyPosted
  • Real Estate Investor
  • Cary, NC
  • Posts 27
  • Votes 3

I'm not trying to lie to tenants, but I am trying to build a scalable business that does not depend on one person (me) as the single point of failure.  Mike Butler used a management company in Landlording on Autopilot. It also seems more professional and legitimate for tenants to interact with an entity rather than a person. @Rob Beland

@Steve VaughanWhy did you choose an S-corp over an LLC? Do you own your properties in the same entity? My accountant said that I would need to set up a property management agreement between the entity and myself and pay the entity a standard amount for management. My accountant is concerned that I will be generating active income in the property management entity which will be taxed at a higher rate and not offset by passive losses generated by property I own personally or in another LLC.

Post: Management Entity Structure

Robert LenfesteyPosted
  • Real Estate Investor
  • Cary, NC
  • Posts 27
  • Votes 3

What is the best entity for property management? This seems like a simple question, but behind it lies the structure for your entire business and strategy for investing. I am a buy and hold investor who strives to be as passive as possible. I self-manage but I would like to remove my personal name, address and bank account from the rent payment and tenant call process. I have created an LLC that I plan to use as the management entity that has its own phone number and email address for tenants to call for service. I plan to have tenants mail rent directly to the bank with the LLC's bank account information on the check for direct deposit. What are others' strategies.

Thanks for your input.

#AskBP

Post: Tenants Mailing Rent Checks Directly to Bank

Robert LenfesteyPosted
  • Real Estate Investor
  • Cary, NC
  • Posts 27
  • Votes 3

Hi, I currently have tenants mail rent checks to me and then I deposit them.  This allows me to know who pays rent and who is late.  I would like to remove myself from the rent deposit workflow. I am planning to allow tenants to mail rent checks directly to the bank with my account number.  This works, but I have no way to see who the remitter is so I can't tell who has paid rent and who hasn't. How do people receive rent, in a low/no cost automated fashion. I would like to be able to have tenants mail the checks to the bank and check the bank online to see who has paid.  I was disappointed to see Williampaid is no longer processing payments. Thanks for your input.

I currently own several rental properties which I self manage. I need to renew the lease on one. I am currently taking the North Carolina Real estate licensing course. The text states that NCBA forms are available from selected printers. Is anyone aware of where I can get these forms? Thanks R T