All Forum Posts by: Ryan Taylor

I have a property that I'm struggling to price for sale.  Currently it has a duplex with long-term renters, and an above-garage dwelling unit that was converted from long-term rental into a successfully operating AirBnB.  Pricing this property by square foot negates the entire income of the AirBnB, and converting it to a long-term would reduce the income and further reduce its value.

My concern is that listing it on the MLS with an 'accurate' / higher valuation (based somewhat on CAP rate for the AirBnB) would not appraise well when compared to other triplexes that are all long-term rentals in the area.

Does anyone have experience getting accurate valuations for these types of mixed properties?

@Mario Dattilo thank you so much! It is very helpful. I’m thinking this park just has too many empty lots to have to fill right now to make it worth it, especially with how difficult supplying everything is right now. I appreciate the input!

Hello! My wife and I have several SFR and small MF long term rentals, but are looking at getting into MHPs. I found a potential deal on a park near Chattanooga. It is a 33 Lot park on 9 acres. 4 lots rented at $250. 1 home about to be rented for $675 per month. 7 homes on site that need work to rent out (6-12k per home). Rest are empty lots ready for new homes. All sites have individually metered water meters. Park is on septic tanks.

The current owners recently bought the park less than 6 months ago (stated they got a good deal for it) but reported they have other larger parks they are focused on and just don't have the time to invest in this one, which is why so many lots have remained vacant and there is very little cash flow right now.

It is listed at $375K and there is a potential option for owner financing. I see that there is some decent potential in the park given the location and room to improve, but I know with so many empty lots, it is going to take a lot of work and capital to get this thing going. I live out of state so will be doing this remotely if it makes any difference. Does this sound like a good opportunity or too much of a headache? Thanks in advance!

@Alicia Prokos wow, that’s awesome! I’m so intrigued by this idea. I’ve seen several vacant land listings in my area and always thought it would be great to invest in them somehow. I love the idea of developing a subdivision with lots to sell individually. Congrats!

Thanks for the responses! Very interesting to see the differences around the country. As far as I know, a lot of property owners here in Louisiana DO own mineral rights for their properties, except for the newer developments. In these cases, the developer maintains the mineral rights. 

I’m not at all interested in the royalties - my concern is whether resale value and interest is affected by the property when mineral rights are no longer a part of the sale.

Hello! So my wife and I are buy and hold investors in Shreveport, LA. We just recently put offers in on 2 different houses within the last 2 weeks. On both offers, the sellers countered saying that they would accept the purchase price, but would not give up the mineral rights. One of these houses was a single family home on 1.3 acres. There is active drilling within a mile of the house. I am unsure if the seller was already receiving any royalties, but he would not back down on maintaining the rights, so we never came to a deal. 

The second deal was a town home on very little land near the lake. The seller again agreed to our purchase price offer, but refused to give up mineral rights, so rejected us after we said it was non-negotiable. 

It was never made clear that the mineral rights were not included in the sale until after we had made our offers and were denied when we said we wanted the all rights transferred. I have read that there can be negative effects for future resale if a property and the mineral rights become disassociated. I am not concerned about the actual monetary amount of the royalties, but losing control of a property I am trying to own does not sound like the smart move...How often have you guys seen this happen? Is it common for sellers to refuse to give up mineral rights when selling a property?

@Brian Watts congrats! I am in Shreveport and am investing in very similar buy and hold properties. How are you finding your properties--MLS or off-market? We have 2 rentals in Shreveport and are currently looking for another one.

Sorry for the delayed response @Jordan D Johnson, its in the South Highlands area near St Vincent Mall

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000
Cash invested: $30,000

3/2 with 2 unheated bonus rooms attached, turned into a 4-2 with the second unheated bonus room turned into a master bathroom.

What made you interested in investing in this type of deal?

One of the cheapest homes on the black, well under market value. With renovations, should be valued near $150K and should pull in higher quality tenants / good cashflow.

How did you find this deal and how did you negotiate it?

Driving for dollars, saw the sign out front. Contacted the sellers agent who was motivated to sell along with the seller.

How did you finance this deal?

25% cash down at closing, with a loan @ 4.5%

How did you add value to the deal?

Remodeled the interior, turned the bonuses into heated/air-conditioned bedroom and master bathroom.

What was the outcome?

In progress.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Greg Tripp - Home Inspector, Bossier City, LA