All Forum Posts by: Samuel Coronado

Hi Leslie, Did you move forward with RE Developer Training offered by Jerome Maldonado. I've been giving lots of thought buying a lot for build and sale of a SFR, and would like to touch base with like minded folks.

Thank you,

Shawn

Hi, Neel. What are you basing the assumptions on for that 1500/month mortgage? For disclosure, my current mortgage on an MHP is 1564 for just principal and interest. 15 year amort, 5/1 ARM, @10.3%. But that was earlier this year and with 6 older park owned homes.

For something like this, I would be trying to cap it around 200k max. Only base it on current rents like the others said. There's too many pieces of work trying to advertise value-adds at a price where the value was already added.

$2400 doesn't give you a lot of margin. 

-300 trash

-150 insurance

-100 taxes? (you can easily look this one up) 

-240 management fee (even if you manage it yourself, include the fee) 

-septic management every two years if it's not on public sewer

-any water if it's not submetered

-100 if the park supplies security lights

You're looking at closer to 40-50% expense ratio before the mortgage. Mortgages aren't included in CAP rates, but they are absolutely included in your own personal underwriting.

Other things to consider- is this on a well, septic, or have easements? What is the area like? Is there room for expansion? 

I would love to link up with you on this, especially if it's in north AL or southern TN. 

Some owners around here are looking to get acreage price PLUS the value add. I don't waste much time with them. 

Based on current rents, 200k would be the absolute highest with a better mark toward 150k based on location and conditions of the homes. Even though you're not owning them, they play a role in  how much you may be able to expand or charge. 

Floor for this area is about 250-300/month with no utilities.

It's the end of the year and I am considering investing in a rental property as a first-time owner, who already owns a primary home. However, I am also thinking about whether I should max out my 401k like I did this year. The pros and cons of both options are driving me crazy!