All Forum Posts by: Samuel Coronado

 You can refinance mobile home parks? I have one that needs to be done. 

Hi, Kerry. I would love to meet you when you come out some time. I live around Huntsville, the epicenter of northern Alabama. The Shoals is a great place to settle down and take life slow. Appreciation kind of lags compared to other places further east in northern Alabama. Rents are generally low there as well, but definitely stable. The area has attracted a lot of new young professionals with their work from home marketing that gives $10,000 to qualified families to help them establish themselves in the area. So check that out! I'm not sure if the program is still going on, but has definitely revitalized a lot of the area when it was once destined to follow the way of other older cities that are aging out of existence both in terms of people and property. 

I personally target Lauderdale, Limestone, Morgan, and Madison Counties. I have property in three out of four of those counties including one SFH in Madison, one SFH in Limestone on 20 acres that's being developed to a MHP slowly, and one existing small MHP in Morgan County.

A lot of big developments are happening here and this is the fastest growing places in Alabama. It has eclipsed all other cities in Alabama. Much of it based on defense spending that will likely increase as assets are moved from Colorado to Alabama to include the Space Command HQ. There's also a good amount of manufacturing hubs here. Labor is much cheaper than other parts of the US. A young population plus a growing industry makes for good long term investments, but unless you are really scaling the cashflow can be hit or miss. 

There's a few opportunities to buy quads, tris, and duplexes. Some can actually be pretty cheap. I've also seen a lot of BRRRR opportunities and house hacking opportunities in the Shoals area. Less so in Lauderdale County because there is not a lot of multifamily I can see there, but definitely in the "quad-cities" area.

I have recommendations for lenders and agents in the area that can help your journey as well. They will have better recommendations for any title companies or lawyers there. I haven't actually closed a deal that far west or else I would be able to give more insight. 

Nita Cook is a great property manager in the area for short term and long term rentals. Her husband is also a GC who can help build additional units as needed if you get something that can fit an ADU. Getting a house with over an acre of land isn't too hard for a good price out there.

I did throw out a general offer just to try. The offer was enough where I would have a decent margin for when things go wrong, but it was rejected. I offered $100k cash sale or a $150,000 bank sale. Both were rejected. He's going to try posting with a real estate agent for 90 days and see how that goes. 

 There's two 1500 gallon tanks. The county the property is located in requires 250 gallons of capacity for every bedroom, so 2x 2 bedrooms would have to be on a 1000 gallon tank. As far as I can tell, this may be over capacity and is also a huge red flag. 

I have another one I'd like to discuss. This is 5 mobile homes and one building being remodeled as a storage unit. 4 park owned homes and 1 tenant owned home. The POHs are $800 a month and the TOH is $300/month. Gross income right now is 2700. When renovations are done (the studio and one of the POHs), gross income will be 4000/month (500 for studio, 300 TOH, 800x4 for the POHs). The property is located in a prime growing area in northern Alabama. It's similar to another park I've done well with the last year. Septic, nonpermanent foundations. The seller has considered seller financing with 20% since this is a paid off property. Wondering what the best entry point would be. They originally wanted 360k, but the mortgage would have the property running negative for the foreseeable future until all renovations are done, which I won't do. 

 Sell to me if you want to sell the next haha. I love that class of real estate. The easiest of all the thing I've been involved in. We turned around a couple of parks. Getting rid of pitbulls, breaking up illegal activity, evicting nonpaying tenants, renovating to the studs so we can get higher rents. It's all a part of the game. 

This is a great story. I wish we could have had a talk before you pulled the trigger on this one. If you are looking for cashflow, I have a good lock on some of these places around Huntsville. I am a mainly cashflow person. 

 Either one. The builders in Huntsville don't mind. haha. 

 Would love to see some of those listings.

Quote from @Roger D Jones:

Quote from @Fred Scott:

@Roger D Jones:  Any insights on why the North Carolina purchase in Fund IV makes you nervous?

They paid 3.7 million for this property at 29% occupancy.  Park has experienced a mass exodus over the last 20 years with no explanation why.  Their plan is to raise rents (on the poor remaining souls, improve infrastructure and exert some sweat equity.  How are they going to fill the park?  "Leverage infill opportunities"... Typical PE investor double speak.

 That's insane~