All Forum Posts by: Scott Schaar

Lowe's commercial card 5% off every purchase to start . Buy all you can at a local resale shop . Toilets don't go bad just the inner workings of it like the flap and float . Toilets are clean and cost 15 bucks rebuild kit is 20 . Boom saved a 100 bucks . Also being able to do your own plumbing and basic electric are huge . I've found those are the two highest cost contractors . I hire out everything else .

I've got a MHP under contract, in the process of due diligence currently . It's coming with 22 lots, 4 are empty . I've read about different ways to fill them . From giving current home owners monetary insentive to move . Also buying a repo from a dealer, fix it up and sell on contract . Just curious what works best for others and your community ?

@Ben Steuart the standard I use . Is number of lots renting at this time . Not the number of lots total . Multiplied by lot rent per month . Then multiplied by 70 . This will very regionally though . But it's a good place to start . In your case seems very over priced even when you add in the stick built house . Unless the lot rents are way below market rents . Then you have no chance to bump rents up to justify the cost . One big thing I'll tell you . If you are considering investing in MHP then read the Due Diligence Manual from MHU . Self educate on this niche .

I own a 2016 F-250 out right . Bought it new and paid it off after first flip . I know what you’re thinking . I actually rent small equipment all the time to do sewer line repairs myself . Re grade drainage issues around houses . Recently tore down an old POS garage that came with a new property . After equipment costs and dumpsters I saved 3k compared to quotes I got . After another flip this year went a totally different route paid cash for a 2013Ford Fusion Hybrid Energi . Great car for my wife . The F-250 isn’t my daily driver though . I’ve got a company owned F-150 that they pay for all the gas in with no limitations on where I can drive . Needles to say the family is usually crammed in it .

@Trevor Cox this is the University of Evansville a very small school . The campus is maybe 3 full city blocks . It is almost a semi private University . Very expansive for it's size . My sister went there many moons ago . I knew it was pricey to live on campus . They have a very limited amount of dorms . The dorms they have are very pricey . I got on to the website and found what they charged in the dorms . Almost 200 a week for a room and that doesn't include meals . My housing is much cheaper plus they can have their cars . If they live on campus due to the lack of space . Not everyone can get a permit . Plus being such a small school the tenants are there for an education . Not much partying at the rent houses . I've even allowed the tenants to keep a table in the basement . That they may or may not play beer pong with . Super clean and always pay on time .

@Trevor Cox you can weigh out the pros and cons all day on any house . What student housing comes down to are returns and almost no vacancies . I just got started two years ago . I have 2 SFH just across the street from the university . I bought both right at 100k, anything costing less then that and your close to the slum lord type . At least in my area that is . One was a 3-2 with renters in it already . Renting at 1200 a month . That's 400 a bedroom . Yes you'll rent the entire house, but you'll price it per bedroom . It cash flowed 600 a month right off the bat . When those renters were getting close to the end of the lease . I had already did my research on codes . I installed a 4th bedroom up to code in the basement . Advertised it as a 4-2 and priced accordingly at 1600 filled it no problem . Do the math on cash flow .

My second one went even better . It was originally a 3-2 SFH but it had 3200sft . Which is a huge house . Converted the formal dining room into a bedroom . Did the same thing in the basement as the other house . I didn't have to, but I turned a huge closet that was an 8x8 into a full bath . Didn't want 5 people waiting on each other . If you keep them happy word of mouth is your advertisement. I ended up with a 5-3 that rented accordingly . Now one thing to keep in mind is parking . 5 cars is a lot for one house . I knocked down a small shed in the back yard and rocked it for parking . That's a win win, so no yard to mow and plenty of off street parking . It's a great investment if you find the right houses . Also if you do the comps to other houses renting to families in the same area . It's more like 250.00 dollars a bedroom on rent when renting to a family . Capex isn't any higher then it would be on if I were renting to a family . When I compare it to a SFH I have a family in right now .

You really should listen to BP podcast #140 The riches are in the niches . Bill Syrios will really explain this approach . He does it on big scale, but it can work on a small scale also .

@Charles Kao you would be correct . Probably different in every market . The plumbing contractors around here do it all . In our market if you don't own an excavator your just a handyman .

If your looking at purchasing . Then you are definitely doing your due diligence process . While your at the county building researching permits and surveys . That's a great place to research this also . Most counties and or city municipalities control the public water and sewer . Another resource would be . The local plumber you contact to check out your well and septic system . If he's a reputable plumber and knows the area . He can probably tell you off the top off his head the closest connection . That might be something he adds to the quote, you'll receive from him to repair any disfuctions in your current system ( which there will be ) . Ask him to make a secondary quote that would include hooking into the public water . By the way the price will probably blow your mind .

Just make offers, you never know what they'll say . What's the worse thing that happens . They say NO, I've heard lots of No . If they say yes just think how much money you saved, from that one yes .

I’m assuming you already have one full time job . Sounds like your trying to give yourself another by overthinking ownership of rentals . It’s meant to be passive income . You will wear yourself out over thinking all of this over one property . Remember, Keep it simple stupid (not trying to offend ) This scenario is more for when you get to 30 units and are going to retire early on them . When your W2 income stops is when you can really take advantage . Just some thing to ponder .