All Forum Posts by: Siye Baker

HI Jason, Here's how I'd offer on your deal. Ignore all empty spaces and acreage. Only offer on paying pads. Water/sewer included is bad. Renters should pay not the park. Parked owned homes are bad too. Occupants should own the homes (and maintenance) and park just charge lot rent.

Find the prevailing lot rent for this area. I'll assume $200 you substitute the real value.

7 paying lots x $200 lot rent x 12 months x 50% expense ratio since park pays utilities = $8400 NOI per year. At 10% cap rate, the offering price is: $84k

As is typical the park owner is way over valuing park owned home rent!!!!! Park paying utilities is just nutz. Poor management.

You didn't mention if septic for sewer or well for water. VS city for both. If well water drop the expense ratio below 50% maybe by alot.

Wells have been taged by State enviromental depts to shut down or do crazy daily testing and alot more expense for chlorinators etc. I wouldn't buy a park with a well certainly not for your first park.

Ah I see you're in FL. Yes FL's Enviro Dept is cracking down on parks with wells big time. If this park is on a well, he may be dumping his problem to a dumb buyer. Call other parks.

Take a boot camp: mobilehomeuniversity.com

well said! but dont forget the value of the 7 mobile homes. only pay 75% of what they would fetch immediately. So that could be another 30-50k total. If it is not all city, I would probably walk, as there really arent enough units to shoulder the ongoing maintenance costs. The prices in FL are nucking futs, how are they in GA?

Sebastian

0 Votes

@Shanai Inns

great advice thus far. I would agree that an LLC is overkill imho for the following reasons:

-if you are a single managing member, there is real concern with your LLC being seen as an "alter ego" (since you have complete control over the company's actions). In the event you are successfully sued, this could pierce the veil of protection. I will be employing an attorney licensed in RE, an attorney for asset protection, and an accountant who is also an investor.

-I was denied a line of credit on the account of the property I listed as collateral was in my LLC's name. I will be moving the rentals in my name, and getting the necessary insurance policy. This combined with ethical business practices, people skills and proper selection of tenants will be my best defense in the litigious society. remember that 15M lawsuits occur each yr in US..that is ~41,000/day!

I made the mistake of getting caught up in the LLC fad, and am now in the process of undoing what I had unnecessarily done.

Multifamily is a great idea around here, quads are hard to come by, so make sure that you foster a great relationship with a few realtors(let me know if you need referalls). Make sure that you evaluate the readily available substitutes which will be competing with your unit(s) and will affect your vacancy rate(s) accordingly. You can find some 2/2 townhomes all day long for $30K, however half of them are all located in the same neighborhood. Purchasing any of these would be a painfully expensive lesson in RE. The name of the game in this town is affordable housing(read affordable AND safe) with deferred maintenance budgeted for. If you are not familiar with construction/rehabbing, then make sure you find someone to properly evaluate the property. Make sure this person does not have conflicting interest:

1) contractors who will earn business by fixing what they find wrong

2) an inspector/realtor collusion, where the inspector will skew the report to push for a close. The realtor gets the sale, and continues to feed the inspector business.

go in with exit strategies and contingencies for every scenario, and post the numbers on this forum for review( leave out the address) and you will find yourself in a great position when you purchase your first property. Hopefully this all makes sense, as this was written in a hurry

Sebastian

1 Vote

Originally posted by @Frank Coleman:

Hey everyone! I'm new to the real estate game, with a grand total of zero deals lol I've wanted to get into real estate for years and never made a move. I recently married the most beautiful woman ever and now my 'why' for wanting to do real estate is stronger than my fear. I went to a real estate seminar a little less than a month ago and I'm ready to get started. A trainer at the seminar recommended the BiggerPockets Podcast and I decided to listen to them all from the very beginning (I'm on ep 15). I've learned a lot so far, and look forward to learning a lot more and meeting a lot of new people on here.

Happy New Year and Happy Hunting!

Frank

Welcome aboard! You came to the right place. What seminar was it? Than Merrill was in town pretty recently if I am not mistaken. You are going to I recommend reading the bigger pockets ultimate guide to real estate investing. Happy New Year to you and your new bride!

Sebastian

1 Vote

welcome aboard! I sure you will find all the support and info here that you desire. Read and ask questions along the way.

Sebastian

0 Votes

Originally posted by @Nat C.:

Originally posted by @Siye Baker:

Originally posted by @Nat C.:

I am on the opposite side of the court with this question. I am asking as a tenant, not a landlord.

I rent an apartment and was on a 6 month lease that just expired. The landlord gave me a new 3 month lease to sign.

They appear to have used a standard residential tenancy lease but have added some funky clauses under additional terms. One of them states-

"Please note that a $250 fee for painting and $100 for cleaning will be automatically deducted from the deposit".

So in other words, even if you leave the apartment immaculately clean and there is no damage to paint on walls, they're still going to nab you for $350.

As a landlord with many properties, I would never put such a thing into a lease and it seems kind of illegal to me.

Does anyone know?

Did you have any opinion?

Looks like my post didn't go through. I'll try again :)

Opinion only Title VI 83.49 appears to have wording making this legal. Unethical, but legal. I remember seeing this"non refundable cleaning fee" start appearing in student housing leases around 2002 when I was college in tallahassee. It quickly caught on and now I would imagine it is the norm around here for student living. It was tendered prior to move in in addition to security deposit though. Since college students(around here) are notorious for destruction of property-this is not scrutinized. I cannot imagine an adult professional being charged this fee though. This smacks of gouging. The previous post might be your best bet, although you will more than likely only be bluffing the pm, as it looks like both parties have agreed on this non fee which will be backed out of security deposit. A quick call to a tenant lawyer will be your best bet. I am not sure if I can post the info here, but feel free to email me for a referral(he is ethical and did not charge for initial consultation). Never ever sign before satisfaction. We have all done it and it could have been much worse.

Sebastian

0 Votes

Originally posted by @Nat C.:

I am on the opposite side of the court with this question. I am asking as a tenant, not a landlord.

I rent an apartment and was on a 6 month lease that just expired. The landlord gave me a new 3 month lease to sign.

They appear to have used a standard residential tenancy lease but have added some funky clauses under additional terms. One of them states-

"Please note that a $250 fee for painting and $100 for cleaning will be automatically deducted from the deposit".

So in other words, even if you leave the apartment immaculately clean and there is no damage to paint on walls, they're still going to nab you for $350.

As a landlord with many properties, I would never put such a thing into a lease and it seems kind of illegal to me.

Does anyone know?

0 Votes

Originally posted by @Phanuel Meme:

Any help will be greatly apreciated.

One which will cashflow $200 monthly, and you still have savings to cover an unexpected replacement such as a.c. condenser. No war zone, fixer upper and/or distressed sale

0 Votes

Originally posted by @Kevin Page:

I would send the tenant on the lease a "Notice to Cure" telling them someone is living there that is not on the lease. The girlfriend would have to fill out an application like any other tenant. I would be concerned. The tenant is deceiving you. You need to get the girlfriend on the lease because if you ever need to evict you need all her information. By letting her stay you are accepting her as a tenant.

0 Votes

Originally posted by @Kelly Moore:

Great info everyone! Thanks for taking the time to respond. I think we are going to lean more towards a SFH for our first go-round. There are a bazillion apartment buildings in the area and I definitely don't want to compete with that (at least not while I am still getting my feet wet). Also, the idea of condo fees eating into my net income doesn't appeal to me either.

I own 2 condos and do not wish to purchase a 3rd. Sfh all the way imo

0 Votes

Originally posted by @Sebastian Naczas:

Thanks man! I'll look into it ...

Welcome my friend

0 Votes

All Forum Posts by: Siye Baker

Siye Baker has started 7 posts and replied 240 times.

Post: $129K 7unit MHP - too good to be true?

Post: Seeking Guidance

Post: Newbie in Tallahassee, FL

Post: Live in North Florida, New to real estate investing!

Post: Possible illegal terms in rental lease

Post: Possible illegal terms in rental lease

Post: I'm getting ready to buy houses and rent them. How do I pick a good location?

Post: Girlfriend of renter not on lease

Post: Potential College Student Rental - Condo or Single-Family?

Post: Cost of rehab for old brownstone