All Forum Posts by: Seth Parmelee

@Jay Hinrichs if I understand it right I think rents are rising to the point to where they are becoming unaffordable. Or maybe it’s because rent isn’t rising high enough commensurate with housing costs? Something like that. I do know that it seems to be getting to he point where many people are being priced out of either market.

@Alex Bekeza I think the biggest issue with lending is poh. A lot of parks lately have a high ratio of poh to tenant owned homes. This scares away lenders.

@Jay Hinrichs here in N.C. our realtors commission wil revoke or suspend our licenses for year or so for that.

@Jay Hinrichs I’m with you on this. I don’t see ya in a bubble, which my understanding is an externally forced market inflation. The market we are in is caused by high demand low supply plus some other things like low rates and such. Rates are starting to raise which may start to slow buyers thus lowering demand.... maybe. Unless something crazy happens I don’t see a crash because we are low inventory of foreclosures and reo comparatively and job markets are generally in good condition. Though I’m not a market expert so take my words for what they just my opinion.

@Wang Xiong when figuring out value of parks only use lot rentals to determine NOI. Lots x let rental x 12 x (expense ratio). If you figure the expense ratio is 40% then multiply by inverse .6. Once you get calc NOI divide by the cap rate you want to buy at to determine purchase price.

@Mario Lanza hey I’m an agent outside of Wilmington. There are definitely places to buy that currently produce a decent cap for rentals outside of the marine bases. I don’t really see rental returns going down in the future for those homes because of the area.

@Dan Wells I would say you could have a case for willful misrepresentation. Talk to an attorney as well as make a complaint to that states real estate commission.

The markets in N.C. for Multifamily producing good cap rates are Greenville, Greensboro, and Fayetteville

Hey I am a realtor outside of wilmington. I've looked at condos for a client before and while the weekly rentals are correct.... have you inquired about all the fees? You will be nickel and dimed to death, or at least that has been my experience when looking. For instance, you have insurance (wind/hail, flood, and liability), taxes, HOA, PM fee, turn over fee, utilities etc. Average HOA fee I have seen is roughly 5-6k a year. Then you add in the fact that that 1200 a week is generally only for the peak season (three months) and then drops a bunch during offseason. Have you seen the financials for the property for multiple years to see all the fees as well as true occupancy?

@Joshua McFarlin no problem. Like someone said above parks can be great.... or the epitome of money pits. Haha you ever want to invest in N.C. let me know