All Forum Posts by: Shawn C Steider

I have a chance to buy this trailer park with owner financing for 185k with a 17.3% down payment (32k) at a 6% interest rate amortized over 15 year term with a 5 year balloon payment. Right now it is at 40% occupancy(19 out of 50 filled paying rent, plus free lot to the manager). Including the debt service, management costs, sewer plant/well tests, trash, electric, and taxes, I am about breaking even. I feel like this could be a great deal but the present owner is warning me that I might be running at a loss and he doesn't want the park back because its his fathers' who is 93 years old and just recently put into a Home. Am I forgetting any expenses? Does anyone have any experience with trailer parks That I could talk to? I own 5 rental units right now (a 4 unit apartment building + 1 sfh) and this trailer park is 50 pads with 19 of them filled. Lot rent is $245 per month just raised this year from $225. There is also one trailer that the park owns and rents out at $465 per month. The managers mow all the lawns, maintenance and do the daily water testing. 

I work at a chemical facility and make decent money. It's around like $35/hr, which can become like $80,000-100,000 when working overtime. This last summer I got hurt at work and was looking around for a back up career so I've recently been studying to become an MLO and am about ready to schedule the test. But now that I'm back to work I'm pretty nervous about trying to pursue this new career since I have a family to support and bills to pay. I am a capable person and think I could eventually make as much money as I do now, but it might take a few years of getting contacts and what if the market turns in that time? Does anyone have any experience in this field or switching to a commission only job from a w4 job that makes 6 figures?

im not sure about texas but i think in PA its like a law that you have to put 25% down on all 4 unit mortgages. you can definitely still get another mortgage while you have your sfh in minnesota though, you'll probably have to put down 25%.  which in that case you wont have any pmi, but if you get a mortgage for more than 80% of the value of your home, you have to have pmi.  

My area is definitely not overpriced and I doubt that a recession would affect my values very much as my properties arent worth a whole lot in the first place. Im going for cash flow atm while I have a decent job in this area. Ive thought of trying to invest in higher priced areas someday hopefully. 

I just got a call today from a tenant that the hot water wasn't coming out at all in her apartment.  Turns out she was on vacation and hadn't used the water for 2 weeks and the pipes mildly froze. the problem fixed itself before I got out there and now I guess i'm just going to try to insulate her pipes between the basement and her apartment better.

Great Job! I'm newer to REI so I love reading these inspirational stories that people share. I just got my first mulit fam 4 unit in the summer of 2019 and hoping to buy 2-4 more this summer of 2020. Congrats on the grandchild also, thats very exciting! My wife and I are expecting a baby girl in 2 weeks!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $60,000
Cash invested: $15,000

This is a 4 unit that needed some work done to it. I had to put on a rubber roof on the flat spot on the roof to fix the leak and I completely renovated the unit it was leaking into. I plan to renovate each unit as they turn vacant as all of the units were occupied at the time of sale. I had to let one tenant go because the unit was not in good enough shape to rent from all of the water damage.

What made you interested in investing in this type of deal?

I have been interested in buy and hold rental investing ever since i started looking into real estate. The bigger pockets rental property investing book was really inspiring. I want to build up a portfolio that could support me and my family and build as much wealth as possible that I can someday pass down to my children.

How did you find this deal and how did you negotiate it?

I found this deal on the MLS. My wife is a RE agent for the last year and a half and I definitely take advantage of using her MLS search access. It was actually on the market for almost a year at a higher price. I had just bid on another one of the owners properties a month or so before and knew that he was motivated to sell. My offer was at 50kwhich is what he sold the other similar property for, and he came back at 60. the numbers worked to still recieve over 30% CoCROI so i agreed on 60k.

How did you finance this deal?

i financed as a conventional loan with 25% down. I had to repair the roof in order for the appraisal to go through.

How did you add value to the deal?

I fixed the roof with a brand new rubber roof that will last 50 years. I completely renovated one of the apartments and raised the rent $200. This summer I plan to replace the rest of the regular roof. I am going to put on new siding on the outside of the building, and Im going to get some landscaping done around the yard.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with my wife Aubrey Steider, who was great and i would definitely recommend her to anyone looking to buy or sell a property in Northwestern PA , specifically Crawford County. I also used Marci Brabender to help me find financing for such a cheap deal, no-one else wanted to work with me for a loan so small but Marci got me a 30 yr fixed rate!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $60,000
Cash invested: $15,000

4 units. Needs some TLC. completely renovating one apartment at a time.

What made you interested in investing in this type of deal?

I want to gain enough cash flow eventually to completely support myself and/or to build up my net worth.

How did you find this deal and how did you negotiate it?

MLS. My wife is a RE agent. I knew the owner just wanted rid of it so i gave a low offer and it was accepted.

How did you finance this deal?

conventional loan. Although it was hard to find a lender for the price point of this house.

How did you add value to the deal?

Put on a new roof. am fixing up each unit as the tenants move out. Rents were low in the first place so all rents are able to be raised.

What was the outcome?

can't wait to see.

Lessons learned? Challenges?

Do due diligence on the title, even if you hire a title company for that. The previous owner sold off acreage and did not disclose, and nobody realized until I asked for a copy of the deed at closing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Aubrey Steider, my wife, Is a newer agent but she is very professional and devoted to her job. Kash Mortgage was able to help me with financing the deal when no other lenders wanted such a small loan.

After many many nos, i have finally found a Yes and just put in an offer! thanks to all of you!

Is it just me or is it extremely rare to find a conventional loan for about $50,000? I have been going to all the banks in my area, and all of the online banks available to me through bigger pockets and so far, not one of them will extend me financing for a 50000 4-unit with 30% down. It is extremely frustrating that i could buy a car(depreciating asset) for the exact same amount of money, but because it is real estate, no one wants to have a loan that small. I am just starting into the real estate investing world, does anyone have any suggestions? if i was to get a hard money loan, would i be stuck in the same position not being able to find a Refi?