All Forum Posts by: Shawn P Kontrec

@Daniel Anshus, interesting. I would have thought there was a market and a little would have been possible. Thanks for your input!

@Rachel H.

Thanks for your response! That makes sense and I will definitely look into that.

@Daniel Anshus

I’ve mostly thought about flipping mobile homes as a way to get cash to then finance regular small multifamily. I figured that flipping an 80s or 90s mobile home would be not only quicker and easier to do than a regular property but it would also be great learning for any rehab I would have to do in other properties I eventually hold. My thought about flipping a mobile home is that it removes the uncertainty of finding an appropriate refinance option. Also the fact that it is a depreciating aspect wouldn’t affect me if I plan on flipping and selling it back quickly. Any follow-up thoughts I should be aware of that you can think of?

@Cordell Martin I appreciate the insight on some of the legality aspects of buying and selling mobile homes. Thank you for that added help!

Thank you, @Brenden Mitchum for that reply. I was thinking that flipping would be the best way to go for mobile homes, but wasn’t sure. I was thinking that flipping one or two mobile homes would provide some cash to put towards reserves for a house hack or something like that. Perhaps I’m missing something in the equation, but I was thinking that a mobile home would be easier to flip in a market like Minneapolis where prices are high and where flipping regular homes is very tough. Thanks again!

@Khizer Husain I appreciate your help, thanks! I will look into them.

Hi, I was wondering if buying mobile homes using hard money is possible. What are the limitations and differences when compared with regular home hard money financing? Additionally, can you eventually do a BRRRR refinance with a traditional mortgage? Or perhaps, is it better to simply flip a mobile home when using hard money?

Thanks for your answers! 

Hey guys - sorry for the few days delay. @Bruce Runn, @Daniel Anshus, @Evan Kraljic and @Tim Swierczek, I greatly value your help and input, so thank you!

I see my mistake as a beginner in only focusing on Cash and Cash return.  I appreciate the real scenarios you have given me in your responses - that helps paint a clearer and tangible example of what I am hoping to do. 

Few things I noted: 

- make my own deals using creativity and thought-process instead of hoping for turn-key cash flowing, good-on-paper deals

-there are still deals out there, no point in losing hope

Again, thanks for your replies.

@Bruce Runn Thank you for your reply. My understanding of CoC is the equivalent return one would get if they were to invest in any other market. For instance, if someone were to put a grand into the stock market and then, a year later, the investment is worth $1100, their CoC return equivalent would be 10%. I don't see the point in putting money into real estate of the return isn't at least on par with another market an investor could buy in.

Do you have any ways of finding deals, specifically in the Twin Cities these days or do you focus more on out-of-State buys given the high Minneapolis market lately?

Hey BiggerPockets!

My name is Shawn and I cannot wait to start buying rentals. BP has provided a ton of great resources and what I would call a good distraction from pointless college classes while I was finishing up my degree last year. Something I have been impressed with, is that the REI community is such a solidarity-focused environment even though folks are all focused on maximizing their own returns. I think that's super amazing and generous of everyone!

I hope to buy a small multifamily property and house hack within the next two years (hopefully on the sooner side) using an FHA loan. My question is geared towards current younger house hackers - are you finding 10-12% CoC ROI; 7-8% cap rate duplexes and triplexes in B neighborhoods? If so, would you mind sharing how you found such deals in today's Twin Cities hot market and in what sub-markets? Did you use some creative financing, FHA debt or standard mortgage debt service? I'll be honest, most duplexes I have looked at and ran the numbers on have done terribly, but then again I have only ran numbers on MLS-listed places.

Last question: are there still newbie REI meetups going on or are they virtual now? Would you mind informing me on some of those going on?

Thank you ever so much!

Shawn