All Forum Posts by: Patrick H.

reason for selling?

I'm interested to hear opinions on the proposed flat tax scenario and eliminating all deductions would have on the entire real estate investing world.  I can't even imagine how it would work.  Mind boggling to think the elimination of depreciation and deductions for rental investments.  

Thoughts?

Sentiment during election years is always uneasy.

i just bought a 15 unit 5300 sqft value of 65000 and its 300 a year.   I get a good deal on insurance.  Thats replacement and liability which i recommend  Better just get a quote.

The facility came with a foundation already poured for a new building that they never built out because of occupancy.  I am putting up that 3600 sq ft building. Also bought a competitor out in the same town and will re brand the site to match my current business.

First thought is its too small.  Might work if its your first deal and you live right by it.

Update here, just signed closing docs on the 15 unit in the good location today.  Didn't think I was going to get a deal found and closed this year but came sliding in to home base just in time.  

Also got him to carry the note  at %4 fixed for 20 years with 18% down.  Also got him to sign a subordinate position so I can refi 25k out and get all my money out for a infinite return after I raise rents and improve the buildings.   It will be a great drive by location to complement the other facility.  

The other facility is at %97 occupied and we just raised rents 6 to 10%.  Construction on another building will start in February.     

Merry Christmas and Happy New Year!

Ok well that is big enough that I would want a manager close by.  His expenses sound lean, probably isn't figuring any management expense.  Defiantly sounds like the rents need raised if its that full (need to check comps)  Be sure to add in a vacancy factor, it won't always be this good of a self storage market in my opinion.  Also figure in a offsite management cost to pay your self for checking on it and overseeing operations.  

If he has a management software then great but if not id figure in some for something like Site Link Web based for around 150 a month.  It makes managing soo easy.

Just be very honest with your self on expenses.  

Best of luck!

I would figure in a manager salary in to your numbers for sure.  Then look at that number and ask your self do I want to spend the time driving and signing up tenants for that amount.  My guess is no.  Id find a retired person or some one to meet with the tenants.  3 hours is almost the same as 5 or 6 in my opinion.  

How big is the facility?  It it a gate code access?  Any storage buildings?

You can jump on the Mobile Home Park University forum  and search for key words.  Those guys would be the ones to ask.  Im getting great terms with a local bank. Fyi

From the brokers Ive talked to its around  1 Million borrowed.