All Forum Posts by: Sant S.

Hello & Happy New Year to All!

Greeting everyone and thank you for taking the time to read this posting.

I am new to the MHP asset class but absorbing the loads of information on biggerpockets.

I came across the below deal and think its very intriguing, but I believe I'm being to optimistic and looking at these figures with blinders on.

This park is in upstate NY known for Summer tourism.  Built in 1970.  There are 19 lots.  One of the 19 lots is a home that rents for $1200.  The other 18 mobile homes are TOH's with lot rents of $600 each.  This struck me right off the bat as high.  I searched lot rents in BP and came across the method of 2 BR apartment rentals in the area and lot rents should be roughly half those 2 BR apt figures.  I found lower end 2 BR apartments for $975 and upscale ones for $1600-1800.  BTW these apartments were 20 minutes from the MHP as no apartment complexes are right next or near by the MHP.

Expenses are advertised as ~$25k annual.

(RE Taxes 8K, Property insurance $1800, R&M $1500, Water & Septic $3500... plus a few other smaller expenses permits, legal...)

The septic is an obvious red flag to me.  I'll do a deeper dive if this gets to the DD phase.  

Pros & Cons of Septic???

Property is Municipal Water which I assume is a good thing.   

I understand I would be purchasing this investment for strictly cash flow and there is limited add value.  There isn't room to build more pads and even if there was, approvals are required.  

Can we expand on the downside risks?

As I said above I am looking at this with blinders on.... 

Mostly all TOH homes seems like a great position.

This deal is advertised at a 12 cap.  

Priced just around 975k  

Carlos,

I saw the listing for this property last night.  Looks like a solid deal.  Let us know how you make out.  

Francesco is correct. I invested in this area 2013 - 2016 and at this point the window has closed for finding MLS deals "where the numbers work". I've started to look outside Hudson County. Union City has MLS properties from time to time where the numbers show some cash flow, but UC is a speculative play because the rent control board has frozen rent increases (my understanding-you confirm this). So your betting on property appreciation as UC rent control has eliminated value add.

Hey Everyone,

Can any of you local Hudson County NJ RE investors recommend a eviction attorney?

One of the units in my 6 family is withholding rent this month over claims repairs have not been addressed, but the tenant at the same time is refusing access to the apartment unless they are home/present.  Getting their schedule to align with many different repairmen has caused the repair to get constantly rescheduled and/or repairman disengaging because of their headache.  

Now the tenant has stated they are withholding August until repair is complete (which got rescheduled again yesterday due to them not allowing access).

Try NJlenders they get these loans done quick and at great rates.

I don't know the Long Island Area.  I have a colleague who is look to start flipping in Nassau County/ Suffolk but no luck finding any wholesalers as of yet.

I invest in Jersey City.

I purchased in Weehawken and renovated a two family.  It was very challenging. Also, Weehawken prices have gone through the roof. It's hard to find cash flow at these prices.  I haven't explored buying distressed in Weehawken.

I find Jersey City a great town to invest. There are many pockets. JC Heights is getting pricey but there are deals out there. Getting affiliated with wholesalers in the area is the approach I recommend if you want to BRRR.

Greenville is probably the best bang for buck. The area is improving and the prices are reflecting that. There is cash flowing properties on the MLS. Best approach is get in touch with a good realtor who knows Greenville, check out properties, run the numbers, and make offers. Mortgage rates aren't staying at these levels much longer. Getting in before the end of year is your window to make best cash flow and COC returns.

Eugeen,

Sounds like to are heading down the right path to accomplish your goals.

Have you started to research the areas where you want to invest?

Hello all,

This forum has been a tremendous source of info for the past 4 years of my real estate career.  I'm seeking some help from my peers.

I purchased a 6 family in Dec of 2013.  

Fortunately I have had some minor upside in rental income and able to reduce expenses.  Cap rates have also improved in the area over the last few years.

I am desperately trying to do a cash out refi.  Talking to local commercial lenders I have had no success.  Valley National, Boiling Springs, & Provident National all have had their various reasons for not moving forward with the loan.

The financials of the property are pretty good. 

My NOI to the property is 47.5K using the aggressive appraisal approach.

(Including line items for Reserves, Management, & Miscellaneous; 4% of Gross for each item)

True NOI is around 51.5k

The area is trading around a 5.5-6 cap.

Seeking:

Market value of property around 800k, 75% LTV should put new loan at 600k

Current loan is about 335k.

Looking to cash out roughly 250k.

Want new loan to be 30 year amortization.  This will make the Debt service ratios work.  25 year Amort will be very tight.

Does anyone recommend any lenders I can contact to get this done?

I also have a condo in JC heights. Two Bedroom / One Bath off Palisade Ave. Price: 325k Getting $1800 in rent. Can get 2,000 - 2,200. Condo fees are 330 / month Taxes are $6600 1020 Sq Ft. NYC buses at your doorstep. Surrounding area is on fire. There is no inventory. Can email pictures / PM me if interested.

I own a 4 family in Greenville off Garfield Ave near the border of Bayonne. Rent roll is 3900 / month 3 section 8 tenants. Taxes are 6650 / year. Generates about $1200 cash flow after my mortgage is paid. I'm considering selling it for 550k. PM me if interested.