All Forum Posts by: Stefani Gillenwater

UPDATE!!!

Well I wish I had better news.  We have ran into a myriad of issues but continue to persevere.  Key issues have been:

1.  Mysterious Water Leak (estimate 200-300K Gallons a month):  Have had leak detection - NO LUCK, Sewer Camera Inspection (ensure water wasn't draining into sewer) - 95% confident it isnt, 2 Main Water Leaks repaired - stabilized water usage but still 200-300K gallons unaccounted for.  NEXT STEP:  City has agreed to change out the meter and see if that is the issue.  There are not visible indications of a leak anywhere.  If new meter doesn't work the local contractor has recommended installing 3-4 isolation valves to help narrow down potential area of concern.  Anyone have any experience in this or recommendations?

2.  2 Mobile Homes have had signficant structural damage of which 1 we can fix but the other will cost more than it is worth to fix.  Will be scrapping it.  

3.  New property manager/handyman has been great.  Charges a decent amount for handyman/rehab work but finally someone we can count on.

4. Previous contractor sub'd out furnace installs and just recently found out those furnaces are not HUD approved so in the process of switching them out.

5.  Multiple issues with tenants violating their leases but our NO PLAY NO PAY NO STAY policy is somewhat working.  Just challenging to be extremely strict when we do not have the occupancy at a point where it can absorb it.  

6.  Will be selling 1 Home on contract so that is good news.

7.  Had one home develop significant leaks (this highlighted the failure of our previous contractor to coat the roof adequately).  Problem now is the temps are to cold to fix so currently had to tarp the roof to prevent more damage.  Have plan for new handyman/contractor to coat roofs once over 40-50 degrees.  Anyone know of a product that can be applied in under 50 degree weather?

8. SFH was vacated (buying the Mobile Home on contract mentioned above). Home is in need of serious work.

All in all we are trucking along but some poor decisions on contractors, missed items on due diligence, and new issues have drained our rehab capital.  

Options are to:

1.  Keep pressing and continue to rehab, fix water issue, and increase occupancy with hopes to stabilize the park.

2.  Turn it back over to the previous owner who is carrying the note.  

We appreciate any and all comments/advice.

@Marijuana (MP) Vandyck

Our Broker's name is Adam McNeil with Wisely Commercial Realty.

He is an investor in MHP's as well, so he has some great insights and advice along with deals.

 Thank you for the encouragement and that is awesome your looking for a park.  If you need a broker let me know and I can share our broker's info.  What exactly are you looking for?  Will this be your first park?  How far are you from Monticello, IN?  

 No problem and thank you for following.  We should post an update here soon.  

 Charlene,

We have two SFR's in the Milwaukee area and they are doing well. Some small bumps here and there but overall we are hitting numbers like you have portrayed. If you want any additional POC's in that market let us know.

Thank you and good luck!!!

Bobby and Stefani

 James,

We own two SFR's in Milwaukee and have a handful of contacts if your interested in looking into that market at all.

Good Luck,

Bobby and Stefani

@Mason Crane

Mason,

Let us put together the latest numbers and send em to you. Is a private message ok?

@Mike M.

Of course private message us or we can set up a time to talk. We have and continue to learn a lot with this property.

@Sharlene Burch

Never to old in our opinion. However we do wish we had started earlier for sure. One thing I would recommend is be careful and develop your personal why/vision and stay true to that it will guide you in the how. Good luck!!!

UPDATE!!!!

Just wanted to give a quick update.

1. Hired a local property manager to assist with showing units, rules/regulation enforcement, etc... This by far has been a worthwhile investment. Huge peace of mind having someone you trust who can put eyes on almost daily.

2. Have increased occupancy from ~23% to ~35% in the last 2 months. One more renovated unit to get filled then should be breaking even.

3. Sub metering in progress this should be a huge impact to NOI. We did offer a discount to the existing tenants to help ease the burden of a new expense but not sure how long to keep the discount (we waived the 70.00 per lot fixed sewer fee).

4. Have run into some issues with the previous owner not disclosing some state inspection discrepancies that were not corrected. Bottom line the state wants us to correct them but we feel this could be a breach of contract. More to follow as that develops.

Thanks for the support everyone. Will report back in a few months with an update.