All Forum Posts by: Stefani Gillenwater

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $103,000
Cash invested: $15,000

First BRRRR attempt. Purchased for 86K (includes purchase and rehab), refinanced for 103K, recevied ~1.5K back from unfinished rehab work.

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

Recapture CAPITAL

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

Through STOREHOUSE 3:10

How did you finance this deal?

Conventional Financing.

How did you add value to the deal?

Rehab of property.

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

Yes, contact us for more information.

Thank you for responding, Alina. We did consider asking a tenant, but at this time there is no tenant that we would trust. Also, with Indiana, I believe a PM has to be a licensed real estate agent so we are trying to be cautious with that. We reached out to a local real estate agent and received a recommendation that we hope will work out!

As to the finances-we did just complete our first BRRR attempt yesterday. While we did not end up getting all of our money back, we did get most (gotta keep trying!). That will help us continue with the MHC rehab for now!

Thanks again for the tips!

We got started in Real Estate Investing about a year ago when we realized that my husband had six years until he was retirement eligible. We started off with 2 SFR's that are doing well thanks to our friends at STOREHOUSE 3:10, but decided that in order to meet our ultimate goal we needed to scale up sooner rather later. We are now approximately 2.5 months into our first multifamily investment. We purchased a Manufactured Housing/Mobile Home Park in Indiana. It is in rough shape and needs a lot of TLC and organization. Here are the particulars:

Purchase Price: 220K

Down Payment: 30K

Seller Financing:  6% Interest Only, no payments first 6 months, 2 year term

21 existing LOTS and 1 SFH

7 Vacant Lots/3 TOH's/11 POH's 

City Water/City Sewer

Value Add Strategy: Install Submeters and bill back for water/sewer, improve the curb appeal through landscaping, and road/gravel driveway repair, renovate vacant trailers and sell or Lease w/Option, Renovate SFH and increase rent, infill used trailers to fill vacant lots. Goal is to get occupancy to 80% in order to support a refinance.

Current Struggles: Initial contractor has not performed to our liking. Currently trying to find a way to off ramp contractor and find a replacement. Finding capital to bring in new homes and renovate the SFH (current condition is worse than we originally budgeted for). Enforcing new park rules and regulations which is partly due to not having a property manager yet, which is a struggle itself. In the process of evicting a tenant (inherited from the previous owner).

We appreciate any comments or feedback.  We will keep everyone posted along the way.

My husband and I are hoping the BP crew can provide some advice.  We are in negotiations with a Broker regarding a MHP purchase and discovered that there is one parcel that is owned outright by a third party and will not be included in the purchase.  You can see from the graphic below where it is located in the park.  We do not have any additional information on covenants or restrictions yet.  Does anyone have any recommendations/advice on how this situation would affect park operations and more importantly resell down the road?  Thank you.

@Neil Schoepp, thank you. Do you use NADA for value? When you mention newer homes what do you consider newer? We just made an offer on a 37 pad park with 7 POH's and our initial offer was 11% CAP rate on the NOI and shell value for the homes which range from 91-01'.

@Neil Schoepp, when you value the park owned homes how do you assess the value? Shell value or do you treat each one like a SFR and assess its value that way?

@Craig Sloan if your deal falls through and are still interested in selling please shoot me the details.  My husband and I are looking to invest in a MHP soon.  

I agree with Rudy,  you can mitigate the risk with a significant amount of equity in the deal through a larger down payment.  

...

Brian,

Can you email additional details and OM to my husband at [email protected]? 

Thank you!!

can you forward any additional details to my husband at [email protected]?

Thank you!!