All Forum Posts by: Stryker Brown

Hey Folks,

I'm under contract and in DD on a 31-unit apartment complex in Elizabethtown, KY. We are shooting for a short-term hold (less that 18 months) and want a second opinion from someone who is an expert in this asset class and region. In exchange for the likelihood of listing the property, we would like an analysis done on what your would think the property will be valued at and who the buyer pool will be. We own around $15m we understand the asset but want to have our assumptions challenged by someone who spends their time in the listing/selling space.

Thank you,

Stryker

My contractor brought me a deal that we are looking to wholetail (a first for me). We are putting under contract for $200,000 and will list for $250,000 to $260,000 with an agent. I'm assuming we are going to lock up with a typical psa/wholesaling contract and then complete a new purchase agreement with the end buyer and end with a double close. I have concerns on how smoothly this will go with a buyer that likely wont be paying cash. Have any of you had experience with this or have any advice on the most efficient way to structure this deal?

What's a reasonable number to expect/project on closing costs for a rental property. I am buying a duplex for $110,000 and the mortgage broker just quoted me $8,500 in total closing costs. This seems quite high to me... Am I off base in thinking that?

I have been mostly focused on analyzing MHP's in the recent months but took a flyer and called about an 8-unit apartment building today. Turns out the owner was open to selling and threw out a number that didn't sound to bad. I'm not as familiar with the costs associated with owning and managing an apartment building so I would appreciate any advice in coming up with an accurate NOI.

Asking Price: $500,000

Units: 8 (2 bed/1.5 bath in a really good area of a mid sized town)

Rent Rates: $800/unit

I have not been inside any units so I dont know what state is it in but the outside is brick and looks good. Parking is adequate. Rental demand is high in this market but I'm not 100% sure on what they could be raised to or if they could be.

I ran an analysis that yielded roughly $1,800 in net cash flow each month and 20% COC return which obviously sound good but I'm sure there are things i'm not accounting for correctly.

Any advice would be appreciated.

I am currently underwriting a deal I’m looking at and need some guidance on what specific items/work is going to cost. Obviously this is different everywhere but rough estimates and ranges are welcome. It’s a 20+ unit park in Georgia and needs some love but is in a great market and has good infrastructure. (City water/sewer/electric) Any insight on some costs to project would be appreciated

Below is the scope of work:

- I need to bring in 12 homes and plan to do so over the next 2 years (10k per home installed and rehabbed) I think I can come in lower than this but I’m being conservative.

- run a top coat of asphalt over the existing road. Not sure if a seal coat would work or not.

- signage and landscaping

- tree removal (2-3 days work)

- install gravel driveways for pads

- install 4-5 power/electrical hookups

- 21 submeters for the water but would be spread out over time with the homes

Any other costs I may be missing?

I wonder how much there resistance to change and improvement is associated to the worry that rent raises will soon follow. Perhaps a dialogue of what you are planning and what your expectations are will quell the worry and disobeying of park rules on skirting and such.

@Jack Martin great advice! Thank you, Jack. I like the park without the addition of the RV lots but after doing some market research and realization there is basically 0 vacancy and lot rents north of $450 it may be worth a look.

@Frank Rolfe thank you frank! I will look into that. Admittedly I was optimistic that they wouldn’t cost that much but I guess it is what it is. Also, thank you for all of the great content you have put out. It has been extremely helpful and inspiring. I have used much of your valuation and due diligence advice to get to this point.

I have a 21 unit MHP under contract in an area of Georgia that is in HIGH demand for contract labor right now and I am considering adding RV lots to tap into this crowd.

There’s almost no vacancy in the surrounding parks that are pricing monthly rents between $400 and $650.

I would be able to add roughly 7 lots in the I initial wave and 20 in the second round if it goes well.

What I don’t know is what the process is like to add these lots from a permitting standpoint and also how much it is likely to cost per lot?

Could anyone with RV Park experience offer some guidance and direction? Thank you

@Daniel Ryu what are you're thoughts on buying a park with 60% vacancy. On one hand, i see it as a huge inconvenience that requires a large investment to fill (roughly $10k/home is what I'm budgeting so $130kish). On the other hand, if they are all done right and RTO'd in a manner that covers my cost within 12 months like @johnfedro suggests, they have a chance to be a good source of additional cash flow until they are paid off.