All Forum Posts by: Tim Rainey

Well said, thanks Jack

I am seeing a trend here toward LOI.

Any specific things that yall like to see in your LOI's?

So I am getting close to hopefully making an offer on a mobile home park, my first.  Its the original owner, an older gentleman.

So assuming we come to terms, would the next step be an LOI or contacting a real estate attorney for a contract? I want to move quickly if and when we initiate this, so anything I am trying to have a plan in place and have anything ready that I can when the time comes.

Thanks,

Tim

Great points. 

I agree, the "waiting on tax return" line does nothing for me.

The seller is also an attorney, so I am struggling to understand why evictions havent happened?

So, does the current state of evictions make you less likely to want to acquire a new multifamily property at the moment until that is resolved? 

It gives me pause that this owner took over operations in September. He is based in another tertiary smaller town about 1.5 hours away. He has a lot of rental property there I am told, enough to employ property managers and handymen.

If he is that seasoned, why wouldnt he have already evicted to get his numbers up for sale? The broker denies its the CDC moratorium but rather they were giving them grace until income tax returns. 

This would be non Freddie/Fannie loan. 

That makes sense to lower the asking as if those are vacant for a year.

I havent had to go through the eviction process, how time consuming is it?

I am evaluating a complex in a tertiary market with 8 residents who are delinquent in rent ranging from 55 days to 104 days. Current owner said he took it over in September from his partner and blamed poor renter vetting and said they are waiting on their tax returns. I have doubts that they will ever catch up but that they just wanted to show 96% physical occupancy.

So I think that the only prudent way to evaluate the deal is to assume that I will have to evict 8 residents. 

What is current state of CDC eviction moratorium? Is it currently making it harder to evict in Texas tertiary markets? 

Thanks,

Tim

So I am going to look at a 29 unit apartment complex for sale. I would like to have a bigger one (50 -70 unit)but they are few and far between when I am located. 

I know that its not big enough to have a full time manager, and I live about 45 minutes away, but are there those here that would consider it?

It looks like it needs some rehab and better management. I was hoping that if it looks like a value add to do that and resell. 

One concern is that there are 8 1-1 units?

• I realize this thread is 9 months old, but I came across a similar MHP deal with a treatment plant and had concerns about the plant. I dont have income numbers yet, but wanted to see if the plant was a deal breaker at the start.

-40 current spots on 10 acres with room for at least 100 spots

-Water treatment plant in service 15 years.

-Plant capacity is 20,000 gallons per day. Averaging 8000 gal per day use now according to owner

-Current owner is certified to run plant and does so himself. Said he hired someone previously but they were incompetent

My questions are:

1. How long would a plant like this be expected to last?

2. Should it be expected to be replaced? If so what is replacement cost?

3. Assuming worst replacement scenario above, would you just consider replacement/repair a potential expense and subtract that amount from the asking price?

Thanks

So, I am glad that it is something that is done. Thanks