All Forum Posts by: Omar C.

If the numbers don't work as a 3 unit I would walk away or renegotiate.  You can always bring in an experienced contractor and find out what would it take to make it a legal unit. 

I agree with Richard, don't count the revenue and live in the illegal unit.  Chicago is pro tenant and you don't want to raise any red flags with city hall.  

Sounds interesting, can't make it this time but please PM when the next event will happen.

Not sure how the taxes work, but mobile homes placed on foundations are sometimes treated like stick built homes with regards to property taxes.

I'm in a similar situation, I need to bring in lots of homes and I'm torn between the old single wides vs the smaller double wides (transported as a single wide).   I'm leaning towards the newer smaller doubles hoping that this will give my community more curb appeal vs the many other parks nearby.  

Strictly cash flow, I think short term you will always be better off with the older single wides.

I always find it helpful when I (the purchaser) meet the appraiser and show him comps and get a feel for what they think the value is.  Every appraiser already has a price in mind based on the comps they pulled.  Depending on what I'm trying to do I can normally sway them for an increase or decrease in valuation.  If you don't like the first appraisal you can always ask for another one, you will be responsible for the costs but it's worth a try before losing out on the deal.

In Chicago what you can charge is restricted.  I go by the city guidelines:

1. If you're late in paying rent, your landlord can charge you $10, plus 5% on any amount over a $500 monthly rent. That means, you'd pay just $10 extra if your rent is $400 per month. If you pay $800 per month, the late fee would be $10 plus 5% of $300 ($15), or $25 total. 

Are you sure the area can support a coffee shop, there used to be a pretty good one across from the court house that also sold trinkets that went out of business a few years ago.  Also, there isn't a lot of foot traffic in the area.  You might be better off trying to rent the area out to the city/county.

@John Fedro Thanks John for the clarification.  I sent you a PM, I'm hoping you can help me with locating investors to help fill my park.  I might still try the RVs but just rent them out and hope for the best since my return will fairly quick.

The only issue I see with buy and hold is that RVs are more fragile than mobile homes, it might be better to do owner financing since it probably falls under recreational vehicle or something that is outside of Dodd/Frank.  That way you are not responsible for the maintenance.