All Forum Posts by: William Walker

I don't think you're coming off as cut throat or cheap by presenting the areas of the house that decrease the house value to make a case for your numbers.  I would also bring up that the house didn't sell at 270k.  Let the seller know the price you're willing to pay and how you came to that price.  And then let them know that if they want to list it to sell at 315k you're fine with them listing it at that.  First, they won't want to do that, second it will sit and they will come back to you.

I get 50% of all late fees.  You need a new PM or renegotiate your contract with your current PM.  Your PM has no incentive to place tenants who pay on time at this point.  Lets be real, your PM isn't chasing down this tenant, calling, sending letters, anything.  They sit on their butts and collect the extra money at your inconvenience.

@Marci Stein

No, no, he's got it all figured out.  Didn't you read, he watched a youtube video!  He's set.  His plan?  Well, why are you questioning him?!?!  He's not going to explain his plan, but trust him, it's a great one!  His millionaire uncle is going to finance 5 properties a year cash flow $420 dollars a month after repairs etc.  (no need to calculate roof repair, his houses won't need them).  And no need to calculate a mortgage payment into the numbers, the properties are given to him!  To quote him best "Amazing right?"  He's not worried about taking advice from people with years of experience and hundreds of transactions under their belt, and if worse comes to worse, he can always type things in all caps to get his point across!

@Anthony Micklus To play devils advocate what I have to lose would be 20k plus whatever that money could be doing somewhere else.  Plus it could turn into a money pit, but I kinda doubt it as I would just take it down if it got too bad.  I'll look more into partnering with a manufactured home dealer, thanks for the input on that avenue. 

@Patti Robertson

Yes it is a buildable lot, the land is worth between 5-10k. 

The current owner is agreeable to 19k and I'm going to have an inspection done on Wednesday. Considering it already has a tenant and rent is $540 a month, the 19k would be recovered in less than 4 years and that's with factoring $100 a month towards Capex and repairs (combined). The numbers all line up to me, I'd like to hear from some other people who rent out mobile homes.

@Chinmay J. Did you really just say it's her fault for getting scammed????? Yes she could have done some things to decrease her risk, but at the end of the day it's the two scum bags that took advantage of her who are to blame. 

@Sylvia Pomazak Sorry to hear this happened to you.

I initially had started to type earlier about how you should voice your complaints with them and see how they respond, but my gut (and I think yours) is saying find somebody else.  That's great that you can get out without much of a loss, I say cut your ties while you can.

Get a new PM.  How much will it cost you to break your contract with the current PM?  Tell them you're getting a second bid on the work and when it's significantly lower let them know.

My tenants

I'm looking to purchase a mobile home and need some advice on the numbers and costs associated with mobile homes.  I've never lived in a mobile home so I'm not familiar with the different problems that arise compared to a house. 

List price is 25k but negotiable.  I'm hoping to get in around 20-21k.

Home is on .26 acres that comes with the mobile home.  It's a 1987 2 bed 1 bath.

Rented at $540 a month to a tenant who has been in place since 2013, on section 8.

Yearly taxes are $280.

It's got central heat/air, underpinned, front deck, on city water but there is a well on site.  All appliances stay with home

Tenant pays all utilities.  No pets or smoking.

He has a security of deposit of $500 that would transfer to me.

Home was updated in 2012 with new floors including sub flooring.  New paint, vanity, windows, and a "coat of seal" on the roof. 

One big concern is that the tenant was on a yearly lease but it has expired and the current homeowner never had her sign another (his first and only investment property, he is selling due to medical condition).  Current owner says she would be fine with signing another lease and wants to stay.  I was thinking of putting her on a month to month.

I would manage the property myself, and I was thinking of looking at it with $50/month CapEx, $50/month vacancy, $50/month repairs. That eats $150 of the $540. I'm paying cash. If the purchase price is 21k, the home would be paid off in 4.5 years while still putting away the $150 a month towards expenses. I guess I don't really have to set aside the $50 towards vacancy because I won't have a mortgage, so I'm not going to be putting that money to the side and then paying myself a set amount a month to make up for no rent.

Please tell me your thoughts about the purchase, any big expenses that I need to inquire about.  Thanks for any help BP!