@Bruse UngerMortgage, Insurance, Utilities, Maintenance and Repairs, Taxes and Fees, Marketing, Accounting, Property Manager Fees, Tenant Turnover/Vacancies, Legal FeesYou can calculate some with a %, some with a per unit per year fee and others will just vary on the location, condition of property, size etc.

. $800.00 per month-600 sqft) possible AirBnB would produce more income per month.1150+800+800=2750Expenses: Taxes $150, Insurance $100, flood insurance: Vacancy $100, Repairs $100, Cap Ex $100, Mortgage $1667 Utilities: Renters responsibility, Total $2217 per month Cash Flow= $533 per monthCash on Cash return: need total repair costsPros:Great neighborhoodTurnkeys come with propertiesNo major issues to the home found in the last inspection.Found no liens or back taxesConcerns: 1.    

Where you run into problems is longer vacancy rates and repairs being a larger percentage of your gross rents (furnaces and roofs cost more or less the same on a 150k house and a 50k house) then if you were buying the same property in Marshall or Brookings 

The “key” elements of the transaction are explored first and usually, the most intensively.The buyer should provide the seller a comprehensive disclosure statement and include a term in the purchase agreement that obligates the seller to return the document within 5 days of acceptance.Professionals are hired to complete Phase 1, 2 & 3 reports that identify potential or existing environmental contamination and all other elements of elements that are difficult for the buyer to effectively evaluate.Financial Checklist3 years profit & loss statementsRent roll with space number, name of resident, move-in date, renter or owner occupied, number of occupants, monthly rent, additional charges, current balance due and any relevant notes about the residentList of capital expenditures for the last 3 years3 years of tax returns12 months of bank statementsCurrent accounts receivable statementList of park owned home including copies of “rent to own” or sales contractsCopy of all current insurance policies, binders and premiumsSpreadsheet detailing who pays all utilities including water, sewer, gas, electric, trash, cable, etc…For all utilities and charge backs, formulas, calculations and meter readings for the past 12 months3 years of utility billsProperty tax bills for the last 2-3 yearsCurrent staffing list including position, wages, job descriptionsCopies of any contracts that will transfer to buyer including laundry, trash, phone, equipment, etc…Dates and amounts of the last 3 rent increasesSigned rules and leases for each residentNames and contact information of professional service providers including lawyers, accountants, engineers, insurance brokers, inspectors, appraisers, realtors/brokers, etc…Physical ChecklistSpreadsheet for utilities that details age, composition, capacity, physical locations, etc…Any drawings or maps of the park and infrastructure including lot sizesSewer plant or septic system repair and maintenance recordsWater well tests and compliance recordsDisclosure from seller of current or recent problems with infrastructure including buildings, water, sewer/septic, gas, electric, etc…Names and contact information of contractors including plumbers, tree surgeons, electricians, gas inspectors, septic companies, roto-rooter services, etc…Locale ChecklistProfile local housing market:“Stick-built” – current foreclosure rate, months of available inventory, median home price, average rent per month, vacancy rateApartments – average rent per month, vacancy rate, prevalence of move-in specials…MHPs Comps – average monthly charges (rent, utilities, etc…), vacancy rate, # of homes for sale, etc…Profile local economy including population, major employers, unemployment rate and trendsCopies of city, county and state permits, licenses or certificates of occupancyCheck zoning for recent or pending changes to target property and adjacent parcelsCheck for known environmental issues with target property, adjacent parcels or in the communityCheck for major development or construction projects in the communityReview existing surveys or environmental reportsConsider geographic factors including elevation, annual snow fall, rain fall, proximity to bodies of water, etc…Disclosure from seller of current or recent lawsuits, regulatory or compliance issues, fines, fees, etc…

Once you get 30-40 doors you will always have a vacancy and you will always have a maintenance issue.

You'll certainly see a higher rent rate and at the very least see decreased vacancy by providing appliances (or at least you should).

So far its only had a few days of vacancy and is performing very well.

With more and more companies moving towards remote employees and eCommerce stores, how will commercial property owners pivot as vacancies rates increase nationwide?

When you have no vacancy it takes less than a hour or so. 

I agree with you on CapEx and Maintenance, but VERY low vacancy.