The property is for under 50K. According to the owner, the park has a positive cash flow of $1800 per month (we are VERY suspicious of this figure, and we are trying to get copies of the tax and expense info). His reason for selling is that he doesn?t have time for it?makes us think ?landlord hassles?. We are looking toward Lonnie deals - selling the trailers and carrying the notes. The park is small but has a lot of potential. There are 3 or 4 trailers that the park owns that would require major repair; the worst one has fire damage and a section of a side is gone. There are 9 owned by the park that are currently rented, so there is some income. Our thoughts would be to give the renters option to buy, and to set up some rules and regulations in order to remain in the park. The trailer that is rented out for the most money has bags and bags of aluminum cans piled up right outside the front door. The overall appearance could easily be improved.
IF we lived within 50 miles of this property, the only questions we would have would be price, terms, etc. But would distance keep this from being a good investment even though we could be there at least once a month (especially this summer) and have someone else help with the overall management? Does anyone have any suggestions for building a portfolio at a distance?
We?re a military family (for now), and that could mean a move anytime. Our goal is to generate enough income from real estate to one day soon say “Good Bye” to this job, and move back to our “home” state permanently. That’s why we are considering properties there. Has others faced this same dilemma?
We live outside of our ?home? state and travel back and forth every month or so to visit family. The property in question is in our ?home? state, and we have family, a young couple, that live within 15 miles of the said property that would be willing to help with management. Our goal is to accumulate enough positive cash flow from properties to leave the military so we can relocate permanently to our “home” state.
The property is a small (21 space), run-down mobile home park owned by a ?Burned-Out-Landlord?. Nine trailers are owned by park owner and are rented; one trailer is owned by a private individual who rents the lot; seven open (vacant) lot spaces and three R.V, hook-ups. It?s location is okay (average); houses around are considered average; and the town is the county-seat with potential.
If we bought it, we would want to sell all or most of the trailers probably, most of which would need to be moved out of the park to enhance the parks? appearance. We would purchase better, used homes to fill the lots, selling them, and renting the lots thus minimizing the landlord hassles.
Our question is should we even consider properties that are so far away with so much work to be done initially? We think this could be a good investment, but would the distance combined with added work involved in the beginning make us the next ?Burned-Out-Property-Owners??
In this business, you want to maintain control at all times. Owning property long distance is not the way to do it. Seems like you should either do mobile homes deals closer to where you are now or focus on making money some other way in the real estate business that doesn’t tie you down and allows you to move back to your home state when you choose. Wholesaling, lease options, the Paper Game (a la John Behle) are just a few suggestions. Good luck. I once lived in Florida and couldn’t wait to get closer to my home state of Ohio and my fiancee’s home state of Pennsylvania. Currently in Maryland in between the two, but I know how you feel. Hope this helps.
I would think that this property would be to far away. My experence says that to have friends-or family to help would not work. You did not say what the property would cost. The homes would have no value to you if they were to be moved. Who would want them if they are no value to you. Possible they could be of service to you as a Lonnie Deal. These old parks can have lots wrong with them that may not be apparent. Study this hard before you buy.