whaddya think??? - Posted by peete

Posted by peete on July 19, 2005 at 21:47:52:

hey guys he has 5 rented totaling $1150 monthly income- he still wants $65k I need help getting it-will post this at the top.

whaddya think??? - Posted by peete

Posted by peete on July 05, 2005 at 18:39:35:

I found an old man selling a one acre MH park. He has 6 old but good MHs on it and currently rents 3 for $700 total- the other 3 rent for 650 when occupied. He built this little park 12 yrs ago and is now selling it due to old age and wife demands. His monthly expenses are for the whole park are $100-insurance, $28-garbage, $10 electric (for the well), and about $10 for taxes- total about $150. They are all 2 BDRM except one is a 1 BDRM, he stays in when he visits. He has been renting them for 200 and 250 for the whole 12 years. Two of them have been occupied by retired couples for 8 yrs who plan to never leave. they pay a total of $500 themselves. Anyway, he wants 65K and I can have it- I’m soliciting any feedback. BTW this could be my first deal ever.

whaddeye think: - Posted by Steve-WA

Posted by Steve-WA on July 06, 2005 at 10:01:48:

Where is this? State is good enough . . .

Are the 3@650 vacant? even so . . .

loan pmt on 65K @ 7% is 584 for 15 years, so monthly expense including debt is 734. Income is 700 / 1125 (including a 10% or greater vacancy factor), so will it cashflow? Yup. Is it improvable? Can rents be raised? Probably. Is the financing I quote conservative high end? Yup. As a senior, does he want income vs. cashout? Highly likely - this means that you need to talk to him about him carrying all or part of the financing, which will probably lead to a better deal for both of you.

Unless there’s something really really bad about this that you didn’t disclose, get it written up, and start due diligience. Today.


Re: “BTW this could be my first deal ever” . . . might be a little much for an inexperienced investor - better trurn it over to me - I’ll pay you $1000 for the bird dog fee.


Just my opinion.

Re: whaddya think??? - Posted by eli

Posted by eli on July 06, 2005 at 01:47:26:

call me 858-433-0485 and I will walk you through it…

Re: whaddeye think: - Posted by peete

Posted by peete on July 06, 2005 at 10:41:57:

He is a retired doctor who owned a bunch of RE and all the carwashes in a certain town. He sold everything and he wont take payments. He’s nearing 80 and just wants to sell everything so his wife wont have to worry about anything if something happens to him. He already called his bank’s president to get me a good loan rate, so we’ll see what happens. BTW three are rented and three are not. He said they could be rented but he dont rent to adults with kids (bad past experiences) or people with their own furniture - did I mentioned that they are furnished and he built a nice size shed on the land which contains a washer and dryer and lawnmoor free to their use?

BUYITBUYITBUYIT . . . but only if: - Posted by Steve-WA

Posted by Steve-WA on July 06, 2005 at 11:03:14:

Peete, ya gotta know your market. Again, where is this thing?

Will the other three rent?

Is there anything bad about this deal? Anything that you feel wary of?

My dad in MO (I got him into the trailers by taking him to the Oct Workshop last year) recently bought a three-MH property with room for a fourth (just moved it in, and utils are being hooked up) for 75K, and they rent for an average of 350 each. And that was a great deal. Your rents are 30% lower (will the market support raising them?), and you have twice as many units for 10K less.

Please answer:

  1. Why are you unsure?
  2. What is the rental market for a furnished two-bed?

Re: BUYITBUYITBUYIT . . . but only if: - Posted by peete

Posted by peete on July 06, 2005 at 12:16:07:

The town is a small unincorporated one but is only 12 miles from the military post. The seller said this is the first time in 12 years he didnt have atleast 4 rented. There has been people interested, but he didn’t think they were trustworthy. He had several people wanting him to finance the park to them but he wants out, completely. I think for $300, I can fill the two 2-BDRM ones pretty quick. I may not be as picky as he is with tenants, i’ll just require a bigger deposit. The rental market nearer to the post would be about 100-150 more per month. I’m sure I can get 300-350 if I want, since there is no lot rent. I’m not really unsure, just the normal first deal concerns. If financing goes well then the three thats currently rented will pay almost all the monthly expenses, and the rest could provide a pretty nice cashflow. I feel that this could provide a pretty good ROI.

Re: BUYITBUYITBUYIT . . . but only if: - Posted by Steve-WA

Posted by Steve-WA on July 06, 2005 at 12:33:27:

I am really surprised that no one else is chiming in . . .

Sounds good, one note of caution: if you’re going to get into the property business, “I feel that this could provide a pretty good ROI” needs to be backed up with numbers. Get good at running numbers.

Where is this?