All Forum Posts by: Anna Christie

I am in escrow for 20 acres in rural northern california. The property has power, well, and passed perc test. I intend to put a modular on it for my primary residence and would like o add a couple tiny homes or another modular as a rental. Does anyone have experience with modulars? Any recommendations for companies to work with? Anything I should be weary of? Any information is appreciated.

@Jason Bott

That is really good information to know. I have not done a walk through yet, but I vut I don't believe all the units have full kitchens. To my knowledge only some have been converted.

@Malcomb Stapel

Yes, the current tenant are not ideal. I see a lot of potential for increasing rents and bringing in quality tenants. My hesitation is in how I can get that done. I would have to cash flow the rehab from the rents after purchase. So it would be one unit at a time getting cleaned up. It will take a couple years.

@Malcomb Stapel

Condition is rough. It would fall under 'good bones' but needs lots of updating

@Malcomb Stapel

$8500 month gross rents for 2021

Purchase price 675k

They did not give me a detailed breakdown of expenses

1975 build

There is a 16 unit motel that has studios, 1 & 2 bedroom units ranging from 250-450 square feet.

There is a 3/2 house 1350 Sq ft and a 3/1 house 1296 Sq ft. There is also a 1000 square foot shop for storage.

2020 gross revenue $91,000

2020 total expenses $43,000

Before tax net revenue 48,000

It needs a new roof sooner than later. It is easy access to freeway. Lots of room for improvement and increasing rents.

Is this a good deal? What are thoughts on converted motels? What questions should I ask? What potential problems do you see? Any advice or experiences you want to share are appreciated.