All Forum Posts by: Brenden Mitchum

Hi @Shyam Panchal

Here in the greater ATL area it is pretty tough to find on-market properties in the good school districts that cash flow, especially with prices remaining inflated. My advice to you is two-fold.

1. Check out the South Lilburn/North Stone Mountain area. This gets you in the Parkview School District and you just might be able to cash flow (but don't expect $$$). South Douglasville also has some great schools and lower home prices. 

2. As @Jordan Burnett mentioned, sit tight. Not everyone who is currently deferring their mortgage payments will be able to catch back up when the time comes. Also, not everyone who is currently laid-off will be getting their jobs back. We have yet to see the true effects of this pandemic. That being said, I don't think it will take 12-18 months for deals to start popping up. I think it will be a rough winter for many (unless you're a savvy investor sitting on cash). Obviously, no one really knows what is going to happen but now is not the time to go out of your comfort zone or settle for a mediocre investment that ties up your cash. 

So just stick to your guns and keep looking until you find something that fits your criteria. If you ever have any questions or just want to chat about the Atlanta market, please feel free to message my anytime.

@Sean Rosenbaum

Thanks for sharing your strategy of choice with us! 

Cash flowing properties is definitely the way to go if you're looking to build long-term wealth. If this is your goal, I'd say don't even worry about flipping. Flipping is a job and you'll already have one of those as a real estate agent here. However, if you find something that would make for a great flip but would not fit your B&H strategy, perhaps you could tie it up under contract and simply wholesale or even list it yourself if it is off-market. Just some ideas but I do think focusing on one main investment vehicle to start is smart. Pick something that gets you moving towards your goals and stick with it until it no longer moves you towards those goals, then pivot to something else.

Hey @Sean Rosenbaum, welcome to the BP community!

What strategies are you looking to get into here in ATL? What is your plan? This is very useful information, not just to yourself, but also to potential future partners that see this post. You are definitely taking the right steps to start networking but share a bit more about yourself and your REI goals so that we have a better idea of where you are now and where you're going. This way we can all help each other!

By the way, I am also a recent (December) transplant to the Greater Atlanta area. Since moving here I have gotten my real estate license and have been studying the market non-stop. So if you have any questions regarding the ATL market or individual submarkets within the MSA, please feel free to reach out to me anytime!

Hey @Jimmy Toussaint, welcome to the world of MHP investing!

Just as @Rachel H. said, high cap rate does not necessarily mean the park is in a rough area. Cap rates for MHPs tend to be a lot more fluid than for other asset classes. Since cap rate is really just the expected return on investment if you bought with all cash it is effected by so many things in the world of MHPs. You could have a park that is pretty nice and in a good area but is very small so won't qualify for traditional financing. The owner understands this so is selling at a higher cap to make it more appealing to a buyer. Or perhaps the park is in fantastic location but is in rough shape and once turned around will be an absolute cash cow. This park may be capped extremely low because the seller knows they can get more for it due to the potential upside.

Also, it is quite common to see cap rates artificially boosted by seller and broker assumptions that you may not necessarily want to make in your own evaluation. For example, they may be including POH rental income in GOI or reporting expenses that are way too low. So don't get too focused on pro forma cap rate. Just do your own analysis and see if the real returns work for you.

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Hey @Account Closed, welcome to the BP community!

I have found MHU to be an excellent source of MHP information. There is a forum on there that has been like the BP of MHPs for me when searching for answers to my questions on the topic. There are also products on there that you may want to consider purchasing if you are very serious about MHPs. The homes study course has all the information you could ever need to get started. It is a bit dated but the concepts are the same and work now just as well as they did then. In fact, it's a safe bet that many MHP investors that have jumped in the game in the past decade are probably MHU alums.

Frank Rolfe also has an excellent podcast called "Mobile Home Park Mastery." This is a great, free place to start! 

If you have any questions or just want to chat about MHPs, please feel free to message me anytime!

You got it @Ben Weatherhead, connecting with local real estate professionals is the way to go! Most are happy to help because they know that by providing you value now they may receive value from you in the future in the form of direct sales or referrals. These are the people to speak with in your market right now because they have their fingers on the pulse. They are seeing how the market is changing every day and have the most up to date information. This is especially important right now with such uncertainty. 

You can and should also check sites like datausa and bestplaces but this only gives you a broad, macro look at a market. If you want the specifics of what is happening right now, your best bet is to reach out to those local pros. 

Couldn't agree with you more, Ben! Shoot me a message anytime if you want to chat or have any questions as you're getting into the game!

Hey @Francisco Gomez!

The Millionaire Real Estate Investor by Gary Keller and the ABCs of Real Estate Investing by Ken McElroy are both must reads for real estate. I am currently reading the Personal MBA by Josh Kaufman. It's filled with a ton of great info that anyone who plans to run a business should know. Plus the kindle version is only a few bucks right now. 

I have a huge list of real estate and business books that I've read or plan on reading. Feel free to shoot me a message sometime and I'd be happy to share it with ya!

Hey @Ikenna Okoye

I would say this question really depends on what stage in your investing career you are and what strategy you are employing. If you are running a syndication, you will definitely want to speak with an attorney throughout this process. You will also need a knowledgeable real estate CPA. 

Now, if you are just looking to buy a SFH or a small MFH, you do not need either of these people during the purchase process. The exception would be if you are not working with an agent and are purchasing off-market properties or are structuring some kind of partnership. In these scenarios you would want to speak with an attorney, but you do not necessarily need to speak with them every step of the way. Expect to pay them any time they are drafting/reviewing contracts or giving advice. Basically, any time they spend to help you is going to cost you. The CPA can wait, but it never hurts to start speaking with a few to see who you would like to work with in the future.

Please, feel free to message me anytime if you have other questions or just want to chat.

@Christy Porter

Have they specifically done anything that they agreed in the lease they would not do?

If your lease is solid and they have done something they signed and agreed not to then chances are they have already broken the lease and you can begin the eviction process. Get on the phone with an eviction attorney in your area if you are not sure. 

You can also just try giving them some money to move out.

If you have other questions or just want to chat, please feel free to message me anytime.

Hey @Yahya Moataz I'd be happy to offer some help here.

First let's start with that expense number. How in the world are you going to keep expenses at 30%?

Have you ran the numbers through the BRRRR calculator and understand them front and back?

As long as it is fully rented, you should have no problem with the refinance since it will be based on income. However, the problem could be in the amount of the refinance if you goof up the ARV. Talk to several lenders about this so that you can really get a good idea of what the refinance step will look like. They'll tell you exactly how they would value the property and you can use this information to nail down that ARV.

Feel free to shoot me a message if you have any questions regarding running the numbers on this.