All Forum Posts by: Charlie Price

I just tell them I found another tenant and they already gave me a deposit, but can I call you back if something else opens up or this guy falls through.

Michael Short Sounds interesting. I see your down not too far from Orlando. Was down there a few months back to Disney World with the family. We stayed on DW property with our RV at the Camp Wild or what ever they call that. A great time and I'd highly recommend it. Definitely 5 stars. Bring your on wallet though! Looks like Orlando's exploding. I must have seen over 50 pieces of heavy equipment widening all the highways through there. That's always a good sign for future growth and RE prices. Wish I had a few million extra to buy up some of that down there. Don't we all though. As far as this deal....there is no clubhouse, pool, or laundry. It is a total dilapidated property. Not even gravel road or pads. Just dirt/sand! Spaces would probably rent for $225 up to possibly $300 after the place was fixed up. Rent on a new/newer 3/2 mobile home would probably be in the $700-800 range. John Arendsen Thanks for your heads up. It's a small town and I stopped by and was able to meet with the code enforcement and city planner. Walked accross the street and met with the Water/Sewer department as well and got the 411 on that. I had a good chat with both departments. I like living in a small town again. Something like that would never had happened in my old stomping grounds Atlanta YUK. :-). They are eager for someone to clean the place up. It is grandfathered in as a MHP. They would not have problems, and even be happy to have me bring in new or newer MH's. It is a total dump currently that has been sitting rotting away for at least 10-15 years. I cleaned up a total dump 23 soon to be 30 unit apartment complex about 1/2 hour from this place. I keep it fully rented with mostly excellent tenants to the tone of $20K gross per month. I can say that there is definitely a shortage of lower end clean safe and decent rentals in this entire Okaloosa area. Especially the closer you get to the beach. This property happens to be about 45 mins from the beaches. Right near the I-10

@jeff B. Thanks for the shout out and encouragement....thing is Im getting the end of my road for buying fixing up and managing. It's too much work LOL. Ready to start paying down these loans and traveling more, and sipping margaritas by the beach. Have a 5-6 month RV trip to Alaska the pacific north coast and 20 National parks starting this June with my wife and kids. Having said that, I am supposed to close next week on an 8 unit fixer upper 1 1/2 miles from the beach in Fort Walton Beach area. I got the seller to carry back $200K at 3.5% payments amortized over 30 years ($900) and a balloon in 10 years. Hope to fix up and generate an additional $10K gross per month.

@Chris Silvas Be happy to try and help any way I can. Not sure how to send out a PM, but feel free to reach out to me.

I would also lean toward taking advantage of the tax free capitol gain. Take the profits and find a nice triplex or quad that you can be close to. If your starting out for $400-500K you could probably buy a nice 3-4 plex put a big down payment, get good terms and have a comfortable equity to build on. You'll most likely have much better tenants and probably can find something close to town if you spend that kind of $$ and it may have future appreciation potential. Or you could probably find a run down 10-15 unit project to turn around. For your first one maybe better to go with the expensive one near twin and shoot for appreciation and good tenants. My wife and I have an out of town triplex in midtown Atlanta that we've owned for 12 years or so. I don't think 1 unit has been vacant for more then 1 week since we've owned it. Normally when someone moves out we already have a waiting list of professional people to move in. Never had an eviction or no pay there. We purchased for around $350K. Probably put $40-50K in general maint paint and roof over the years. Could sell now for $650K-$700K. Gross $4,500 a month like clockwork. Getting the point that we're taking big chunks out of loan balance each year now which feels extra great. Much different and better/easier experience then some of our lower end properties we've had over the years.

I haven't figured out the trick yet either. I have a soon to be 30 unit complex. My first MF larger then triplex. I started with totally vacant and foreclosed REO complex had 23 units 3 years ago or so. Year 1 about $40K gross, year 2 - $155K gross $68K NOI, year 3 - $240K gross $155K NOI (self managed). Should be 20-30% higher this year as I continue to bring additional units on line. I'm working slow and converted a couple larger units to 2 small ones and converted storage space to additional units to make an extra 7 units bringing the 23 up to 30 when I finish in the next few months or so. Had to use cash for the purchase. I did get a local bank to give $200K early on when I began renovating units. I've gone back and asked if I could get more $$ based on current operating income. They want to see two years bank statements with rent deposits (small problem as some is paid via PayPal with debit cards, some is deposited to two different bank accounts and some of course cash that I put straight to expenses (or a weekend boat trip now and again :-). Bank want 2 years tax returns, don't show a lot cause we own a lot of rental property, and my financials, which are fairly strong $2M net worth and 740 credit score, but a big black eye with a bankruptcy back in 2011 due to being over leveraged on rentals and the market crash. So difficult for us to get bank loans currently. It does feel much better and less stressful to not be highly leveraged though!

Congratulations on finding a willing buyer on your own. Great job! If you or your buyer has never competed a RE transaction on your own your own it can be a daunting experience with a high probability that something may go sideways. But it can and has been done many of times. I'm sure by many people here on BP. A few humble ideas from someone who has done hundreds of RE closings for others as an agent, and dozens on my own behalf. 1. Try and find a flexible hungry real estate agent that will help you out for $100-500 or so. 2. Find a RE closing attorney that you can close with. Maybe they will help if they are getting the closing. Although they normally like you to showing with a signed executed contract in hand. 3. Google and read, or even buy one of the many e books on Amazon that tackle the task. Good luck! Give us an update and let us know how your doing.

Good for you Amy! Here's a few of my initial thoughts for what it's worth. 1. I'd sell the SFR right away and get what you can. If possible. 2. When calculating deals I try to shoot low for rents and work in a moderate vacancy factor so I can hopefully be pleasantly surprised. Like maybe ($630 + $675-700) with a 10% vacancy factor along with no pays an eviction here & there. I also add on some exterior or landscape maint, and some misc expenses that always seem to show up, like needing a new stove, fridge, HVAC repair, etc. etc. etc.... Maybe you've calculate for these with your "reserves" moneys? I've never had much luck with duplex tenants taking care of the yards either. Even if its in the contract for them to do it. Especially at the $700/month rental market. 3. Good idea to try and lower taxes. We have done this numerous times on our properties. A little time and effort can reap hundreds or even a few thousand in lowered expenses. 4. $1,200 for insurance on 3 triplexes seems a little low to me. But you probably have quotes or previous owners insurance in place. 5. Purchasing, doing light rehab, advertising and getting three new tenants at 15-20% higher rents in just a few short weeks seems super aggressive. I would think that may take at least a couple months to do. But maybe you already have contractors and possibly tenants lined up? Again, is calculate worst case going in and be pleasantly surprised. :-) 6. I don't see where your paying back the 145K that is seller financed....$385 - $240 = $145K seller financing @ 4.15%. That's about $10K + per month for a 14 month payback! Or if they are low interest only payments or something else, the. That's a big chunk of change to come up with in a short period of time. Maybe your plan is to refinance all of them and get the money, which is more expense. 7. Not trying to rain on your parade, there are probably things I'm missing. that is great that your moving forward and making things happen. Congrats and good luck. Sounds like your doing well! These are just one humble mans opinions.

Paul Argenbright - Thanks for the insights and advice Paul. I would love to just rent out the pads. But not sure how long that may take to get 16 or even 10 people to move mobile homes onto the MHP. I'm fairly certain that I could rent or possibly rent to own/owner finance 16 units in the area in a short amount of time. Andrew Martin - Thanks for your kind words. I've had my share of failures along the way as well! Lucky to be where I am now. As far as deals in this area, or within 1 hour of here I think there are many. Just have to scour for them and be ready to jump when they come up. Depends on what your looking for and what you have to work with of course. I would be happy to get together anytime your in the area for a coffee of lunch or whatever. I have a pending deal in FWB now scheduled to close next week, so I'm there all the time.

I have a 30 unit complex with 2 washers and 2 dryers. I purchased good used spew. Queen top loaders for $400 each. I bought a soap dispenser and a change maker for convince (another $800, but worth it for me.). I have almost exclusive efficiency units and most are single people, so less laundry then normal I guess. Mine are electric dryers. I charge $2.00 to wash and $1.50 to dry. I figure it costs about 1.00 +/- in utilities. One break down/service call per year at $300. I bring in anywhere from $200-$600 per month. I know a big range, not sure why, but those are my numbers. The $500 change maker is something I would advise to anyone having a small scale laundry. You also have to keep $120 or so of quarters in there. But you get to rotate your quarters and keep bills in your wallet, and not have to worry about rolling quarters all the time. Plus a big convenience for your tenants. Hope that helps.