All Forum Posts by: Collin Goodwin

Dustin, your expenses are coming in around 15%, not too bad. Be sure to account for any potential capital expendatures such as road or utility upgrades. Based on your numbers, your looking to purchase at near 18% cap rate, which would be a heck of a deal.

Assuming you take a 75% LTV and borrow $285K, your monthly payments would be right at $2500/mo, leaving you about $3180 cash flow per month. Based on your agreement with your investors, I think there is plenty of room.

Additionally, as stated before, if you have an opportunity to raise rents, your sittin pretty assuming all your numbers are correct.

Ryan, why cant you sell the house? Sub-divide the property and sell the house off as its own entity. Is it located on the perimeter of the property, or is it somewhat central?

How about this for a strategy... Starting with a small amount, open up two seperate lines of credit from different lenders, and pay each of them off with eachother while building credibility and relationships with each of the lenders, ultimately increasing the Line of Credit. Once a desired line of credit is acheived, use the credit line to act as "cash" purchases for fix and flips. Anyone have any experience doing this?

Do HELOCs hold similar guidelines to conventional mortgages in regards to LTV? In other words, a lender would only issue a line of credit based on 80% LTV?

Of course this is not the safest method, but could be used to combat low start up capital. Thoughts?

I agree with Casey. I would make a cash offer for a much lower figure. If he is not willing to budge, hold out, in a month or two your offer may look much better than any others he is getting. Keep in mind it is a 2/1, not always the most marketable set-up and you dont want be left with the burden. Dont buy just because you can. Now I will say for a newer mobile home, its not a terrible price depending on the make and quality.

Daniel, always good to see an Arkansan on the site, I am originally from LR and own a home there. The first thing that stood out to me was that you were unable to find a sale price on zillow. I'm sure you have heard this, but even though zillow is a great starter or generalized tool, it is not always the most accurate. If you cannot get MLS access, check out the county appraiser's site, type in the address, and you will have all the history you want. Use it for nearby property sold in the last 6 months, and you can somewhat piece together your own comps. Here is the site: https://www.actdatascout.com/State/AR/Ashley. Also, you mentioned it was a family member, empty house, etc... this sounds like a prime opportunity to have them carry the terms for you and finance the property if they have it paid of and are willing. They are not making any money on it just sitting there, so it may be appealing to them.

Marcus, sounds like you could potentially be on to something, pending there is not an abundance of vacant lots/homes in the area. With the amount of work involved for the grantee to, he will more than likely be very willing to offload the lots/homes. Like Matt said above, running comps would not do you much good on these as older mobile homes do not hold much value in terms of equity, but can be a great vehicle for cash flow. Even with that said, if you can use the cash flow to cover the cost for the land they sit on, then you are on to something!

After scrubbing several books on MH investing, I have seen three prevailing flavors of MH investing: Land Lease (Renting/selling a home on leased land in some one else's park), MH+land, or MHPs. It is apparent that land lease deals have the lowest upfront cost as you only have to provide the MH which can be acquired through semi-lonnie deals (somewhat a strategy of the past), or even homes that are being given away on the contingency of having them moved. Possible downsides are control of terms, getting approved by parks to even do this, tenant turnover/maintenance, etc... but could potentially generate cash flow to help acquire more sound investments. Anyone have any experince doing deals like this?

I read Lonnie's book and was not overly impressed, especially after I picked up "Mobile Home Wealth" from Zalman Velvel. Zalman's book is great and packed with pertinant info from start to finish, without putting in a plug for a seminar at the end of each chapter