All Forum Posts by: Tommy Vise

Thanks. Alice K.  The owner is an elderly man that has had a stroke and is a little slow.  He had it priced at $75k but he came down to $60k in the past 2 weeks.  It really looks like it could be a money maker.  One of the smaller homes is just a 12 x 60? and it only rents for $250.  I was figuring that I could pick a 16 x 80 up for less than 10k and charge $550.  I think that the only way to go is up on this property.  It is small but it may be a good deal. 

I have a deal that I wanted to pass by everyone:

--4 Mobile Homes--Each is OK condition.  Need paint and some up keep but nothing out of the ordinary.

--In the County.

--2 acres of land that this small park is sitting on.  (Each unit has 1/2 acre.)

Each MH lot has city water, city electricity individually metered.

Each resident is responsible for their own grass upkeep.  

The only expenses that the owner said he had was insurance $800/yr, taxes $550/year, registration stickers $300/year.  

Total income is $1,250/month x 12 =$15,000

Minus 800+550+300= $1650

Income = $13,350  x .70 = $9,345 / 60,000= 15.6%

Is this a good deal?  

Am I missing something?

Thanks,

Tommy V

THANKS for the advice! 

I found a Vacant property that is about to be foreclosed upon.  The house owners have both died and no probate has been done yet.  The heirs (3), of the property are wanting to sell it for the payoff to keep their parents name from a foreclosure.  The mortgage owed is $44,000 & the back payments are around $4,000.  The assessment is $89,000.  After speaking to the attorney, the people that are owed any money can put a lien on the home for up to 2 years, regardless of who owns it. 

*****Question: Can I:

1. catch up the back payments, 

2. get the owners to Lease purchase/"Subject to"  the property to me for two years, 

3. I pay the mortgage company the payments, 

4. sub Lease the property and

5.  buy it after two years

If I am missing something, let me know.  If you know of another way to do it, let me know.

Thanks, Tommy V.

Ok. Thanks for the responses.

The property is in Alexandria, Louisiana.

It is vacant. 

Needs: New roof, some plumbing issues. Interior paint.  My carpenter told me $5k.

DOM depends on the cash flow. Better cash flow= less days on market. 

Hope this info helps. Thanks

I have an out of State, Vacant Property that Needs $5k in work.

It is not in the best of areas. I owe only about 20k on the property.  It rents out for $600 per month. I have no Cash to fix it at the present time.  The mortgage payment is $335.

How can I partner with another investor to fix and flip it?

Or any other ideas?  Thanks!

I have an owner who is looking to get out of her Mobile Home Park.

She has NO Rent Roll or contracts that the tenants are on, just month to month agreements.  Let me give you the numbers:

19 Lots

17 Occupied 

7 park owned homes

$100 per month per trailer = $1000

7 park owned = $2650

Total of $3650

Mobile Homes are in OK condition, could use a little work but none is too bad.

All tenants pay for water, gas, electricity, sewage.

The road through the park is paved and I have to keep it up.  

Each is individually metered.  

Asking price is $210k for the whole thing.  

NOI= 3650 x 12 x .7= $30,660

NOI/Sales Price = $30,660/210,000

Cap Rate =14.6%

Positive things with this park:

1.  The lot rent is low.  Can be increased immediately.

2.  There is a vacant trailer in the park that needs about 2k in work that can be bought for 3k.

3.  The mobile home park can be made much nicer with some improvements, painting of MH, upkeep of the road.

4. Near the river.   About a mile to the nearest boat dock. 

Negatives:

1.  Older septic systems

2.  Road is getting bad, needs work--10k Maybe??

Is this a good deal??? Any suggestions?  

Thanks for letting me know.

Tommy

Thanks for the advice Chris M., Jean Bolger, and Sean S.!

Just saw the Cash Flow Analyzer on BP.  When I entered all the numbers the cap rate was not as I expected. :/ 

It was actually 11.5%  

So, question:  Is this still a good deal?  If not, what would you offer in order that you would feel good about the deal.  Remember that the price is $129,000 (w/o the furniture).

I came across a 6 unit apartment that the owner wants to sell.  The complex is an old school board building that has been turned into a 6 plex, all with there own entrance and parking.   Has a new roof, new plumbing and good electrical systems.  

All of the apartments are Furnished with Antique furniture.  The owner is VERY picky about her tenants--No pets or children. :(

I'll give you the numbers:

She is asking $150k for the deal, with the antique furniture.  130K without the furniture.

The avg apartment rents for $600/month x 6 = $3600

3600 x 12= 43,200  (Income)

Expenses= 1,500 x 12=   18,000 (expenses)

43,200-18000=$25,200 (NOI)

NOI/Price=Cap Rate

25,200/150,000=  16.8%  Cap Rate with the furniture

*25,200/130,000=  19.4%  Cap Rate without Antique Furniture

NEGATIVES= 1.  Water and Electricity are on same meter.

2.  All of the apartments are not rented because the owner got her note paid by just having 2 renters.  So, I will have to get some quality renters, which should not be a problem in this market.

So, What am I missing?  Is this a good deal?  What other info am I forgetting? 

Thanks for your advice. 

Just a little tidbit.  You can use Searchtempest.com in order to find mobile homes/mobile home parks that are on Craigslist.  Instead of having to go to each individual Craigslist site, you can go to this one site and it pulls from all of these sites.  Just enter your zip code, then the amount of miles that you are willing to travel and you have a great way to find of any MHP or MH that are For Sale.  Hope this helps!  

Tommy