All Forum Posts by: Derek Harris

@Pwin Kumar, I suggest listening to one of the following podcast shows: Mobile Home Park Investing (host: Kevin Bupp and Charles Dehart), the Mobile Home Park Mastery Podcast, and, of course, BiggerPockets has a few good episodes on MHP investing. Also, I would suggest reading the Mobile Home Park 10/20 Investment System by Frank Rolfe. 

@John Herte, in the past, we've allowed people with lower than the minimum credit score either pay a higher security deposit or pay risk rent. It depends on what works best for them. This is done through our property manager. We also try to have someone else cosign for them on the lease.

@Michael Brown, what is the ARV or, in other words, what do similar fourplexes that do not require substantial rehab sell for? One strategy I've used in the past to negotiate a lower price is to get a home inspection. Although this may cost $300-600, I was able to negotiate almost 10k off the asking price. Keep in mind, home inspectors typically go overboard and most of their recommendations will not be made unless it is safety related. This tactic typically needs to be done in conjunction with getting contractor bids. Most non-owner occupied sellers I've come across have no idea the actual condition of their property.

Also, I recommend reading the book Never Split the Difference or watching some of the BiggerPockets podcasts with Chris Voss. 

@Michael Brown, how did you come up with the stabilized income? Is it based off comps? How stable is that market? Is it reliant on one employer? With rents that low, I suspect it is probably in a high CAP rate area which usually translates to a higher number of non-payers and evictions. I would also factor in property management costs.

In regards to the offer price, since the property has been on the market for two years, it appears the seller is not highly motivated to sell. Have they adjusted the sales price during the past two years?

@John Boyd, make sure you confirm what the property is zoned for. Some duplexes I've come across are illegally zoned. For example, some homeowners try to convert a single family residence to a duplex without getting city approval. However, some older properties are legal nonconforming which is a fancy way of saying they are grandfathered in. 

Patrick, I would look at the county assessors website. I recommend looking it up on the MLS too.

Travis, there are many ways to fund a deal. Keep in mind that the better the deal, the easier to fund. I recommend reading The Book on Investing in Real Estate with No (and Low) Money Down. Borrowing the down payment from someone else is a method. This assumes you buy the property at a discount and/or force appreciate its value during that year.

Property management can make or break a lot of investments. My recommendation is to choose wisely. This can best be accomplished through referrals. If, however, you choose to be your own manager, I recommend reading The Book On Managing Rental Properties. It'll save you a lot of headaches.

 Does the duplex consist of two separate deeds? 

@Laura Moreno Not overpaying for it.