All Forum Posts by: Rich Ferradino

Having septic isn't bad as long as you have a strategy for what happens if the drain fields can no longer hold the sewage. Make sure you have good soil that can easily absorb the sewer water, and there is space where you can extend the drain field if needed. If you need to replace a septic tank it's about $4k for a 1000 gallon. I don't pump my septic tanks every year. I do it about every 5 years and it's about $350.  

@Luke Leslie There is a lot of information that is needed before deciding to build a park. As Anthony said check with your local gov't and chat with the commissioner. If it's in the city limits you'll have to spend the money on getting it platted and zoned. The biggest cost is bringing in utilities and infrastructure. Since you are doing bigger lots you could probably just plat the land as individual lots especially if each lot will have access to the county/state road.

@Mauricio Ramos I just completed a rehab on a MHP in Poteet. One of the hardest things is the carrying costs while getting it developed.

Where is the land located?

@Ian McClure Is the current owner cutting the grass for the entire park? Typically that is the responsibility of the lot renter. Sure you have to cut the common areas, but those numbers seem high. 

 As Thomas mentioned when you have a 3rd party owning a large percentage of homes is they can have leverage on you as the park owner. You just need to make sure you maintain control of your investment. Some issues are what happens if they don't like the lot rent increase? Or if they pull all their homes out of the park? What if they don't maintain the homes, or if they don't screen tenants?

Hello,

I am looking into purchasing some mobile homes in the Sumter, SC area. Can anyone tell me what the market is like in Sumter for RE Investing? I went to bestplaces.net to get some market data, but wanted a local's opinion. I'm looking at selling the mobile home and renting the land.

Yes this is a strategy used, but I would do it on your own private land for long term buy and hold. That way you get to take advantage of the appreciation of land if you are in a market that is growing and your land is in the path of growth.

One advantage I've seen in some parks is that they will do the property management for you, not including fixing the home, but tenant selection.

So your saying you don't want to buy MH's with land over 30k correct? What are the comps for MHs with land in the area? Buy it and owner finance the Land and Home. 

most convenient and most effective is ACH payment. Deduct directly from their checking account. 

Another way is to have them go to your bank deposit into your checking account

@Curt Smith Wouldn't  your 30% expense ratio be calculated as x 0.7 on your park value formula versus x .3?  I like your DD tip on MH titles. In the commercial RE contract if just says convey title which could be interpreted in different meanings depending on what side of the sale you are on. 

Before you start developing I would ask how much it costs to buy 1/2 acre lot and bring water, septic, and electric. If land is cheap then you'll be competing with the local farmer selling off lots. 

If it still makes sense talk with the local utility companies and land surveyor for costs of platting, bringing in utilites, roads, etc.