All Forum Posts by: Geordy Rostad

@Marc Lovan

What year is the mobile home? IMO, that makes all of the difference on whether you should fix or replace.

Anything older than July 15th, 1976 is considered a "mobile home" and is basically unfinanciable. You can find some banks to lend on it but the terms are pretty harsh. High interest and lower LTV.

Anything after that date is considered a "manufactured home". A manufactured home qualifies for VA and FHA financing. There is typically only a small rate bump because if it being a manufactured home.

Ignore Zillow pretty much on mobile home values. Zillow doesn't entirely have their algorithm sorted out on them.

If the house is older but could be livable for a minimum reasonable amount, you should fix it and put a renter in it.

If it's old and too rough, you should tear it off and replace it with a brand new manufactured home and sell that. (if the numbers make sense). 

I've done three such deals so I have fairly specific experience in this area.

@Chad Anderson

I think your insurance is too cheap on this one. Great numbers out of an inexpensive property though.

@Ryan Magdanz

That place is a beauty. Nice lot and cool house.

If it was my house, I would clean it up(if need be) and leave it "outdated". The mid-century look is popular still and super cool.

I would focus my efforts on adding a bedroom and bathroom downstairs. I would also do a grind and seal on the basement concrete to give it more of an industrial look. 

I think you would easily find a renter who wants that style. Still, adding another bed and bath will boost your appraised value and projected rent by a good bit.

Is it on sewer or septic? If it's on septic, adding a bedroom might not be possible. Another bathroom would still help. One more point to consider is gravity. You need to know where the sewer/septic line is. Sometimes there's no drains in the basement floor so you might need a grinder pump to add basement plumbing. 

@Chad Anderson

Are you looking to keep the tenant or is the $850/mo a pro forma number?

I'd only have a couple of bits of caution for you:

1) look over the resale cert and reserve study carefully. Make sure the HOA is in good shape and has plenty of money in their accounts.

2) Your loan amount is pretty tiny. Have you found a bank that will underwrite this loan for sure or are you basing it off mortgage calculators?

This looks like a score. Nice find!

@Edward Simpson

Congrats on saving $250k. That's a big chunk to use in real estate. Are you planning to use your cash as a down payment and leverage something or are you trying to buy something in cash?

On multi family property are you looking for residential (2-4u) or commercial (5u+)?

Keep in mind, the return you are looking for can come in many forms.

What is your main goal, capital appreciation, cash flow, or portfolio growth?

@Dominick Dahmen

Ya that should solid. You shouldn't have any problem with 4 out of 44 being park-owned. Those should be easy to offload, just make sure to back the home-portion of the income out for your financials on those four spaces.

@Dominick Dahmen

One of the most important things is to determine how many of the mobiles are owned by the park itself. If the bulk of the homes are owned by the park and that is causing the rent income to skew really high, you're going to have problems at the bank. 

@Kevin Pereira

Hard money will come at a higher interest rate. Not only that, hard money usually wants to be short term. Like a year or less. It works well if you need to rehab but it will be pretty hard to buy and hold at 10-12% interest.

@Chris Scales Your best bet is to go down to the city and talk to the planning department. They should be able to tell you all of the requirements and if it's even possible on the particular piece of land you are looking at. Better still, they will probably be able to give you information about recent nearby subdivisions. Within that information will be the names of the engineers, contractors, and surveyors who completed all the necessary work for those projects. You'll be able to call those guys up and they will already be familiar with the area and give you more insight to whether it's worth it or not.

@Jeffrey Carr

This looks fantastic. How much did you spend on rehab and what items did you fix/redo with the money? Did you do all the rehab yourself or hire a general to do most of it?