All Forum Posts by: Jefferson Black

Quote from @Gino Barbaro:

@Jefferson Black

What is the turnover on this type of property? I would hate to be a resident and have issues every summer. 

If the cost is going to be high, try to negotiate a concession from the seller. Not sure how bad the mini splits would be, but they are very efficient and work really well.

Very low turnover, but the units are about 15-20% below market, as well. It's a very desirable area, and it's a good property, but I think a few quality of life things are holding it back. The owner has not been very hands on since they moved out. I've already gotten some good concessions from the owner, so I don't think I can swing this, as well. I don't mind putting the money in, necessarily, but I want to do it right.

Good morning! I'm going to be closing on an old multifamily property at the end of the month, and I'm considering my HVAC options. The property currently has a boiler servicing three units with radiators, which is in good condition. The problem is that the property gets really hot in the summer, and it only has an attic fan. I want to add AC to this property and leave the boiler in place. The option I keep coming back to is ceiling mounted cassettes. I can't do central AC with no furnace, and wall mounted mini splits will look terrible. Window AC is not the best because the property has the original windows, and most window units aren't made for historic windows with storms over them.

I want to preserve the character of the property, so smaller units mounted in the ceiling will be the least noticeable. What I don't like is that I anticipate the price will be very high. What options might you all consider in this circumstance? Have any of you used ceiling mounted cassettes in a multi-zone setup?

I'm sure plenty of people are doing very well with their STR's here in CO, but I don't find the risk to be worth it, anymore. I converted my STR to a LTR because the climate here in the Springs (and CO in general) is so hostile to short term rentals, and it's getting worse. There's too much on the line for that risk to be worth it right now, but I maintain my licenses and listings on the side in case that changes in the future. Getting a non-owner occupied STR license in the Springs is extremely challenging, as they have to be in multifamily zoned areas and can't have another one within 500'. Most desirable areas are already dotted with licensed properties. You either pick up an existing property and the owner relinquishes their license so that you can apply for it, or you get very lucky.

I’ve decided that doing a 1031 into a more traditional property is the best move, here. Thanks for your advice, folks.

Quote from @Dave Skow:

@Jefferson Black- thanks ..based on the post I am not sure if the MH is your primary home or an investmenet property ?? if its an investmenet property - there are not many ( if any) lenders doing regular or DSCR loans on rental MH homes

 Sorry for the confusion. It's an investment property.

Hello! I've seen a lot of people ask questions regarding loans on manufactured homes, but I didn't quite find what I was looking for when searching. I have a double-wide manufactured home on about 5 acres in CO, and I own it outright. I just finished remodeling it, and I want to take out a loan against it. Comps put it around $500k. I know there are issues with financing manufactured homes, but I have a lot of equity. If I can't use it, I'd rather sell the property. Are there any ways to use the equity that don't have brutal rates? Thanks!

Search for the discontinued flooring on https://floorstoyourhome.com/

If you find it, buy a couple extra cases.

I would consider renting by the room at a higher rate. That should fix your cash flow issue while also giving you a bit more security, since you're not counting on a single lease anymore. It'll be a pain in the butt, potentially, but at least you'll be positive. I'm not OK with being in the hole at all on a monthly basis - I don't know about you. 

Almost nothing here is even close to cash flowing, so I've been considering renting by the room to turn a 4+ BR SFH into a multifamily property. I tried mid term rentals when I shut down my STR, and I found that the rates were very close to long term rates. It's not really worth it to constantly find new tenants and pay for furnishing and turnovers.