All Forum Posts by: Jonathan Halverson

Bryan Tasumi I have a couple mortgage broker contacts here in Houston. I'll send you a PM with their info.

He's looking to buy a 100-300 space mobile home park in need of repair where the purchase price divided by the number of lots is equal to $3-5k. So purchase price between $300k-1.5mil, if my math is correct.

I filled it out, thanks!

Welcome! Haven't seen too many people from Highlands on here, I've got a 3-unit rental out there.

I've come across a guy who has inherited 13 acres of land on the west end of Galveston and is looking to sell. It could be an opportunity to develop about 40 canal front home lots, if a canal is dug. I don't have the resources or know-how to tackle a project of this magnitude. Anyone in the Houston area or elsewhere have any thoughts on how to proceed and find someone that could turn this into something?

Thanks for the suggestions! No progress was made today. I did talk to the manager at the city water authority and he attempted to make contact with my neighbor. He wasn't home, but left a card, so hopefully they'll get in contact. The city water guy did say installing a "trash can" pump could be a no-dig option. Basically force 2" lines through the 4" lines and add a small in ground pump to force the sewage out. He said re touting my line to the front of the property wasn't an option because he doesn't have a sewer line on that street.

I have a 3 unit rental property in Highlands, TX, just outside of Houston. I've had some issues with the plumbing backing up and have had the sewer line snaked a few times. It now looks like a portion of the sewer line needs to be replaced, but that portion is apparently in my neighbors yard. It appears my sewer line ties into my neighbors before it ties into the city system. My neighbor is not allowing a plumber to dig up his yard to replace my line. Any suggestions on how to proceed? It seems I should have access to repair my line, but my neighbor is making it difficult. My property manager has offered to pay him $500 to allow us to dig, but to no avail. I plan to contact the city water district and possibly a real estate attorney, but wanted to reach out here as well. Another option would be to reroute my sewer line from the back of the property to the front and tie into the city system there, but that would involve road work and I assume a lot more expense. Appreciate any input you have, thanks!

@Doug Martin

You should connect with @Kevin Bupp and @Charlie Dehart. They are based in Clearwater, FL and invest in mobile home parks. While mobile home parks aren't the most glamorous investment, I've come to the conclusion that they are one of the best real estate asset classes to own. Kevin and Charles have a great Mobile Home Investing podcast that they share some very valuable info on. I think they just set up a mobile home park fund you can invest in, seems like that would be the definition of mailbox money if the returns offer what you're looking for.

I believe the industry standard is to only use the lot rents in the NOI. Including the rent for the home plus the lot rent can skew the value of the park because it places a higher value on the homes than is realistic. If lot rents are $250/month and the lease to purchase house rents for $550/month total, that means you're collecting $300/month in rent for the home. If you include that $300/month rent in the valuation, you're assigning a value of $36,000 to that trailer is you're purchasing at a 10 cap ($300*12*10=36,000), which is likely much more than the trailer is worth.

The NOI should only include lot rent in the calculations. You can assign some value to the lease to purchase homes, but that should be added in after you divide the NOI by the cap rate.

Varinder Kumar I live in Friendswood, southeast part of Houston. I'd love to partner with you and help in any way I can! I'll send a PM so we can connect.