All Forum Posts by: Jon Klaus

Maybe someday in the future a property will once again be worth the price a willing buyer and seller come to.

How much did you pay? And the rehab and other costs?

Dick, that is an excellent list to post on the mirror--thanks for sharing.

"20 miles from downtown San Antonio."

I was hoping you'd say something like this. The macro-trend is in your favor. SA is growing at more than twice as fast as the US and the home is within commuting distance of many jobs. If the immediate area is good, you might be fine paying more than I suggested.

BTW, selling the house on a note and renting the land can work well in some situations. Read "Deals on Wheels" by Lonnie Scruggs. That's the book that got me seriously considering mobile homes.

I've had errors on the HUD-1 changed at closing. Don't see why it can't be done.

I am not saying walk away, it's just that I'm doing slightly better deals in NE TX. Last year, I would have though it was a great deal, but as I've looked at deals every week this year, I know there are better deals. Near me, anyway. What is the closest city? How far?

1200SF is a big SW, probably 16x76. I just rented one like that at $640. I paid $21K for the property, but spent too much putting a driveway in. The upside is that it's a 2005 model on 3.7 acres with state highway frontage.

I am doing lease/options on these. In addition to the security deposit I get an option fee. The tenants are better and are working toward ownership, so their interests are more alligned (theoretically) with yours in taking care of the home.

I have tried to sell the home on a note and rent the land, but people are skittish about that on land/home deals. I would be too, if I were in their position. I don't like owner finance as much, because I want to retain more control of the deal and the property until they buy it.

You might find a bank to loan on 50-70% of the land value, but I wouldn't think that is worth the hassle. They probably won't care what the tax assessment is. In a year or two it might make more sense as lending loosens up.

I am paying cash for mine and using private money. I may refinance when I have a larger performing portfolio and the lending climate improves.

I owned a condo as a rental for 12 years. It cash flowed prettyy well, but I came to understand I really didn't own real estate, but had partial control of an improvement on someone else's real estate.

I paid $30K for it and eventually rented it for $725. Not bad, right? Well, the HOA fee went from $86 to $204. I sold it for $30K (same as what I paid) after 12 years, but if it had been a SFR down the road I would have been able to sell if for at least 2X.

These are the kind of deals I am doing to buy and hold for land banking. For this to be a deal, I'd want to be all in for $25K, which means a sales price of $20-21K. It should work if you pay $30K all-in, but I like a little more margin for error.

The mobile home will depreciate faster than a stick built house, so you need to buy for less.

Singlewide or doublewide? Square footage? It's easier to rent and sell DW's and you typically attract a better tenant. Where does the $600 rent estimate come from? Are you seeing rental comps for MH's on small acreages?

As far as paying cash, can you get financing on it? It 's harder on MH's. Does it have an FHA foundation? That would make it easier now and when you eventually resell.

Where is this?

"discernment" I can definately see that in your forum and blog posts. Pretty critical for a landlord, especially for tenant screening in high volume.

"Entrepreneurs are not one-dimensional. If you're not good at a lot of things, you won't be successful in running a real estate investing business (or any other business). "

Mike, I agree with you. I've run my own businesses since I was 23 (45 now) and I've had to do everything and more at various times.

However, some of the things I was not good at, many of them I was good at, a few I was great at, but only one I was best at.

Do you have something that you've identified in yourself that you are the best at?
Your greatest strength? What does that characteristic mean to your REI business?

"the 3 colors is ridiculous. stick with off-white or white and you will be far better off"

Spray in one day is what I say.