All Forum Posts by: Justin Ouchley

Wish there was more action on BP for the Monroe/West Monroe area. The area is big enough to do some networking but I rarely see any activity involving local folks.

Dave helps a huge number of people. His philosophy is great for that person who doesn't know where to start and have $20 in their checking account. Unfortunately that's where a majority of people in this country are at because we don't teach our kids how to make money, only how to get a job and help make someone else money (channelling Robert Kiyosaki here). Problem is, who can "save up and pay cash" for rental properties using their salary without taking a lifetime to acquire enough to make it worth your while and never being able to here enjoy the fruits of your labor. Like several have said, stay debt free in your personal life and use SMART leverage in your RE life. No risk, no reward.

Gabriel, Been there, done that. Some things to remember. If you try to remove the wallpaper. 1. What's under the wallpaper if you decide to remove it? Is it something that will look good prepped and painted. 2. Will what's under the wallpaper be significantly damaged during the removal and if so, that's time and money to repair. Skim coating the damage is easy enough but matching any existing texture is the tough part. If you go the 1/4" drywall route 1.Number one question is if the existing trim work can stay in place or will need to be taken off to install the drywall 2. the electrical outlet boxes/faces will have to be moved out, the baseboards, moulding and door frames may need to be removed, trimmed and replaced to make it look good. 3. Old baseboard and crown moulding don't come off in one piece and will likely need to be replaced which will mean carpentry work and paint. 4. Would all in likely be more expensive and time consuming but will probably be a better product. Like most things, there's no easy answer. Hope this helps and good luck.

Eric,

A few things to consider.

1.  What condition are the roads and how much capital improvements are needed there. 

2. What are the sewer lines made from? Clay tile, PVC, cast iron? With a park this old there could be major upgrades needed in the lines or continual expensive maintenance to keep the lines clear. If they say the lines have been upgraded, great, but check to see that it's the whole system, not just the last problematic portion. Ask who the owners use for plumbing issues and speak to them? If they won't give you the info, that should be a flag. If you do buy this park, factor in the cost to sub meter the water. The ROI will be huge.

3. Considering the age of the park, what size amperage are the electric panels. Newer mobiles have much higher electric needs than the older models and many older parks have never upgraded their electric. 

4. What condition are the services to the vacant lots? Are the electric/water/sewer/gas connections still intact?

5. What do the local authorities say about the park? Any outstanding or past violations?  Is the park licensed/platted for a full 50 spots or is this just a number the current owner thinks could be squeezed into those 11 acres? 

6.  Look at the lot lease agreements to verify who pays what utilities. 

7. Dont forget dumpster fees, park lighting, taxes and insurance, legal fees, lawn care/snow removal, advertising, road maintenance etc when looking at your cap rate. 

8. Who's going to manage it and what will the cost be? Check with some nearby property management companies.  Don't expect a friendly resident to jump in and do a great job for just free lot rent. 

9. How many vacant homes are there in the park?  What's the plan for them?  Fix and sell/rent out/haul off?  All options have their upside and downside. 

As far as verifying income and expenses- last three years tax records with the actual listing of expences backed up with bank statements ( if they are that organized) would be great. Mom and pops don't always have best records,though. 

Your biggest problem is the private water and sewer.  That's a deal breaker for many buyers. It's just a matter of time before there are issues .  It may be one year or 30 years but sooner or later it will be a major expense. That doesn't mean there isn't money to be made in the meantime. 

I'm not trying to be a Debbie Downer here, just make sure you go in with your eyes wide open, especially for a long distance buy. 

Good luck. 

Anything from Frank Rolfe will be helpful when it comes to mobile home parks.  Good luck. 

Many thanks. I use audiobooks to maximize that wasted windshield time. 

Thanks Michael

Depends on the area bit it doesn't seem too out of line as long as they supply everything and will back up their work. A smaller painting company or one man show will be negotiable on the price if they are needing the work. If you don't ask, you don't get.

Glad to hear it. Need more action from Louisiana here. Hope to have a North LA meetup in Monroe soon.

Hi Slade. I'm from West Monroe and have been checking around Bigger Pockets for folks in our area. Good to see more of us from around Monroe.