All Forum Posts by: Kevin D.

Any takers for a mobile home park (MHP) valuation model that you'd like to share?

I've read through a bunch of forum posts about how to value a Mobile Home Park, but does anyone have a spreadsheet that they would be willing to share with me (so I don't have to start building a model from scratch)?  Thanks in advance.

Welcome @Kyle Poslosky to investing in NEPA. 

Remember, there’s no shame is starting off poor. 

Hi @Amy Engelhard, in PA, I believe that you have to honor an existing lease with a tenant. Also, you will be responsible for the heat and there are strict limits on how low it can drop in the winter.  I haven’t used one of the apps to control the thermostat, but I think it’s a great idea. I always install a locked case if there is a manual thermostat.  Also, I would ask the previous owner to call the gas co to get copies of he bills from last winter, they may not give them to you if you call. When you do transfer the account in to your name, the gas company can put you on a plan where you can pay the same amount all year, so that you don’t have huge bills in the winter, you can spread that cost over the summer months as well. 

@Amy Engelhard I've separated electric at 2 properties that I have.  It has never been the whole building with 4 units, but I bought a duplex that had one electric meter and we added a second panel and the electric company came in and put in a second meter. It wasn't too costly, but I had that budgeted in when I made my offer.

@Amy Engelhard, $260k for that type of property sounds a little rich to me.  I'm an agent and investor in NEPA and all of my rentals are in the Wilkes-Barre suburbs, about 20 minutes south of Scranton.  I've seen 4 units sell for $200k down here, but can't remember any going for more than that.  For what it's worth, I'd ask your aunt to send you some comps for sales in that section of Scranton that would justify that valuation.  Also, between you and me (and the rest of Bigger Pockets), I'd be very wary of paying the electric bill for four units.  I pay for gas heat at one of my 4-unit properties, and I can live with that because I can control the thermostat, but ceding control of electric would be a red flag for me.

Welcome, Matt. Your story sounds fairly similar to mine. I started with a SFR, then a duplex and am up to 32 units. Feel free to reach out to chat any time. My contact info is in my BP profile.

Congrats on your first purchase. I'm an investor and realtor in the Wilkes-Barre area. Like Scranton, there are really nice pockets in the W-B area and some places that are less desirable. I think your synopsis is very accurate. Solid cash flow investments, with low probability of price volatility. 

I remember one of the guests on the BP podcast from Pittsburgh saying, "You don't get the hangover if you're not invited to the party", when they were discussing the crash in 2008. I think it's similar here in NEPA. 

Joe Mashinski is an attorney and a very good friend of mine. He does all of my title policies for my investment properties.  Shoot me a private message and I'll send you his contact info. Happy to help!

I have a duplex across from a cemetery also. In my case, it's a positive because there is limited on-street parking on this road. So for the two blocks the cemetery runs, there are fewer people looking for parking.