All Forum Posts by: Kristopher Kyzar

Yes.  It's in Painter on the Eastern Shore.

Investment Info:

Other wholesale investment in Painter.

Purchase price: $200,000
Sale price: $210,000

4 acre mobile home park with 8 POH, and space for another 10.

What made you interested in investing in this type of deal?

Potential growth opportunity.

How did you find this deal and how did you negotiate it?

Facebook ads. Negotiation was challenging because the seller didn’t keep records at all.

How did you finance this deal?

Wholesaled it.

How did you add value to the deal?

Sold it based on the value add opportunity.

What was the outcome?

Wholesale complete.

Lessons learned? Challenges?

Buyer had a challenge finding the initial funding so he could purchase it and establish cash flow records for refinance. I did learn that there are grant programs for developing affordable housing opportunities that even apply to the mobile home realm.

@Shane Welch I sent you a message.

@Tyrus Hampton it's all about your tolerance for issues.  I've found that single family homes (stick built) tend to have lower cash flow, but generally attract tenants with more ownership.  They see the house as their home instead of just a place to live.  They tend to take better care of the house and stay longer.  This does translate into slow rent growth, but you're trading that for stability.  Small multi-family (duplex, triplex, quad) tend to have better rent to mortgage margins, and there's the inherent diversification by having multiple units in one property, but your tenants will tend to be more transient and have lower ownership.  They tend to view the place as a temporary living quarters until they can afford better.  A mobile home (singular) draws a lower class of tenant, though some people love mobile home living, so there are exceptions.  Mobile home parks, if managed right, tend to be a significant cash cow.  Especially if the homes are tenant owned and not park owned.  If you're renting a pad and maintaining only the grounds, mobile home parks are fantastic passive cash flow, especially if you use a management company.  Ultimately, it's up to you.  I lean toward single family, though I'm getting interested in mobile home parks these days.

@Preston Williams congratulations! Looking forward to seeing more.

@Marlon A Squires II there is definitely some good activity there in Moyock and Elizabeth City. The price points are lower than Hampton Roads, and the market moves slower, but things still move fairly quickly in the retail side. I believe EC is a good opportunity for investors because the level of activity in that side of things is lower.

@Aaron J Randolph I've bought several properties off-market with owner financing and I use a contract I had my attorney draft for making offers.  It doesn't spell out the actual financing terms other than down-payment and balance financed by the owner.  After we're under contract, I have the attorney draft the mortgage documents seperately.  @Sean Rooks has a good option with the LOI route.

@Paul Kuhn I use The Law Office of Jenny L Colon, P.C. for my RE attorney needs, and Zukerman & Associates for CPA/taxes.

Investment Info:

Townhouse buy & hold investment in Portsmouth.

Purchase price: $60,000
Cash invested: $12,000

2 Bed, 1 Bath townhouse purchased as a rental.

What made you interested in investing in this type of deal?

High rent to purchase price.

How did you find this deal and how did you negotiate it?

I found it on the mls. It was already under contract, but I put in a backup offer for $5k below asking. The original contract fell apart, and I was able to purchase.

How did you finance this deal?

Personal loan for $60K with $12K check at closing.

How did you add value to the deal?

Spruced it up a little and immediately got it rented.

What was the outcome?

A property added to my portfolio that will cash flow $375 after refinance.

Lessons learned? Challenges?

Backup offers are worth putting in. Sometimes when you've purchased 3-4 rentals in the recent past, even commercial lenders won't do the deal. Time to refinance to raise my DSCR.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Got a personal loan from one of the contractors I use on flips when the bank financing fell through.

@Peter Siler congratulations on a successful BRRRR. No small feat in today's market.