All Forum Posts by: Margie Fuller

@Kal A., I am going to comment on the termites since you've had some good feedback on the financial analysis. I have personally experienced a termite nightmare, however, they were LIVE. I got a clear termite letter, but the termites were live. After an investigation, the state required the termite company to trench the piers and treat for termites.  The state inspector said there are 2 types of homes, those who have had termites (and show prior evidence but have been treated showing no active infestation) and those who will have termites. In other words, you're really not getting around the wood eating creatures unless you maintain an active termite bond/annual treatment from the date it's built. Even then, there are still chances of isolated munching. :) 

My case was a bad one. It was an unanticipated expense. I wouldn't have offered the price I did, had I known in advance. Fortunately, I was going to rehab the house anyway. It just caused the work to be more structural than cosmetic. As long as the termites show inactive (which means no tunnels are found) and there are no roof leaks (this is what caused the problem in my house), then you should be fine. If there are any roof leaks, the termites can live at the point of the leak not requiring them to build tunnels to go back into the ground for water. If you find evidence of a roof leak, then I would require a sampling of the area of the leak. They will poke a spike through the wood. If it goes through, you have rot at minimum or termites. That area will need to be fixed anyway, so the drywall will need to be pulled back to see if there are live termites. If there are, then you keep pulling until you find clean wood. There are contractors who specialize in repairing termite damage. They will get rid of the eaten portion and double up with new wood (maybe even treated wood) in that area. We actually decided to switch the bathroom and closet around, so we could get the water out of the previously infested area. We haven't had any other issues since then. We are still repairing structural issues here and there as a result of old damage though (as we're able to get to that area). 

Request all viewings be ADULTS ONLY until they have secured a contract on a home. It assists the parents in having their 100% attention on the showing, so they won't miss something that could be a deal maker or deal breaker for them, and it protects the parents from the risk of having to pay damages should something be moved and thought to be missing or broken during their visit. In the 20 years I sold real estate, I seldom ever had children go through showings. They would be bored. If they do show up, maybe ask the parents to allow them to use a electronic device to entertain them during the viewing. Perhaps it would limit their touching anything or wandering off anywhere. Worst case scenario, lock the back door with a sign that reads, ADULTS ONLY. NO CHILDREN PERMITTED IN BACKYARD DURING SHOWINGS. They can look out the window, and perhaps schedule an appointment to return without the children. Make this point known prior to the visit. Parents will make arrangements to be sure they can see everything.

@Christina McCaffrey Thank you for your response. I live in a rural area, so there are a lot of mobile homes here, but they are spread out all over the county. There is a 1 acre restriction for mobile homes if they are on septic tank. The exception to that is of course mobile home parks that are preexisting, but I'm not finding any of those for sale. 

I do have a few mobile homes on my prospect list. If I can purchase a rehab mh to replace with some of these that are in bad shape (if I'm even permitted to do that by code---that's one of those things I have questions about), I can be more competitive because of the size of the property. I am ready to make a decision and make my first purchase to just get the process going, but I don't want to jump without being smart about it all. I need to set some goals to make sure this happens in a reasonable period of time. 

Hi Adam. One specific question I do have is, what do you typically do before you make an offer on a MH? If the property isn't occupied, I've been told the septic tank and well need to be inspected. Is that something that the owner provides? Are there any other types of buyer due diligence that you do on MH that you wouldn't typically do for a stick built home? Have you ever purchased a mobile home and wanted to improve the property only to learn there were things that you missed prior to closing that you should have known?

Originally posted by @Jennifer Soelberg:

@Margie Fuller we have purchased many manufactured homes in our area and used them as rental properties, as well as flips. We have found it is much easier to resell manufactured homes on lease options. The people who are looking to buy mobile homes, tend to be looking in low price ranges. We do lease options so that we have time to help them build up a good down payment and purchase the property at the end of the lease period. 

If you plan on using manufactured homes as rentals, we have also had good luck with that. In our area, we get almost the same rent for a 3/2 manufactured home as a 3/2 stick built, so it really depends on your area and how much you can get in rent for a manufactured home. 

Let me know if you have anymore specific questions!

When considering mobile homes whether with property or purchasing property for mobile homes (land with septic tank and well), what things should I make sure I know about?

I've called regarding codes and zoning. They mentioned something about a well inspection etc. What items do you have done before making an offer on a property like this, and how would the finding results either encourage or discourage your purchase or offer amount?

@Krishna, generally what's wrong with it on MLS is the price. It's one of the top explanations at least.

Originally posted by @Krishna Chava:

Congrats @Joseph Cornwell. I like the fact that you took you first plunge with a MLS deal that has been on market for 6 months. Most people would assume there is something seriously wrong with it. It takes conviction to believe in your judgment to buy such a first deal and I am glad your conviction paid off nicely.

I have 20+ years as licensed real estate professional (and beyond that in real estate consulting), 16  years in property management SF/MF, 90+ units, 97%+ occupancy and collection rate. I had taken a break in the business to complete my master's degree. I have a B.S. in Applied Behavior Analysis (very helpful when working with tenants), M.A. in Organizational Psychology/Consumer Psychology (business form of psychology).

My husband and I are preparing to return to the real estate market as investors. I decided to let my license go because I wasn't interested in continuing from that side of the table, but I will be continuing in RE education for the professional development. I'm in constant professional development with interests in money, finance, real estate, wealth building, networking, etc. 

We will begin our investment journey by using our primary home as our first rental property. We would like to build relationships across the country but  are considering the Peachtree City, GA area for the purchase of a multifamily property that we could house-hack. If anyone owns a quad or 6 plex or so that they would be interested in owning the financing for, please let me know. I would even be interested in building partnerships to be able to provide you with professional property management services in exchange for owner financing on a suitable unit. 

We'd like to get to know investors in the ATL and surrounding area in general, so we plan to visit the REI meetings when he is on a vacation. The goal is for him to leave his job of 12-14 hour milk delivery, and for us to go full-time in REI and management (until we're ready to hand management off to someone else).

Miscellaneous information about us: We have a son who is soon to be 6 years old. We are very active in ministry. At the request of our pastors, I started and currently manage a post-secondary bible college for our church in cooperation with Life Christian University in south Florida to provide bible education for those interested in working in building their bible knowledge or working in the ministry. This is a volunteer position but speaks to my dedication, commitment to excellence, and leadership abilities. Personal and professional integrity is very important to my husband and I; therefore, we are looking for the same in a business partner. We are known to our friends as "The Creative Couple" because of our skills we use to help people in business. We are looking forward to leveraging all of our skills to build something great. We are non-judgmental and are interested in building friendships with professionals from all walks of life. If that interests you, let's begin getting to know each other. 

What they said plus ask for verification of the alarm and turn in to your insurance company to get a discount on your insurance. also have them add you as an emergency contact so you can be notified if there's a break in. I think there are more positives than negatives especially if they are paying for it. of course they should have asked but salvage the relationship and glean the benefits. you may be left with an alarm when they leave. nice. if it would cause damage to remove it, they will likely leave it.

1. walk through inspection with them present to compare to move-in inspection and noticr of non-complaint behavior if any . They agreeing to findings. 2. complete repairs found by inspection and deduct from deposit 3. clean carpet if they don't provide a receipt from a local, professional cleaner which is the condition they received it in. deduct from deposit if they didn't. 4. if a pet was allowed, they must turn in a receipt showing it was treated for fleas. if If they dont it comes out of the deposit. if any damage from pet they're given an estimate of repair and sign an agreement that they will pay any excess not covered by deposit. 5. touch up painting as needed, filters changed, fire alarm batteries updated. 6. get keys from tenant and change locks. old locks go into inventory to be used in other properties. 7. return their deposit with a letter documenting what expenses were paid out of it and a notice that they are welcome to return if they were a good tenant. they can use the statement for their future landlord as well. if they were not a good tenant, they go on a do not rent list for future reference with a copy of mive.iut inspection signed by them indicating damages and/or non-compliance behavior.