All Forum Posts by: Melissa Jolley

@Lorraine Patterson I have had so many interested in Laketown Wharf- I have nothing bad to say at this time. Your agent can pull the rental history and projections for similar units. A 'cost to own' as well. He can contact the current property manager or listing agent for that data and verify future bookings as well. These things will help you determine if it is the right move for you. *** Be careful with "rental projections"....the history is a better indicator.

@Lorraine Patterson If you are looking for cash flow it is really going to come down to your management situation. Prices on condos are high right now. How much cash flow on an annual basis? If you are paying a full-service property manager, you can expect to pay them 25% of gross rental income. I created a spreadsheet to analyze deals like this and determined that the single family homes (used as vacation rentals) are often more profitable but they have their own risks.

If you are willing to be hands-on, using AIRBNB for the marketing/booking side....you could likely make it work. Another variable- how much do you plan on staying in the unit yourself? Also-what is your financing strategy?

Long story long...what is your main goal with this investment? What is your investment criteria?

@Jay Hinrichs I will certainly look into this. I like to treat everyone like a friend so I tens to go above and beyond....there is a fine line. Glad you posted this.

@Frank Nabors

Investor friendly agents are a thing....however...it can be hard to hang in there with new investors. Specifically if they have not figured out what they want to do...or established guidelines for their "buys". I worked with some new investors recently that were all over the map. SFH, STR, Mobile Home Parks...that is fine but they had no set ROI, no real direction. That was hard. When that happens I generally try to help by asking about their goals.

I went the other way with real estate. I get excited about the crappy house and sad about the perfectly done, brand new. Therefore, I find it difficult to work with residential (retail) clients.

Take your time finding one that is right for you....it matters!

@Bill Doser

City septic is good. You want to have it set up where each tenant pays their own. Park owners typically cover garbage and lawn service. If it is not currently set up that way, getting separate meters can help add value. 

Renting the land like you described is a popular method for some of the most profitable parks. It is ideal since it significantly lowers expenses associated with repairs. In fact, some investors will buy a park with park-owned homes and sell them all to the tenants or market them others so they can get rid of the expense of repairs. 

The contract to purchase will stipulate what happens with current tenants. It varies widely. 

Well- exit strategy means different things to different people. For me, I want to scale by business so that means I want to create a snowball type situation where I come in, add value....get the cash flow to a point that it is attractive and then sell it for more....now I can buy a larger property. 

Search Mobile Home Park Due Diligence in the search bar at the top right to see a list of important things to check for.

Hope this helps!  

@Bill Doser

What kind of waste system is in place? Septic, city sewer?

The lot is just over a half acre so you are likely maxed out on being able to add more pads for mobile homes....this is an obvious negative.

For park owned homes I always assume a 50% expense (not including mortgage)..this is a personal thing. So.....$1400 monthly turns into $700 monthly after expenses.....$8400 a year...at ask that is a 12% cap rate at ask. Not too bad right? 

You will need more detail to know for sure. The waste system makes all the difference. Also, how involved do you plan to be? @Greg H. said it best...what is your exit strategy?

@Alex Nelson, 

You can call a contractor for this. They will check to see if the wall is load bearing. If it is, a support beam can be put in place either in the ceiling (attic area) or it can be made visible and decorative. In general, if the frame for the wall is touching roof supports you can see that the wall is "bearing" the weight of the roof. If you are able to run your hand between the top of the wall's frame and the truss (if it is this style) then it is not load bearing. Still, if you are very new to this type of renovation then a contractor (a good, local one) is your best resource. 

I hope this helps! Good luck on your adventure.

@Jeremy Hester My mother lives in Dothan, AL. I actually graduated high school in Marianna, FL (south of Dothan in FL). I am trying to get her into real estate investing but she is not having it. I like Point Washington..there was an REO there a while back that was promising but they go fast. Watch out for those no-see-um's! @Rob Beene I lived in Enterprise when the tornado hit the high school there. It was crazy. Perhaps I will get my mom to attend one of the meet-ups. Her husband is in construction near Cottonwood, AL.

@Jon Hilfiger I am glad things are working out well- mostly that you like the place you purchased. Some people looking for STR's on the beach are in it for the cash flow and some are simply in it to own a beach property for much less than they would otherwise. Like several others have said, it is rare to find a property that cash flows after paying a property manager. The only exception to this I see is a SFR that transitions to STR after purchase. The prices on the beach in PC have increased so the returns are about the same as Destin in some areas. @Valerie Rogers I will have to check out Dune Pointe!

@Jeremy Hester That is great! The rental situation is nuts here. I spoke to my lender and she is backlogged just getting pre-approvals out to people who couldn't find rentals. Rates are low and people are buying.