All Forum Posts by: Melissa N.

Here's how I was doing it - 

27 total lots x 175 x 70 = $330k. 

$60k for the house (probably worth about 75k but to your point, I'm discounting it). 

26k in financing currently so we'd take that over. Then 5k per house for the remaining 6 rentals. 

Still hesitant on the private utilities. I don't know enough about wells to feel comfortable. It's the case of - I don't know, what I don't know.

Thanks @Craig H.@Ryan Groene.  Yea, the private utilities are an issue. I'll see what he says. Thank you again! 

Hey guys, 

I am talking to a mom and pop owner of a 27 lot + a 3 bedroom house. Here are the details:

17 lot rent only at $175

4 financed properties by current owner - $175 lot rent plus remaining balances of $26600. Paying 

6 rentals at $2215. He said two of the renters are only paying $175 (basically lot rent only) because he doesn't have the title to the trailers. How can I get title? Or better yet, what question do I  need to be asking about this because it seems to beg for questions. 

The 3 bed house rents for $600. 

He said the owners and tenants all take care of their own lawns. There is a paved driveway throughout the park that looks to be in good shape. It has a well and septic. He said the well costs $100 per month (I don't know anything about wells, please help ha) and septic is pumped as needed and he thought maybe that was once per year but wasn't sure since his son is running the property. 

Ask price is $475k and he said they have offers already but he would take mine first since he didn't think the other one could close and I am willing to work with him directly (1st offer he was worried about their financing, 2nd offer has a broker, and then there is me).

Any thoughts/feedback on the deal? 

The private utilities have me concerned since I've never bought a MHP. 

Thanks!
Melissa

@Paul Amegatcher Yes, Dayton OH. Thanks! 

Does anyone know of a great property management company near Dayton for a large multifamily (+68 units)? 

Thanks! 

Hello,

Can you send me the financials as well - [email protected]. Thanks! 

@ryan c. $200 is a bigger jump. How much will you have to spend to get that increase? I always look in terms of the return. Lets say you have to spend $5000 to get a $150, that's a 36% return and I'd go for it. Offer them the unit at the increased rent and if they stay, you win really big. If they leave you still get a great return.

Just have to figure out the true cost to turn the unit and how much you can increase. 

Good luck to you as well!

What are market rents? Start by looking at comps to see what is reasonable for the area. If you truly are below market than more than likely the tenants already know that or they'll find out when they look. Moving will be expensive and if they won't find anything cheaper, they'll stay. 

We provide also provide 3 choices at renewals - for example - if you renew for 1 year it's a $25 increase, 6 month is $40 and month to month is say $65. 

Most tenants won't leave for $25. If you want more, you might put comps in your letter. 

Good luck!

That's great news! Congrats! 

@Joseph Cornwell can you help him in Cincy? 

Try neighborhood scout, Marcus and millicap under research, IRR Viewpoint report, and city data (you can zoom in to very specific locations). I also talk to brokers and locals through BP for an insiders view.

Cincy has population shifts (primarily to east side right now). My manager loves Covington right now but the decline does give me pause.