All Forum Posts by: Michael Willis

Hi all, so heres an interesting question. Why would I as the landlord install solar on my multifamily rental property?  

Is there a strategy I haven't seized on where I would be paid back for the solar energy that I generate but don't use (additional revenue and lower costs than traditional electric) and does any one have any experience flat rate billing tenants (say for example $100/mo) and then pocket the difference if they actually use less energy than the flat rate amount? This seems like it would be a win/win for all. The tenants would theoretically have lower steady bills and I would capture more income from them and through cash reimbursements.

What if anything creative have any of you done in this regard? Footnote, today my property is a 100% airbnb short term rental property wherein I pay all the bills (so this would be beneficial) but it may at some point revert back to traditional tenancies.

Thanks in advance! 

Hi AJ thanks for chiming in.  My instincts say that opportunity lies where others run. However, what questions are you/ have you been asking re the lagoon system of the park you're looking into?  What have you heard is the realistic pit falls?

Best regards! 

I have come across a 60 spot MHP off market of interest to me.  I could use feedback on true value.  I have come across several ways to valuate and not sure where this lies or which way is best to valuate.  Of note is that this park is near a new town shopping center, in an area of 200k plus and near a new hospital too. Owner is holding firm at 2.6m. Thanks in advance!

The facts are:

* 60 pads total. 28 POHs. (Avg age of POHs is 20-25 years)

       54 occupied pads

         4 vacant pads 

         1 vacant POH.

Avg. lot rent: 450/mo

Avg. home rent: 850/mo

Total claimed income:  399k 

Total claimed expenses: 110k

Water treatment plant and well water

Hi All, can anyone chime in on whether a Lagoon Water Treatment Facility is something to run or not be afraid of. I have been told by certain agents that a Lagoon is the next best thing to city water and sewer.  Is this accurate or a play on reality?

Thanks in advance for the insight! 

Guys thanks. It makes plenty sense. My takeaway is that I can do the dance and learn about this park but be very very weary. I will focus on other parks with City sewer and water as a starting point. My understanding is to find seller financing in the MHP world isn’t too challenging.

Is there any consolation if as part of the deal a seller provides the staff, permits the well checks out etc. He has owned it for 10+ (maybe 15) years and at 75 years old just wants to be out of it but said he’d as part of the deal provide all personnel and support to the new owner. That being said, should everything check out , I still feel I’m treading on thin ice with this one. Maybe I just need to find a different mhp or go with the office building.

Jay I take your experience to heart. That sounds ridiculously painful. If I put out 900k on this deal I wouldn’t be capable to weather that storm. I asked for input bc I am more of a residential or office building investor by trade. I absolutely and of course before closing will ask for that information, permits and Contact persons and make contact. I certainly can go elsewhere to buy but this caught my eye for ease of seller financing solid good terms on the note (5%) and within an hour and 15 from my home. Most parks are distant entities from my metro location.

I checked private water and sewer.

Hi Jay thanks for that information. I keep hearing both sides of the coin about owning the homes. These are not nice ones. I was told by the owner that he does basically inherit them from the elderly who pass for a few thousand bucks. He cleans them up 3-8k and then rents them for 850-1000k/mo. He says there’s no issue finding tenants. He likes having them. Again I’ve heard arguments for and against ownership. The park does have a private “water treatment plant”. Owner says dep comes “daily” to check it. He’s willing to refurbish it before selling but has all permits for all operations and it’s operational. Thus there is no septic. I am checking what the water supply is but know that except for a short 100 yard roadway the roads are plowed by the city.

Ps - for comparison the mhp is 2.7m and I should mention both sales are off-market private transactions